Post Office Scheme: how could one make money? This scheme’s speciality is that your money is safe. Variations in the market have no bearing on it.
Post Office FD: Like banks, many schemes are run in post offices too. Post Office Time Deposit is one of them. The common language calls it Post Office FD. Options of FDs with tenures ranging from 1 to 5 years are available in the post office. On a 5-year FD, 7.5% interest is being paid. You also gain tax advantages under Income Tax Act 80C. If you choose, you can earn twice as much as the principal on this strategy solely by interest and triple your investment.
Know what has to be done.
You must pick a 5-year FD to treble your post office amount. You have to invest in this program and prolong it before it matures. You must run this FD for 15 years; thus, you must do this extension two times in succession.
More than twenty lakh interest on ten lakhs’ worth of investment
Investing 10 lakhs in this FD will yield 4,49,948 rupees interest at a rate of 7.5% in five years. Consequently, the total comes to 14,49,948 rupees. If you run this program for five years, however, you will only collect 11,02,349 rupees as interest; after ten years, your total will be 21,02,349 rupees. Before it matures, you will have to extend it one more. In such a situation, in the 15th year, you will get 20,48,297 rupees only as interest on an investment of 10 lakhs.
Maturity will bring you Rs 30,48,297
In this sense, you will quadruple your investment and get double the interest than your principal, obtaining a total of Rs 30,48,297 on maturity.
This is how you will have to get the extension
One year FD of the post office can be extended within 6 months from the date of maturity, 2 year FD within 12 months of the maturity period and for extension of 3 and 5-year FD, the post office has to be informed within 18 months of maturity period. Apart from this, you can ask for an account extension after maturity when opening the account. The interest rate relevant to the particular TD account on the maturity day will apply during the extended period.
How much is interest in other FDs of post offices?
Different interests are accessible on different FDs of the post office. Interest is being paid on 1-year FD at 6.90% p.a.; on 2-year FD at 7.00% p.a.; on 3-year FD at 7.10% p.a.; on 5-year FD at 7.50% p.a.
