Post Office Special Scheme: ₹5,00,000 Investment Will Become ₹15,00,000 on Maturity
Post Office Scheme: If you want to make a lump sum investment, the Post Office Term Deposit (FD) can be an excellent option for you. It offers attractive interest rates that can help you more than triple your invested amount.
Here’s how you can turn ₹5,00,000 into more than ₹15,00,000 through this special scheme.
How ₹5,00,000 Can Grow into ₹15,00,000
To grow ₹5,00,000 into ₹15,00,000, you can invest it in a Post Office FD for 5 years at an interest rate of 7.5% per annum. Here’s the breakdown:
- Step 1: Initial Investment of ₹5,00,000
At 7.5% interest, after 5 years, your ₹5,00,000 will grow to ₹7,24,974. - Step 2: Reinvest the Amount for Another 5 Years
You do not withdraw the amount; instead, you reinvest it for another 5 years at the same interest rate. This will make your total amount ₹10,51,175 (principal + interest). - Step 3: Extend for Another 5 Years
Reinvest the total amount of ₹10,51,175 for another 5 years. After 15 years, the interest will accumulate to ₹10,24,149. - Step 4: Final Maturity Amount
Adding the original ₹5,00,000 and the ₹10,24,149 interest, your final maturity amount will be ₹15,24,149.
This strategy will help you accumulate over ₹15 lakhs in 15 years, which can be used for your child’s future needs, especially during their teenage years.
Rules for Extending the FD
To earn this large amount, you need to extend your Post Office FD twice, each for 5 years. Here are the rules for extensions:
- 1-year FD: Can be extended within 6 months of maturity.
- 2-year FD: Extension needs to be done within 12 months of maturity.
- 3-year and 5-year FD: Extension must be informed within 18 months of maturity.
- Alternatively, you can request the extension at the time of opening the FD account.
The interest rate applicable at the time of maturity will apply for the extended period.
Current Post Office FD Interest Rates
The Post Office offers different FD schemes with varying tenures and interest rates:
- 1-year FD: 6.9% annual interest
- 2-year FD: 7.0% annual interest
- 3-year FD: 7.1% annual interest
- 5-year FD: 7.5% annual interest
If you are looking for a safe, long-term investment, the Post Office Term Deposit can be a great option to grow your savings and secure a substantial amount for future needs.
