Post Office: Parents frequently aspire to secure a stable financial future for their children, striving to prevent any potential financial hardships. To realize this goal, many begin saving and investing in various schemes from the moment their child is born. Some individuals choose to invest in post office term deposits to meet future financial needs. For those looking to make a lump-sum investment, the Post Office Term Deposit presents an excellent opportunity. This scheme provides attractive returns on five-year fixed deposits, significantly surpassing the interest rates offered by numerous banks.
By investing Rs 5 lakh, one could potentially increase this amount to Rs 15 lakh over a span of 15 years. To achieve this, one should deposit Rs 5 lakh in a post office fixed deposit for five years at an interest rate of 7.5%. Upon maturity after five years, the total amount will be Rs 7,24,974. Rather than withdrawing this sum, reinvesting it for an additional five years will yield Rs 10,51,175 after ten years.
How to get Rs 15 lakh from a Rs 5 lakh investment
If an investment of Rs 6 lakh is made for five years, the maturity amount at the same interest rate will be Rs 8,69,969. Extending this investment to 15 years will result in a maturity amount of Rs 18,28,978. It is crucial to maintain the investment for five years, as this will extend the total investment period to 15 years. Upon maturity in the 15th year, the interest accrued on the initial investment of Rs 5 lakh will amount to Rs 10,24,149, bringing the total to Rs 15,24,149.
Post offices provide various fixed deposit tenures with differing interest rates: a one-year term offers a nominal rate of 6.9%, a two-year term offers 7%, and a three-year term offers 7.1%. The most advantageous option is the five-year account, which offers a nominal interest rate of 7.5%.