Post office FD is not only safe but also gives a good interest rate. Let us know how you can double your money through post office FD. If you are looking for a place to keep your savings safe and give better returns, then a post office fixed deposit (FD) can be a great option for you.
What is Post Office FD
Post Office FD is an investment scheme in which you deposit your amount for a fixed period and in return you get interest. Post office FD is backed by the government, so investment in it is considered safe.
Benefits of Post Office FD
Security: The post office is backed by the government, so investment in it is safe.
Stable Returns: A fixed interest rate is available, which makes it easy to predict the return.
Tax Benefits: Interest received on post office FD can be used for tax savings.
Flexibility: You can choose the duration of FD as per your need.
Tips to invest in Post Office FD
Choose long-term: Long-term FDs usually get higher interest.
Take advantage of compound interest: Repeated renewal of money gives the benefit of compound interest.
Make sure to appoint a nominee: Make sure to register the name of your nominee.
Take advantage of online facilities: Use the online facilities of the post office.
The magic of investing in a 5-year post office FD
You get a good interest rate on the 5-year FD of the post office. If you extend this FD for another 5 years after maturity, then your money can more than double. Let’s see some examples:
Investment of Rs 5 lakh: After 5 years your money will be around Rs 5,51,175. If you extend it for another 5 years, then in total you will get around Rs 10,51,175.
Investment of Rs 4 lakh: After 10 years your money will be around Rs 8,40,940.
Investment of Rs 3 lakh: After 10 years your money will be around Rs 6,30,705.
Investing Rs 2 lakh: After 10 years, your money will be around Rs 4,20,470.
Investing Rs 1 lakh: After 10 years, your money will be around Rs 2,10,235.
How to invest in Post Office FD
Opening a post office FD is very easy. You have to visit your nearest post office and apply with the required documents. You can also apply online, but this facility may not be available in some post offices.
Post office FD is a good way to keep your money safe as well as grow it. But keep in mind your financial needs and risk appetite before making any investment.