Every parent aspires to provide their children with a solid education and fulfill their every wish. They often think about ensuring their child’s financial stability, so they won’t have to rely on others due to financial constraints. To secure their children’s future, parents typically set aside some money each day. This leads many to start financial planning right from the moment their child is born. Some parents begin investing in various options like PPF, RD, and Sukanya schemes as soon as their baby arrives.
Additionally, some choose to establish a fixed deposit, which involves a lump-sum investment to cater to their child’s future needs. Today, we want to share information about a post office scheme that can significantly increase your investment in a short period. With this program, an investment of five lakh rupees can grow to fifteen lakh rupees. These post office plans are quite beneficial and have gained popularity among the general public.
Investing in the Post Office Term Deposit Scheme
If you’re considering making smaller, regular investments, the Post Office Term Deposit, or Post Office FD, is an excellent choice. This scheme offers attractive returns on a five-year FD, providing higher interest rates than traditional banks. You can potentially triple your investment. For instance, if you invest Rs 5,00,000, after 180 months, you could receive Rs 15,00,000. Here’s how the scheme operates.
Transforming Rs 5 lakh into Rs 15 lakh
To grow your investment from 5 lakh to 15 lakh, you simply need to deposit Rs 5 lakh into a post office savings account for five years. The post office offers a 7.5% interest rate on a 5-year FD. After five years, the maturity amount will be Rs 7,24,974. However, instead of withdrawing the money, it should be re-deposited for another five years. After 10 years, you will receive Rs 5,51,175 in interest on your initial Rs 5 lakh, bringing your total to Rs 10,51,175.
You will need to make two adjustments over a span of five years, which means you’ll be doing this twice within a four to five-year timeframe. By doing so, your investment will be secured for a total of fifteen years. In the fifteenth year, you can expect to receive Rs 10,24,149 solely from the interest on an initial investment of Rs 5 lakh, bringing your total to Rs 15,24,149. To put it simply, to grow your Rs 5 lakh to Rs 15 lakh, you must increase your post office fixed deposit twice. It’s important to familiarize yourself with a few guidelines.
Post Office TD Interest Rates
Similar to banks, the post office offers fixed deposits with various terms. Each term has a different interest rate. Here’s a breakdown of the interest rates available at the post office:
– A one-year account provides an interest rate of 6.9% per annum.
– A two-year account offers 7.0% annual interest.
– A three-year account gives you 7.1% annual interest.
– A five-year account has an interest rate of 7.5% per annum.
Desclimer : For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.
