Like banks, there are many investment schemes available in the post office. Post office schemes also offer guaranteed returns. One of them is the Post Office Time Deposit, also known as Post Office FD. There are FD options with tenures ranging from 1 to 5 years in the post office, with different interest rates for each tenure.

If you want to invest for the long term, you can choose the FD option. A 5-year FD can triple your investment. You will earn double the amount you invested just from the interest. But there is one thing you need to do. Let us tell you the trick to get double the interest on the principal in a post office FD.

More Than ₹10 Lakh Interest on an Investment of ₹5 Lakh

If you invest ₹5 lakh in this FD at an interest rate of 7.5%, you will earn ₹2,24,974 in interest over 5 years. This means the total amount will be ₹7,24,974. However, if you extend this scheme for another 5 years, you will earn ₹5,51,175 as interest, and after 10 years, the total amount will be ₹10,51,175. You need to extend the scheme once more before it matures. After 15 years, you will earn ₹10,24,149 in interest. By the end of 15 years, your total amount, including the principal, will be ₹15,24,149. In this way, your investment will triple, with more than double the amount coming from interest alone.

How to Extend Your Post Office FD

  • A 1-year FD can be extended within 6 months from the maturity date.
  • A 2-year FD can be extended within 12 months of maturity.
  • For 3-year and 5-year FDs, you need to inform the post office within 18 months of the maturity period.
  • Additionally, you can request an account extension at the time of opening the account.
  • The interest rate applicable on the maturity day will be applicable for the extended period.

Interest Rates on Other Post Office FDs

  1. 1-year FD: 6.90% annual interest
  2. 2-year FD: 7.00% annual interest
  3. 3-year FD: 7.10% annual interest
  4. 5-year FD: 7.50% annual interest

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered financial advice. Interest rates and investment terms are subject to change, so please verify details with the official Post Office or financial institution before investing. We are not responsible for any financial decisions made based on this information.