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Post Office Scheme: When a child is born in the house, every parent thinks that they will not let him struggle and will give him the best life. Due to this, parents start all kinds of financial planning as soon as the child is born. Some people start investing in schemes like PPF, Sukanya in the name of the child, while some people invest a lump sum amount to meet the future needs of the child.
If you also want to invest a lump sum amount then invest in Post Office Term Deposit i.e. Post Office FD. 5 year FD in post office is giving better interest rates than banks. Through this scheme, if you want, you can increase the amount more than three times, that is, if you invest ₹ 5,00,000, you can increase it to more than ₹ 15,00,000. Know how it will work-
5 lakh 15 lakh will become like this
To convert Rs 5 lakh into Rs 15 lakh, you will first have to invest Rs 5,00,000 in post office FD for 5 years. The post office is giving 7.5 percent interest on 5 year FD. In such a situation, if calculated from the current interest rate, the maturity amount after 5 years will be Rs 7,24,974. You do not have to withdraw this amount, but fix it for the next 5 years. In this way, in 10 years you will get Rs 5,51,175 as interest on the amount of Rs 5 lakh and your amount will become Rs 10,51,175. This amount is more than double.
But you will have to fix this amount once again for 5 years, that is, you will have to fix it twice for 5 years each, in this way your amount will be deposited for a total of 15 years. At the time of maturity in the 15th year, you will get Rs 10,24,149 only from interest on the invested amount of Rs 5 lakh. In this way, by combining your invested Rs 5 lakh and Rs 10,24,149, you will get a total of Rs 15,24,149. Generally, the need for money for a child increases during adolescence. In such a situation, you can easily spend this Rs 15 lakh on his future.
Understand the rules of expansion
To add an amount of Rs 15 lakh, you will have to increase the post office FD twice. There are some rules for this that you should understand. Post Office 1 year FD can be extended within 6 months from the maturity date, 2 year FD has to be extended within 12 months of the maturity period. Whereas for extension of 3 and 5 years FD, the post office has to be informed within 18 months of the maturity period. Apart from this, you can also request for account extension after maturity at the time of account opening. The interest rate applicable to the respective TD account on the day of maturity will be applicable on the extended period.
Post Office TD Interest Rates
Like banks, in post offices too you get the option of FD of different tenures. Different interest rates are given for every period. The current interest rates are as follows-
- One Year Account – 6.9% Annual Interest
- Two Year Account – 7.0% Annual Interest
- Three Year Account – 7.1% Annual Interest
- Five Year Account – 7.5% Annual Interest