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Post Office FD: There are many types of schemes in the post office. If you like safe investment then you can get very good options here. Post Office Time Deposit is also one of them. People usually call it Post Office FD. Through this scheme you can more than double your money. Meaning if you invest Rs 5 lakh in this scheme then you can make it more than 10 lakh. For this you have to do just one thing. Know how-
Know what you need to do
Post Office FDs are of different durations (1,2,3 and 5 years). The interest rate also varies according to the duration. To more than double your money, you have to choose a 5-year FD. Currently, this FD is getting 7.5 percent interest. To double the amount, you have to invest in this scheme and increase it before it matures. Let us tell you that in a 5-year FD, you also get tax benefits under Income Tax Act 80C.
This way 5 lakh rupees will become more than 10 lakh
If you invest Rs 5 lakh in Post Office FD for 5 years, then at the rate of 7.5 percent interest, you will get Rs 2,24,974 interest on this amount in 5 years. In this way, the total amount will be Rs 7,24,974. But if you extend this scheme once for 5 years, then you will get only Rs 5,51,175 as interest and after 10 years you will get a total of Rs 10,51,175. In this way, you can get more than Rs 10 lakh by investing only Rs 5 lakh.
Understand the rules of expansion
Post Office 1 year FD can be extended within 6 months from the date of maturity, 2 year FD within 12 months of maturity period and for extension of 3 and 5 year FDs, the post office has to be informed within 18 months of maturity period. Also, you can request account extension even after maturity at the time of opening the account. The interest rate applicable to the respective TD account on the day of maturity will be applicable for the extended period.
