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Post Office Scheme: When a child is born in the family, 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 somewhere to fulfill 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 rate than banks. Through this scheme, if you want, you can more than triple the amount i.e. if you invest ₹ 5,00,000 then you can increase it to more than ₹ 15,00,000. Know how it will work-
This is how you can earn 5 lakhs and 15 lakhs
To make 5 lakhs into 15 lakhs, you first have to invest ₹5,00,000 in a 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 at 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 through interest on the amount of 5 lakhs 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, 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 from interest only on the invested amount of 5 lakhs. In this way, by combining your invested 5 lakhs and 10,24,149 rupees, you will get a total of Rs 15,24,149. Usually the need for money for a child increases in teenage. In such a situation, you can easily spend this 15 lakh rupees on his future.
Understand the rules of expansion
To add the amount of 15 lakhs, you have to extend the post office FD twice. There are some rules for this which you should understand. Post Office 1 year FD can be extended within 6 months from the date of maturity, 2 year FD has to be extended within 12 months of the maturity period. While for the extension of 3 and 5 year FDs, 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 opening the account. 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 each tenure. The current interest rates are as follows-
- One Year Account – 6.9% annual interest
- Two Year Account – 7.0% p.a. interest
- Three Year Account – 7.1% annual interest
- Five Year Account – 7.5% interest per annum