Like banks, many types of schemes are run in post offices too. Some schemes are such that the post office gives better returns than the bank. FD is also one of them. Through this scheme, you can earn more interest than the principal amount. But for this, you will have to apply a trick. Know about this here.

Post Office Time Deposit: Like banks, many types of schemes are run in post offices too. Some schemes are such that the post office gives better returns than the bank. Post Office Time Deposit is also one of them. In common language, it is called Post Office FD. If you like a safe investment, then you can invest in Post Office FD.

FD option is available in post office for 1, 2, 3 and 5 years. If you invest or have invested in a 5-year FD in the post office, then you can earn a good amount of interest and can more than double your amount, that is, you can earn more from interest than the principal amount. However, for this you will have to do one thing. Understand your benefit.

Money will be more than doubled in this way

Different interest is given on the post office scheme according to the tenure. If you invest in a one-year FD, then you get 6.9% interest, 7% on a two-year FD, 7.1% on a three-year FD and 7.5% on a five-year FD. But if you want to more than double your amount, then you will first have to invest in a 5-year FD and get this FD extended for the next 5 years. Let us tell you that tax benefits are also available on a 5-year FD.

5 lakh rupees will become more than 10 lakhs

If you invest in Post Office FD for 5 years, you will get interest at the rate of 7.5 percent. According to the post office calculator, on an investment of Rs 5,00,000, you will get Rs 2,24,974 as interest in 5 years, that is, you will get a total of Rs 7,24,974 on maturity. But if you extend it once, that is, continue it for 5 more years, then in total 10 years you will get an interest of Rs 5,51,175. That is, your interest will be more than your principal. In such a situation, in 10 years you will be the owner of Rs 10,51,175.

These are the rules of extension

Post Office Time Deposit Account can be extended within the stipulated period mentioned here from the date of maturity. 1 year FD can be extended within 6 months from the date of maturity, 2 year FD within 12 months of maturity period and extension of 3 and 5 year FDs has to be informed within 18 months of maturity period. Apart from this, one 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 for the extended period.