Post Office Time Deposit: Like banks, you also get the option of FD in the post office. Different interest is given in FD of different tenures. But if you want, you can make your money more than three times through the Fixed Deposit scheme of the post office. Let us tell you how you can convert ₹5,00,000 into ₹15,24,149 through FD.

The option of FD is available for 1, 2, 3, and 5 years in the post office. 6.9% interest is being given on 1-year FD, 7.0% interest on 2-year FD, 7.1% interest on 3 year FD, and 7.5% interest on 5 year FD.

If you want to convert ₹5,00,000 into a return of ₹15,24,149, then you will have to first invest in a 5 year FD and this FD will have to be extended twice for 5 years each, that is, the FD will have to be continued for 15 years.

If you invest ₹5,00,000 in FD, then in the first 5 years you will get a return of ₹2,24,974 at the rate of 7.5% interest and the maturity amount will be ₹7,24,974. You have to extend it for the next 5 years. After the extension, you will get Rs 3,26,201 as interest and the maturity amount will be Rs 10,51,175. You will have to extend this FD for another 5 years. In the 15th year, you will get an interest of Rs 4,72,974 and your maturity amount will be Rs 15,24,149. In this way, in 15 years, you will earn a total of Rs 10,24,149 on your investment only from interest.

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 FD, you have to inform within 18 months of maturity period. Apart from this, you can also request for account extension after maturity at the time of opening the account. If you want, you can place an extension request at the time of account opening.

The same interest is paid on the extended account which is applicable on the respective TD account on the day of maturity. For example, if you invest in FD for 5 years this month, then 7.5% interest will be paid. In such a case, you will get returns on the extended account according to the same interest rate. Even if the interest rate on 5-year FD changes at that time, it will not affect your FD.