Looking for a safe and reliable investment to grow your wealth? The Post Office Fixed Deposit (FD) scheme offers an opportunity to more than triple your money over 15 years. Let’s explore the details and calculations behind this impressive return.

Post Office FD: Interest Rates and Tenures

The Post Office offers Fixed Deposits with flexible terms of 1, 2, 3, and 5 years. Here are the current annual interest rates:

• 1 Year FD: 6.9%
• 2 Year FD: 7.0%
• 3 Year FD: 7.1%
• 5 Year FD: 7.5%

How ₹5 Lakhs Grows to ₹15.24 Lakhs

To achieve this return, you need to invest ₹5,00,000 in a 5-year FD and extend it twice for an additional 5 years each. Here’s the breakdown:

1. First 5 Years

   • Principal: ₹5,00,000
   • Interest (7.5%): ₹2,24,974
   • Maturity Amount: ₹7,24,974

2. Next 5 Years (First Extension)

   • Principal: ₹7,24,974
   • Interest (7.5%): ₹3,26,201
   • Maturity Amount: ₹10,51,175

3. Final 5 Years (Second Extension)

   • Principal: ₹10,51,175
   • Interest (7.5%): ₹4,72,974
   • Maturity Amount: ₹15,24,149

In total, your ₹5,00,000 earns ₹10,24,149 in interest over 15 years!

Rules for Extending the FD

• Extensions must be requested within a specific time after maturity:
  • 1 Year FD: Within 6 months.
  • 2 Year FD: Within 12 months.
  • 3 & 5 Year FD: Within 18 months.
• Alternatively, you can request an extension at the time of account opening.

Locking in Interest Rates

The interest rate at the time of account opening is locked for the entire term of the FD, including extensions. For example, if you open a 5-year FD now at 7.5%, this rate will apply for the next 15 years, regardless of future rate changes.

Why Choose This Scheme?

• Safe and Secure: Backed by the Government of India.
• Guaranteed Returns: No risk of market fluctuations.
• High Interest Rates: Compounding at 7.5% ensures substantial growth.

If you’re aiming for steady and risk-free wealth accumulation, this Post Office FD scheme is a reliable choice to achieve long-term financial goals.