Post Office Special Scheme: Invest Rs 500000 in post office and get Rs 15,00,000 on maturity

Consider investing a lump sum amount in the post office to potentially triple your investment. Learn how to turn ₹5,00,000 into more than ₹15,00,000.

Upon the birth of a child, parents often aspire to provide the best possible life for their offspring, thus prompting them to engage in various financial planning activities. This may involve investing in schemes such as PPF or Sukanya in the child’s name, or making a lump sum investment to secure the child’s future needs.

Consider investing a lump sum amount in Post Office Term Deposit, also known as Post Office FD. Post office offers a better interest rate for a 5-year FD compared to banks. With this scheme, you have the potential to triple your investment. For example, if you invest ₹5,00,000, you could potentially make over ₹15,00,000. Learn more about how this investment option works.

This is the method by which 500,000 rupees will transform into 1,500,000 rupees.

To triple 5 lakhs into 15 lakhs, you must initially invest ₹5,00,000 in a post office fixed deposit for 5 years. The post office offers a 7.5 percent interest rate on a 5-year fixed deposit. Based on the current interest rate, the maturity value after 5 years will be Rs 7,24,974. Instead of withdrawing this amount, reinvest it for the next 5 years. Consequently, in a span of 10 years, you will accumulate Rs 5,51,175 through interest on the principal amount of 5 lakhs, resulting in a total of Rs 10,51,175. This sum is more than double the initial investment.

You must once again fix this amount for 5 years, then fix it for another 5 years, resulting in a total deposit period of 15 years. Upon maturity in the 15th year, you will earn Rs 10,24,149 in interest on the initial investment of 5 lakhs. By combining the invested 5 lakhs with the interest earned, you will have a total of Rs 15,24,149. Typically, the financial needs for a child tend to increase during their teenage years. Therefore, you can utilize this amount of 15 lakhs for their future needs.

Comprehend the regulations regarding extension.

To increase the amount by 15 lakhs, you must renew the post office FD twice. There are specific regulations for this that you need to comprehend. The 1-year FD at the post office can be renewed within 6 months from the maturity date, while the 2-year FD must be renewed within 12 months of the maturity period. On the other hand, for the extension of 3 and 5-year FDs, the post office must be notified within 18 months of the maturity period. Additionally, you can also request an 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 to the extended period.

Interest Rates at the Post Office for Time Deposits.

Post offices also provide the option of Fixed Deposits (FDs) with various tenures, similar to banks. Each tenure comes with a different interest rate. The current interest rates are as listed below.