By investing just ₹5 lakh once in the Post Office's Term Deposit scheme, your money can grow to over ₹15 lakh in 15 years. With government guarantee and an annual interest rate of 7.5%, this scheme offers safe returns, allowing investors to gain nearly ₹10 lakh without any risk.
Post Office FD scheme: Among the Post Office's secure investment options, the Term Deposit (FD) is currently offering an annual interest of 7.5% on a 5-year tenure. If an investor deposits a lump sum of ₹5 lakh and reinvests the amount every 5 years, this sum will exceed ₹15 lakh in 15 years. Thus, a single investment yields a threefold return, providing the investor with a direct benefit of approximately ₹10 lakh.
What is this scheme
This is the Post Office's Term Deposit scheme, commonly known as Post Office FD or Fixed Deposit. In this scheme, an investor deposits a lump sum amount and receives interest annually. Currently, the Post Office is offering an annual interest rate of 7.5% on a 5-year term deposit. This interest rate is higher than many banks, which is why people consider it an excellent option.
How will the money grow with a single investment
Suppose an investor invests ₹5 lakh in the Post Office FD for a period of five years today. At an annual interest rate of 7.5%, their amount will grow to approximately ₹7,24,974 after five years. If the investor reinvests this same amount in the same scheme for the next five years, in the subsequent phase, this amount will increase to about ₹10,51,175.
The biggest benefit will be in the third phase
Upon the maturity of the second phase, when the investor deposits ₹10,51,175 again in a 5-year FD, this amount will grow to approximately ₹15,24,149 in the third and final phase. In this way, a single investment of ₹5 lakh will yield more than triple the amount in 15 years. If we consider the mathematics of the entire investment, the investor only put in ₹5 lakh once and did not have to invest any additional money for 15 consecutive years. Nor did they have to pay monthly EMIs or bear any market risk. Despite this, their amount grew to over ₹15 lakh after 15 years. This means the investor received a direct additional benefit of ₹10 lakh over their initial investment.
A secure and reliable investment option
This Term Deposit scheme from the Post Office is extremely beneficial for those who wish to make secure savings for the long term. As it is entirely a government scheme, there is no risk of losing money. The interest rate is also attractive, and there is no hassle of investing money repeatedly or paying installments.
A suitable option for children and the future
People seek secure savings for their children's education, marriage, or other future plans. By investing just once in this scheme, they can rest assured that they will receive a substantial sum after 15 years. The special thing is that they do not have to bear any additional financial pressure for this.
Nowadays, many investment options are available in the market, but most of them carry high risk. On the other hand, the Post Office FD scheme is completely risk-free. The money remains safe, and the interest rate is stable. This is the reason why this scheme remains a topic of discussion among investors.
