Post Office Investment: Turn ₹5 Lakh into ₹15 Lakh with This Secure Savings Plan – Full Calculation
Maximize Your Savings with Post Office Fixed Deposit Scheme
Saving money is crucial, and starting early can help build a substantial corpus over time. Among various investment options, fixed deposits (FDs) are considered one of the safest choices. The Post Office Time Deposit Account (TD) functions similarly to a bank FD, offering guaranteed returns over a fixed tenure.
For those looking for long-term growth, investing ₹5 lakh in this post office scheme for 15 years could yield over ₹15 lakh upon maturity. Here’s a breakdown of the calculations.
Understanding Post Office FD Tenure
The maximum tenure for a single post office FD is five years. After maturity, investors can either withdraw their returns or reinvest the amount into a fresh five-year deposit to continue earning interest. By reinvesting for three consecutive terms, one can significantly grow their savings.
Full Calculation: How ₹5 Lakh Grows into ₹15 Lakh
-
First 5-Year Term:
-
Initial Investment: ₹5,00,000
-
Interest Earned: ₹2,24,974
-
Total at Maturity: ₹7,24,974
-
-
Second 5-Year Term (Reinvestment):
-
New Investment Amount: ₹7,24,974
-
Interest Earned: ₹3,26,201
-
Total at Maturity: ₹10,51,175
-
-
Third 5-Year Term (Final Reinvestment):
-
New Investment Amount: ₹10,51,175
-
Interest Earned: ₹4,72,974
-
Total at Maturity: ₹15,24,149
-
At the end of 15 years, the investor’s total corpus reaches ₹15,24,149, with an accumulated interest of ₹10,24,149.
Interest Rate Considerations
This calculation is based on the current post office FD interest rate of 7.5%. However, final returns may vary if the government revises interest rates in the future.
Final Thoughts
The post office FD scheme provides a safe and reliable investment opportunity for those looking to grow their savings with minimum risk. By following a strategic reinvestment plan, investors can significantly increase their wealth while ensuring financial security.