Investing in Fixed Deposits (FDs) is a popular choice among investors due to the safety and fixed returns they offer. Most people prefer FDs for their low-risk nature. All banks in the country provide FDs, and post offices also offer FDs with various durations and interest rates.
Today, we will share a strategy for investing in post office FDs that could potentially triple your investment. Let’s dive in.
Investing in Post Office FD
The post office offers a 7.5% interest rate on FDs with a 5-year tenure. To triple your investment, you need to extend this FD twice.
Example: Turning Rs 2 Lakh into Rs 6 Lakh
If you invest Rs 2 lakh in a 5-year post office FD, you’ll receive approximately Rs 2,89,990 at maturity. Next, if you extend the FD for another 5 years, you’ll receive Rs 4,20,470.
After extending it again for another 5 years, you will have a total of Rs 6,09,370. In this way, your Rs 2 lakh investment can grow to Rs 6 lakh over 15 years.
Example: 2 Lakh Becoming 6 Lakh
If you invest Rs 2 lakh in a 5-year FD at the post office, your total maturity amount will be Rs 2,89,990. After extending the FD for another 5 years, you’ll get Rs 4,20,470.
Extending it for a third time will bring your total to Rs 6,09,370. In this way, your Rs 2 lakh investment will grow to around Rs 6 lakh, but it will take 15 years to achieve this.