Every parent has a dream of having their children be at par with the rest of the world and likewise works out on all grounds to fulfill his/her child’s present wishes and future wants. While such arrangements have to do with the pay of a child so that he/she has to earn and not beg at anybody’s doorsteps, parents keep aside savings regularly. And this happens when a child is born and parents think of different kinds of planning to save for his/her future.
In the birth of children, many parents would do create their future savings plans like PPF, RD, and Sukanya for these babies. Fixed deposits are another way of investing a lump sum money. With this, we introduce you a post office scheme that gives the highest yield in a very short period. This scheme increases 5 lakh rupees to 15 lakh. This scheme is immensely popular among common people and helps children in balancing the financial future.
Post Office Term Deposit Scheme:
If somebody wants a lump-sum deposit, he/she can invest in this Post Office Term Deposit. This is a good plan because it gives high interest on a five-year FD as compared to banks. In this way, the amount can be increased thrice or more. For instance, in the case of Rs 5,00,000 investment, after 180 months it will become Rs 15,00,000. This is safe, beneficial, and will give you good returns.
This is how Rs 5 lakh can be converted into 15 lakh Rupees
There is nothing more to be done for converting 5 lakhs into 15 lakhs. Deposit the amount of Rs.5 Lakhs in the FD of the post office for five years. The post office provides an interest rate of 7.5 percent on a five-year FD. The maturity amount is likely to be Rs 7,24,974 after 5 years, but this money is to be redeposited after five more years, and not withdrawn. So, in a span of 10 years, the post office will pay interest on Rs. 5 lakh, which will total Rs. 551,175, as it will now become a sum of Rs. 10,51,175.
A person has to invest Rs. 5 lakhs in a post office FD. It should be frozen first for 5 years and further for 5 years after the first duration. This will extend your total duration to 15 years. This means your investment is converted into Rs 15,24,149 in the 15th year from an addition of Rs 10,24,149 as interest only. In a simple term format, FD should be extended twice to convert 5 lakhs to 15 lakhs. For this, understanding is required on few rules.
Post Office TD Interest Rates-
Like banks, in the post office, you have the option of FD for different tenures. Different interest rates apply to each tenure. The current interest rates in post office are as follows.
- One Year Account 6.9% Annual Interest
- Two Year Account 7.0% Annual Interest
- Three Year Account 7.1% Annual Interest
- Five Year Account 7.5% Annual Interest