Post Office TD : There are many investment options available these days. But people still rely on the old schemes. These are traditional investors who prefer to invest in traditional options. One reason for this is safety. People want to see their money safe. Money is also quite safe in traditional options. These options include bank FD. But you can get FD done in the bank, while an alternative to FD is TD ie Time Deposit, which is offered by the post office. The only difference between them is the name. Otherwise both the options are same. Post Office TD is one such option which can make you rich in the long run. Learn further how.
Will get the benefit of compounding
The FD of the post office is also called a time deposit. Investors will get the benefit of compounding like other options. But keep in mind that the benefit of compounding can be found only on investing for a long time. You can more than double your money if you invest in a post office time deposit for a longer period of time.
for how many years will the investment be
For your information, let us tell you that fixed investment can be made in Post Office TD for one year, two years, three years and up to five years. But you can extend this period. For example, if you have done TD for 5 years, then on completion of 5 years, you can extend it further. Your TD will be extended for the period you wish.
how much is the interest rate
At present, you will get 6.7 per cent annual interest as return on 5-year post office TD. If you invest Rs 8 lakh for 5 years, then according to the post office time deposit calculator, this amount will be Rs 11.15 after 5 years. That is, on an investment of Rs 8 lakh, you will get Rs 3.15 lakh as interest. To build a corpus above Rs 21 lakh, you need to invest for another 10 years.
Fund ready in 15 years
If you extend your TD for 5 more years, then this amount will be Rs 15.54 lakh. In this, your investment amount will remain Rs 8 lakh only, but the interest amount will increase to Rs 7.54 lakh. That means your money would have almost doubled. Similarly if you extend the period of TD for 5 more years then Rs 8 lakh will increase to Rs 21.67 lakh. You will get a return of Rs 13.67 lakh in 15 years.
Interest rate differs according to the year
This post office scheme has different interest rates for different years. For example, for one year, you will be given interest at the rate of 5.50 per cent. The interest rate on TD for two years has been kept at 5.70 percent, 5.80 percent for 3 years and 6.70 percent for 5 years TD.