Fixed Deposit (FD) investments are a popular option because they offer safety and guaranteed returns.
Most people choose FDs as they come with low risk. All banks in the country provide FDs, and even post offices offer FDs with different time periods and interest rates.
Today, we’ll explain a method to invest in post office FDs that can help you triple your money. Let’s understand how it works.
Investing in Post Office FDs
The post office gives a 7.5% interest rate on 5-year FDs. To triple your money, you need to renew the FD two more times.
Example: Turn Rs 2 Lakh into Rs 6 Lakh
If you put Rs 2 lakh into a 5-year FD at the post office, it will grow to about Rs 2,89,990 by the time it matures. If you renew it for another 5 years, the amount will increase to Rs 4,20,470.
Renewing the FD again for 5 more years will make the total Rs 6,09,370. So, your Rs 2 lakh can become around Rs 6 lakh in 15 years.
Example: Rs 2 Lakh Growing to Rs 6 Lakh
By investing Rs 2 lakh in a 5-year post office FD, you will receive Rs 2,89,990 at maturity. Renewing it for another 5 years will give you Rs 4,20,470.
Renewing the FD for a third time will raise the amount to Rs 6,09,370. In this way, your Rs 2 lakh will grow to nearly Rs 6 lakh, but it will take 15 years to reach that amount.
