It should be noted that this calculation is based on a fixed deposit interest rate of 7.5 per cent – the current interest rate offered by the India Post.
Post Office FD Calculator: Saving is very important and it is always better to start it early. While there are various ways to increase your savings, fixed deposits are considered to be the safest and therefore are quite popular. India Post offers a fixed deposit facility, also called the Post Office Time Deposit Accounts (TD).
The post office time deposit or fixed deposit is similar to bank FDs. It promises a guaranteed return to the depositor who stays invested for a fixed period.
If a person decides to invest Rs 5 lakh for 15 years without withdrawing any amount earned as a return, he can get a return of over Rs 15 lakh at the end of this tenure.
Post Office FD tenure
Investors must know that the maximum fixed deposit (FD) tenure in a post office is five years. After this period, one can either withdraw the matured amount along with the accrued interest or choose to reinvest it in a new five-year post office FD.
Considering that a person wants to continue the investment for 15 years, he can get a return of Rs 15,24,149 after the completion of this tenure.
Here we are going to explain this calculation
If you deposit Rs 5,00,000 in a Post Office scheme for 5 years, you can get an estimated return of Rs 7,24,974 with accrued interest being Rs 2,24,974.
If a person again invests this amount in a five-year FD scheme, the return at the end of the tenure will be Rs 10,51,175 with the accrued interest being Rs 3,26,201.
On investing the entire amount (10,51,175) again for five years in the Post Office FD scheme, the total amount that one can get at the end of 15 years could be Rs 15,24,149. The total interest accrued during this tenure could be Rs 4,72,974.
It should be noted that this calculation is based on a fixed deposit interest rate of 7.5 per cent – the current interest rate offered by the India Post. The final amount may vary if the government decides to change the interest rates.
