Post Office Scheme Calculator: Invest Rs 5 Lakh, Get Rs 10 Lakh In Return!

Among the various post office schemes, the Post Office Time Deposit (TD) scheme is particularly noteworthy. It functions much like a fixed deposit (FD), where you deposit a sum of money and earn interest on it. This scheme is especially suitable for those who prefer low-risk investment options that provide reliable returns.

The Post Office TD scheme allows you to choose from 1, 2, 3, or 5-year terms. Interest is calculated quarterly but paid annually. Of these, the 5-year plan is the most popular, as it not only offers higher returns but also qualifies for income tax deduction under Section 80C of the Income Tax Act.

The current interest rates offered under the Post Office Time Deposit scheme are quite attractive. For a 1-year deposit, the interest rate stands at 6.9%, while a 2-year deposit earns 7.0%. A 3-year deposit yields 7.1%, and the highest return is offered on the 5-year plan, which provides an interest rate of 7.5% per annum.

The 5-year TD plan stands out due to the benefit of compound interest, allowing your investment to grow more rapidly over time. For instance, investing Rs 5 lakh for 5 years at 7.5% interest will grow to approximately Rs 7.21 lakh. If you reinvest that amount for another 5 years at the same rate, it will grow to around Rs 10.40 lakh. In essence, by simply reinvesting once, you can nearly double your investment in 10 years through accrued interest.

In addition to being government-guaranteed, the scheme offers better returns than standard bank savings accounts. It’s particularly advantageous for senior citizens, providing them with a reliable annual income from interest payments. Overall, the potential to grow Rs 5 lakh into Rs 10 lakh over a decade, with minimal risk and government backing, makes the Post Office Time Deposit scheme a highly appealing investment option.