Post Office FD Calculator: Starting early is always better, and saving is crucial. Even though there are several alternatives to boost your savings, fixed deposits are considered the safest and, therefore, quite popular. The Post Office Time Deposit Accounts (TD) are the fixed deposit options available from India Post.
A fixed deposit or post office time deposit is like a bank FD. For the depositor who keeps an investment for a set duration, it guarantees a certain return.
If one chooses to deposit Rs 5 lakh for 15 years without pulling any income as a return, he will have a return of more than Rs 15 lakh at the end of this period.
Term of Post Office FD
Investors should know that the maximum fixed deposit (FD) terms for the post office are five years. One can either decide to reinvest the matured sum in a new five-year post office FD or withdraw the matured money together with the accumulated interest after this term.
After the term ends, someone wishing to keep the investment going for 15 years can obtain a return of Rs 15,24,149.
Here, we will walk over this computation
With a cumulative interest of Rs 224,974, you might obtain an expected return of Rs 724,974 if you make a Rs 500,000 post-office program for five years.
Should someone once more make this investment in a five-year FD scheme, the end of the term return will be Rs 10,51,175 with an accrued interest total of Rs 3,26,201.
If one invests the whole sum (10,51,175) once more for five years in the Post Office FD program, the total amount one might collect at the end of 15 years could be Rs 15,24,149. Over this term, the overall interest accumulated might be Rs 472,974.
It should be underlined that this computation is predicated on a fixed deposit interest rate of 7.5%—the present interest rate provided by the India Post. Should the government decide to adjust the interest rates, the total might vary as well.
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