Post Office FD Interest Rates: Post offices are a beacon of light, offering attractive opportunities for Recurring Deposits (RDs) and Fixed Deposits (FDs). While banks also offer these options, post offices stand out for offering attractive interest rates on fixed deposits and regular savings deposits.
The Post Office RD is currently attracting investors with a sizable interest rate of 6.7%. For those who are unable to make a large lump sum investment, the RD scheme is particularly attractive as it allows for a fixed monthly investment over a period of 5 years. As a result, at the end of the 5-year period, investors can earn an interest return of 6.7%.
However, Post Office FD is a more lucrative option for those who can afford to make a lump sum deposit. Even a 1-year Post Office FD investment generates more interest than a 5-year RD. Let’s take a closer look at an investment of Rs. 10 lakhs in Post Office FD for different tenures.
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1-Year Post Office FD:
An investment of Rs. 10 lakh in Post Office FD for one year earns an attractive interest rate of 6.9%. Thus, after one year, the investor gets Rs. 7081 as interest on his Rs. 10 lakh investment, giving a total return of Rs. 107,081.
2-Year Post Office FD:
Choose a Post Office 2-year FD with an investment of Rs. 100,000 at 7% interest. At the end of two years, the investor gets a handsome interest of Rs. 14,888 with a total return of Rs. 1,14,888.
3-Year Post Office FD:
For those looking for a slightly longer investment horizon, the Post Office 3-year FD offers an attractive interest rate of 7.1%. Investors can expect to accumulate a handsome interest of Rs. 23,508 over a period of three years, resulting in a total return of Rs. 1,23,508.
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5-Year Post Office FD:
Start a 5-year FD journey at a post office and get a high interest rate of 7.5%. Investors can earn a handsome interest return of Rs. 44,995 over 5 years, totaling Rs. 1,44,995.
In short, Post Office offers investors a diversified investment environment that caters to both those who seek the flexibility of RD and those who covet the substantial returns of FD. The key is to combine your investment objectives with the right tenure and reap the rewards through smart financial strategies.