Post Office FD: Here is the return you will get in 1,095 days by investing ₹5 lakh in this Post Office scheme..
Post Office FD ₹5 Lakh Return: If you are looking for an investment scheme that offers safety and guaranteed returns, the Post Office Time Deposit (POTD)—or Post Office FD—is an excellent option. Since it is operated by the Government of India, there is zero risk, and the interest is guaranteed.
Post Office Time Deposits offer options for various tenures. If you invest for a period of 3 years, you receive an annual interest rate of 7.10%.
Understanding the tenure in terms of days
Unlike bank FDs, which are often based on a specific number of days, Post Office FDs are structured around fixed tenures (1, 2, 3, and 5 years). However, in terms of days, they correspond as follows:
1-year deposit (365 days): 6.90% annual interest
2-year deposit (730 days): 7.00% annual interest
3-year deposit (1,095 days): 7.10% annual interest
5-year deposit (1,825 days): 7.50% annual interest
In Post Office Time Deposits, interest is compounded quarterly, but it is paid out on an annual basis.
What returns can you expect on an investment of ₹5 lakh? If you make a lump-sum investment of ₹5,00,000 in a 3-year (1,095-day) Post Office Time Deposit, your returns and maturity amount—based on an annual interest rate of 7.10% (compounded quarterly)—will be as follows:
Details Amount (in ₹)
Total Investment Amount ₹5,00,000
Annual Interest Rate 7.10% (compounded quarterly)
Investment Tenure 3 years (1,095 days)
Total Interest Earned ₹1,18,304
Total Maturity Amount ₹6,18,304
Upon completion of the 3-year tenure, you will receive your principal amount of ₹5 lakh along with a total interest of ₹1,18,304, bringing your total maturity amount to ₹6,18,304.
Key Benefits of Post Office Time Deposits
Government Security: All funds deposited are secured under a sovereign guarantee from the Government of India.
Minimum Investment: You can open an account with as little as ₹1,000. There is no upper limit on the investment amount.
Tax Benefits: If you opt for a 5-year (1,825-day) Time Deposit, you can claim a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act (Section 80C benefits are not available for 3-year deposits).
Account Transfer and Extension: You can transfer your Post Office Time Deposit (POTD) account to any post office in the country and, upon maturity, extend it for a further period.
Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
