What returns can you expect on a ₹5 lakh Post Office FD? Calculations for 1 to 5-year tenures

Post Office Investment: The Post Office Time Deposit (TD) scheme offers secure investment backed by a government guarantee and assured returns. Let’s find out how much you will receive upon maturity if you deposit ₹5 lakh.

Post Office FD News: If you are looking to invest your savings where your capital remains safe and earns assured returns, the Post Office Time Deposit (TD) scheme could be an excellent option for you. Although this scheme functions similarly to a bank FD, it offers the added benefit of investment security backed by a government guarantee. You can choose a tenure ranging from 1 year to 5 years based on your requirements.

A key feature of the Post Office TD is that it offers different interest rates for different tenures. Therefore, it is important to know how much you could earn by depositing ₹5 lakh.

What are the interest rates for different tenures?

1-year TD: 6.9% annual interest
2-year TD: 7.0% annual interest
3-year TD: 7.1% annual interest
5-year TD: 7.5% annual interest
In this scheme, interest is compounded quarterly and paid annually.

What returns will you get on a ₹5 lakh FD?

If you wish to deposit ₹5 lakh in a Post Office TD, the returns will vary depending on the tenure.

1-year TD: If you invest ₹5 lakh, you could earn approximately ₹33,301 in interest. Consequently, the total maturity amount would be around ₹5,33,301.
3-year TD: The ₹5 lakh investment could grow to approximately ₹6,17,538. This includes interest earnings of about ₹1,17,538.
5-year TD: The total maturity amount could be around ₹7,24,974. In other words, you could earn approximately ₹2,24,974 from interest alone.

Key features of the Post Office FD:

You can start investing with as little as ₹1,000.
There is no upper limit on the investment amount.
Both single and joint accounts can be opened.
You can also avail tax-saving benefits on a 5-year Time Deposit (TD).