With the Post Office Special Scheme, you can invest Rs. 500000 and receive Rs. 15,00,000 when it matures.

Every parent believes that they will provide the greatest life possible for their newborn and will not allow him to struggle. As a result, as soon as the child is born, parents begin various forms of financial preparation. While some people contribute a big sum cash to cover the child’s future requirements, others begin investing in plans like PPF and Sukanya in the child’s name.

Invest in a Post Office Term Deposit, commonly known as a Post Office FD, if you also wish to make a lump sum investment. Post office 5-year FDs offer higher interest rates than banks. If you choose, you can increase the sum more than three times using this scheme; for example, if you invest ₹5,00,000, you can increase it to more than ₹15,00,000. Understand how this will operate.

You must first spend ₹5,00,000 in a post office FD for five years in order to convert 5 lakhs into 15 lakhs. On a five-year FD, the post office is offering interest at 7.5 percent. In this case, the maturity amount after five years, if computed using the current interest rate, would be Rs 7,24,974. This amount can be fixed for the next five years, but you are not required to withdraw it. In this manner, you will earn Rs 5,51,175 in interest on Rs 5 lakhs in ten years, making your total money Rs 10,51,175. This is more than twice as much.

However, in order for your money to be deposited for a total of 15 years, you must fix this amount twice for a total of 5 years. You would receive Rs 10,24,149 in interest on your investment of Rs 5 lakhs alone when it matures in the 15th year. In this manner, you will receive a total of Rs 15,24,149 by adding your 5 lakhs and 10,24,149 rupees. Typically, a child’s financial needs only rise during adolescence. You might easily invest these 15 lakh rupees in his future in such a scenario.

You must extend the post office FD twice in order to add the fifteen lakhs. You should be aware of the rules that apply to this. Post Office one-year FDs can be extended within six months of the maturity date, whereas two-year FDs must be extended within twelve months. In contrast, the post office must be notified within 18 months of the maturity period for extensions of 3 and 5 year FD. In addition, you have the option to request an account extension at the time of account opening, following maturity. The extended period will be subject to the interest rate that was in effect on the day of maturity for the corresponding TD account.