📈 Discover how a 15-year time deposit at 7.5% interest can turn your savings into wealth

When it comes to secure investments with guaranteed returns, Post Office Time Deposit (TD) — commonly referred to as Post Office FD — is one of the most trusted options available in India. Offering stable interest rates and tax benefits under Section 80C of the Income Tax Act, this government-backed savings scheme is not only safe but also lucrative for long-term investors.

Let’s break down how investing ₹10 lakh can fetch you more than ₹20 lakh in interest, and how your total maturity amount can cross ₹30 lakh with a smart reinvestment plan.

🔁 Tripling Your Investment: The 15-Year FD Strategy

To maximize returns from the Post Office FD scheme, opt for the 5-year time deposit, which currently offers an attractive 7.5% annual interest rate. But here's the key — don't stop after five years.

Here's how it works:

1. Start with ₹10,00,000 in a 5-year FD.

2. Reinvest the maturity amount twice — once after 5 years and again after 10 years.

3. In total, you stay invested for 15 years, reinvesting the returns each time.

💹 Earnings Breakdown Over 15 Years

✅ First 5 Years

• Principal: ₹10,00,000

• Interest (7.5%): ₹4,49,948

• Total: ₹14,49,948

✅ After 10 Years (First Extension)

• Interest on ₹14.49 lakh: ₹6,52,401

• Cumulative Total: ₹21,02,349

✅ After 15 Years (Second Extension)

• Interest on ₹21.02 lakh: ₹9,45,948

• Final Maturity Amount: ₹30,48,297

That’s ₹20,48,297 purely from interest, tripling your original investment!

📝 How to Extend Your Post Office FD

The Post Office allows easy extensions of your FD:

• 1-year FD: Extend within 6 months after maturity

• 2-year FD: Within 12 months

• 3 and 5-year FD: Extend within 18 months

You can also opt for auto-extension while opening the account. Do note that the interest rate applicable on the date of maturity will be used for the extended period.

📊 Current Interest Rates on Post Office Time Deposits (As of April 2025)