Today, safe investment is everyone’s priority. Post office fixed deposits (FD) scheme is an option that not only protects your money, but also gives you non-risky and non-convertible returns. In this article, we will tell you how you can make a fund of up to ₹ 10 lakh with a savings of ₹ 5000 month. Also, we will explain how the post office FD scheme works and how to use it for maximum profit.
What is Post Office FD Scheme?
Post Office FD, also called Post Office Time Deposit, is a safe investment scheme supported by the Government of India. In this, investors can make fixed deposits for tenure from 1 to 5 years. The scheme comes with a saveren’s guarantee, which makes your investment completely safe.
Overview of the scheme
| Feature | Details |
| Tenure options | 1, 2, 3 and 5 years |
| Interest Rates | 6.90% to 7.50% per year |
| Minimum Deposit Amount | ₹ 1,000 |
| Interest payment | annual |
| Premature withdrawal | Permission after 6 months |
| Tax Benefits | Available under Section 80C |
How to make ₹ 10 lakh with a savings of ₹ 5000 month in Post Office FD?
The way to increase money in post office FD is very simple. If you deposit ₹ 5000 every month and continue it till long term, then you can make funds of up to ₹ 10 lakh by taking advantage of compounding interest.
Step-by-step calculation:
- First 5 years:
- Monthly deposit: ₹ 5000
- Total deposit amount: ₹ 3,00,000
- Interest (7.5%): ₹ 56,830
- Total Fund: ₹ 3,56,830
- 10 years later (Account Extension):
- Total deposit amount: ₹ 6,00,000
- Interest (7.5%): ₹ 2,54,272
- Total Fund: ₹ 8,54,272
- 15 years later (Second Extension):
- Total deposit amount: ₹ 9,00,000
- Interest (7.5%): Around ₹ 4 lakhs
- Total Fund: Around ₹ 13 Lakh
Benefits of Post Office FD Scheme
Safe investment
The post office is supported by the FD government and your money is completely safe in this.
Non-risky returns
In this, the interest rate remains stable and market fluctuations have no effect.
Tax benefits
There is a tax exemption under section 80C on 5 -year FD.
Flexible tenure
You can choose a tenure of 1 to 5 years and move it forward.
Post Office FD interest rates (2025)
| Tenure | Interest rate (%) |
| 1 year | 6.90 |
| 2 years | 7.00 |
| 3 years | 7.10 |
| 5 year | 7.50 |
Tips to make post office FD maximum beneficial
- Invest long-term: Renew your FD repeatedly to compound interest.
- Use Tax Benefits: Choose Tax Saving FD.
- Keep an eye on interest rates: Interest rates from time to time.
- Start small savings: If you cannot deposit a large amount in the beginning then start with small savings.
Other important information
Premature Withdrawal:
In the post office FD, you can withdraw your money after at least 6 months. However, doing so may reduce the interest rate.
Nomination facility:
This facility is available so that you can nominate a member of your family.
Disclaimer:
The scheme claims to increase money through compounding interest. However, in reality this may not be completely possible because interest rates may change from time to time. So before investing, read all the conditions carefully and consult a specialist.
