How Many Years FD will Double in Post Office

FD (Fixed Deposit) is the best investment scheme in India.

There is no risk to investing in Fixed Deposits in Post Office because post offices are directly working under the Government of India.

Post Office Fixed Deposit Scheme has the power to double the money.

Do you know How Many Years FD will Double in Post Office?

A woman is asking to post office staff How Many Years FD will Double in Post Office

Fixed Deposit takes time to Double in Post Office

According to the Department of Post’s official website, fixed deposits in post office will double the money as under-

To determine how long it will take for a fixed deposit to double, we can use the Rule of 72.

This rule approximates the time required for an investment to double, based on its interest rate.

The formula is:

Time to double= 72/Annual interest rate (in percentage)

Now, let’s calculate the time to double the money for each fixed deposit:

One-Year Fixed Deposit (6.9% interest rate):

Time to double=72/6.9= 10.43 Years

Two-Year Fixed Deposit (7.0% interest rate):

Time to double= 72/7.0 =10.29 Years

Three-Year Fixed Deposit (7.1% interest rate):

Time to double= 72/7.1= 10.14 Years

Five-Year Fixed Deposit (7.5% interest rate):

Time to double= 72/7.5= 9.6 Years

So, depending on the interest rate, the fixed deposit will take 9.6 to 10.43 years to double the money.

The shorter time to double money 9.6 years happens with the five-year fixed deposit at a 7.5% interest rate.

Calculations for Fixed Deposit takes time to Double in Post Office

Who Can Open FD in Post Office

The below-listed eligible person can open a Fixed Deposit account in any post office across India.

  • A single adult
  • Joint Account (up to 3 adults) (Joint A or Joint B)
  • A guardian on behalf of a minor
  • A guardian on behalf of a person of unsound mind
  • A minor above 10 years in his name

How much money will be deposited in FD

  • Account type for 1 year, 2 years, 3 years, 5 years.
  • The account can be opened with a minimum of Rs. 1000 and in multiples of Rs. 100. No maximum limit for investment.
  • Interest shall be payable annually.
  • No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
  • The annual interest may be credited to the savings account of the account holder.
  • The investment under 5-year FD qualifies for the benefit of section 80C of the Income Tax Act, 1961.

Is premature facility available in FD

  • No deposit shall be withdrawn before the expiry of six months from the date of deposit.
  • If FD account is closed after 6 months but before 1 year, the PO Savings Account Interest rate will be applicable.
  • If two, three, five five-year FD account is prematurely closed after 1 year, interest shall be calculated at 2% less than of FD interest rate (i.e., 1/2/3 years) for completed years, and for part period less than a year, PO Savings Interest rates will be applicable.
  • FD account can be closed prematurely by submitting a prescribed application form with the passbook at the concerned Post Office.

Can I Extend my Post Office FD Account

  • On maturity, the depositor may further extend FD account for another tenure for which the account was initially opened.
  • FD account can be extended from the date of maturity within the following prescribed period: 1 year FD = within 6 months of maturity, 2 year FD = within 12 months of maturity, 3/5 year FD = within 18 months of maturity.
  • At the time of opening the account, the depositor can submit a request for the extension of the account from the date of maturity.
  • FD account can be extended after maturity by submitting a prescribed application form at the concerned Post Office along with the passbook.
  • The interest rate applicable to the respective FD account on the day of maturity shall apply to the extended period.

Can I pledge my Post Office FD Account?

  • A TD account may be pledged or transferred as security by submitting a prescribed application form at the concerned Post Office supported by an acceptance letter from the pledgee.
  • Transfer/pledging can be made to the following authorities: The President of India/Governor of the State, RBI/Scheduled Bank/Co-operative Society/Co-operative Bank, Corporation (public/private)/Govt. Company/Local Authority, Housing finance company

FAQs

How Many Years FD will Double in Post Office?

Post Office FD will take 9.6 to 10.43 years to double the money.

What FD is best to double the money in a short time?

Post Office’s five-year fixed deposit will take 9.6 years to double the money. This is the best Fixed Deposit to double the invested money.

Is post office FD safe to invest money?

Yes. all post offices are working under the Government of India.

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