Quick Answer: How Many Years FD Will Double In Post Office?

Is Post Office FD taxable?

4) Investments made under the 5-year fixed deposit account qualifies for income tax benefits under Section 80C of the Income Tax Act.

5) At the end of the post office time deposit’s tenure, the deposited amount with interest earned on the income is taxable..

How long does it take the post office to double your money?

It can be purchased from any post office. The invested amount doubles every 124 months (10 years and 4 months).

Can I double my money in 5 years?

The Rule of 72 shows you how quickly you’ll double your money. All you have to do is divide 72 by the interest rate it’s earning. This is the number of years it will take for your money to double. … Or, if your money is earning a 5 percent interest rate, you’ll double it in 14.4 years (72 divided by 5 equals 14.4).

How can I double my money in 5 years?

To use the Rule of 72, divide the number 72 by an investment’s expected annual return. The result is the number of years it will take, roughly, to double your money.

How much money can be deposit in post office?

Single account holders can deposit a maximum of Rs one lakh while joint account holders can deposit a maximum of Rs two lakhs. One of the main features of a Post Office savings account is that there is no lock-in or maturity period.

What is the FD rate in post office?

InstrumentInterest rate (%) from 01.07.2020Max amt (Rs)Time Deposit#5.50-6.70No limitPost Office Monthly Income Scheme6.60Single: 4.50 lakhPost Office Monthly Income Scheme6.60Joint: 9 lakhKisan Vikas Patra6.90No limit6 more rows•Sep 18, 2020

What interest rate do you need to double your money in 5 years?

14.4%For example if you wanted to double an investment in 5 years, divide 72 by 5 to learn that you’ll need to earn 14.4% interest annually on your investment for 5 years: 14.4 × 5 = 72. The Rule of 72 is a simplified version of the more involved compound interest calculation.

Which FD scheme is best?

Best FD Interest Rates by Companies/NBFCsNameFixed Deposit Interest Rate (in %)TenureMahindra Finance FD Scheme (MMFSL)6.80% – 7.30%15 to 40 monthsLIC Housing Finance FD6.00% – 6.10%1 – 5 yearsBajaj Finserv FD6.90% – 7.10%12 to 60 monthsHDFC Ltd. FD6.15% – 6.25%12 to 84 months7 more rows•May 11, 2020

Does fixed deposit double in 5 years?

So, assuming the same for an investment of Rs 1 lakh in both SBI FD and Post Office Time Deposit Scheme for five years, Rs 1 lakh will become Rs 1,64,362 in SBI FD giving Rs 64,362 as interest after five years. … This means money will get almost doubled in the Post Office Time Deposit scheme.

Which is better Post Office FD or bank FD?

Post office time deposits The interest earned is fully taxable and to be added to one’s ‘Income from other sources’ as in the case of bank FD. There is complete safety as the entire amount in post office time deposit is backed by a government guarantee. Even the interest rate is higher than bank FD in most cases.

Which scheme is best in post office?

Eight post office saving schemes, including fixed deposits, and public provident fund accounts, offer interest rates between 6.6% and 8.3%.Kisan Vikas Patra (KVP) … 15 year Public Provident Fund Account (PPF) … National Savings Certificates (NSC) … Sukanya Samriddhi Accounts. … Senior Citizen Savings Scheme (SCSS)More items…•

Is Post Office FD safe?

However, post office term deposits are totally risk-free as they are backed by the government. Bank FDs are insured only up to R1 lakh. … If you are looking for a safe investment, bank FDs are suitable for you.