Post Office Fixed Deposit (FD) scheme is a safe and beneficial option for Indian investors. This scheme is suitable for those who want to protect their savings and also get returns at a certain interest rate. In 2025, the post office FD is receiving 7.5% annual interest rate for a period of 5 years, making it attractive compared to other investment plans.
In this article, we will know how up to Rs 12 lakh can be availed by investing Rs 4 lakh in post office FD. Also, the major features of the plan, will discuss the advantages and reality.
Post office shortage deposit (FD) scheme observation
| aspect | Description |
| Minimum investment amount | ₹ 1,000 |
| Maximum investment amount | No limit |
| Interest rate | 7.5% per year (for 5 years) |
| Duration | 1, 2, 3 and 5 years |
| Interest payment | Calculate on annual, quarterly basis |
| Security | Guaranteed by government |
| tax benefit | Under Section 80C |
How to invest in post office FD?
Post office is very easy to invest in FD. You can do this in two ways:
Online process:
- Download India Post Mobile Banking App.
- Log in and choose to open “Post Office FD Account”.
- Fill the required details and deposit the amount.
Offline process:
- Go to the nearest post office branch.
- Fill the application form and submit the required documents.
- Deposit the amount through cash or check.
How can ₹ 4 lakhs become ₹ 12 lakh?
If you invest properly in the post office FD, it can give big returns in a long time. Let us understand it in a phased manner:
First step:
- Investment: ₹ 4,00,000
- Duration: 5 years
- Interest Rate: 7.5% per year
- Amount: After 5 years, it will increase to ₹ 5,79,979.
Second phase:
- Now put this entire amount again in FD for the next 4 years.
- This time this amount will increase to ₹ 8,40,940.
third step:
- This amount will now be re -invested for the next 5 years.
- At the end of this phase, your total amount will be ₹ 12,19,319.
Conclusion: In this way you invested only ₹ 4 lakh and in 15 years you got a return of more than ₹ 12 lakhs.
Benefits of Post Office FD
There are many advantages to invest in the post office FD scheme:
- Government guarantee: This scheme is supported by the Indian government, which keeps your capital completely safe.
- High interest rate: 7.5% interest rate is more attractive than bank FD.
- Tax Benefits: A five -year FD provides tax exemption under Section 80C.
- Flexibility: You can choose a period of 1 to 5 years according to your requirement.
- Enrollment facility: Enrollment facility is available while opening an account.
- Automatic Renewal: After maturity, the account can be automatically renewed.
Post Office FD vs Bank FD
| Feature | Post Office FD | Bank fd |
| Interest rate | 6.9% – 7.5% | 6% – 7.5% |
| Security | Guaranteed by government | DICGC up to ₹ 5 lakh |
| Duration | 1 – 5 years | 7 days – 10 years |
| tax benefit | Available (80C) | Available (80C) |
Noted things
- Senior citizens do not get the benefit of additional interest in the post office FD scheme.
- The scheme is not available for NRI.
- Premature withdrawal can be penalty.
Disclaimer: Is this claim correct?
It is claimed that the benefit of ₹ 12 lakh is possible by investing ₹ 4 lakh in the post office FD, it is not completely correct. In fact it is only based on the process of long term (15 years) and reinvestment.
Although the post office FD is a safe and reliable option, such a big return in it is possible only due to compounding and time. So use it wisely and consult your financial advisor.
