New Delhi: The Post Office Fixed Deposit (POFD), also known as the Post Office Time Deposit (POTD) is one of the oldest and most preferred investment forms in India. The Indian Postal Services offers it. It is a safe investment option since the Government of India backs it. This investment is ideal for those investors who are not looking to take risks. Like the FD in the banks, one can calculate the interest amount by using a post office FD calculator.

If Rs 3 lakh is invested for a period of 1 year at the rate of interest of 6.9 per cent, then the total value will be Rs 3,21,242 and the estimated return will be Rs 21,242. It is to be noted that the Post Office is offering a 6.9 per cent to 7.5 per cent rate of interest on the time deposit scheme to its customers. So, if Rs 3 lakh is invested for a period of 1 year at the rate of interest of 7.5 per cent, then the total value will be Rs 3,23,141 and the estimated return will be Rs 23,141.

Post Office FD: Maturing amount in 2 years

It must be noted that the Post Office is offering a 7 per cent interest rate to its customers on a two-year time deposit. So, if Rs 3 lakh is invested for a period of 2 years at the rate of interest of 7 per cent, then the total value will be Rs 3,44,665 and the estimated return will be Rs 44,665.

Features of Post Office FD?

• Post Office FD is like a regular bank deposit as in both places, the money is deposited for a fixed tenure and interest rate. The higher the investment tenure, the higher will be the rate of interest.
• The scheme is best for those who do not want to take much risk as the investment not only entails low risk but also offers high capital protection as it is backed by the government. It must be noted that while the interest is paid out annually, it is calculated on a quarterly basis.