Post office schemes are considered secured saving instruments as they are backed by Government of India (GoI). Through India Post, GoI offers slew of schemes that given attractive return on completely risk-free investment. Kisan Vikas Patra, 5 Year Recurring Deposit Scheme, National Savings Certificate, Public Provident Fund (PPF), Sukanya Samriddhi Yojana, etc. are some of the most prominent post office saving schemes that delivers better yield at zero risk. So, if someone is looking to invest in risk-free investment option, he or she should look at these post office savings instrument to get its money doubled at highest possible interest rates.
Speaking on how to calculate the time an investment instrument would take in doubling one’s money Manikaran Singhal, Founder at goodmoneying.com said, “An investor should use Formula 72 to calculate how much time it would take to double its money. The simplest way is to divide 72 by the annual interest rate offered by the investment plan. The outcome will be the time that plan will take in doubling one’s investment.”
Using this Formula 72 here is the list of post office schemes and the time it would take to double one’s money:
1] Senior Citizen Savings Scheme: In this investment scheme, post office is offering 7.4 per cent quarterly interest. Assuming this interest rate remains same for the entire investment period, the Formula 72 says that one’s money will get doubled in around 9.72 yrs or 116 months. It should be noted that the interest paid in this scheme is on quarterly basis. While calculating the time it would take to double an investor’s money, the interest has been assumed annually. The scheme has a maturity period of 5 years. So, to get one’s money doubled, one will have to keep the money in this scheme for next five years after maturity.
2] Public Provident Fund (PPF): This is also one of the post office schemes where one gets higher interest rate on quarterly basis. Assuming the same interest rate for entire investment period, one’s one time deposited money will get doubled in near 10.14 yrs or 122 months. The investor should keep in mind that PPF interest rate is announced on quarterly basis and it may change from one quarter to another quarter.
3] Sukanya Samriddhi Yojana (SSY): In this scheme, one will get 7.6 per cent quarterly interest rate. Assuming the same interest rate for entire period then an investor’s one time deposited money will get doubled in approximately 9.47 yrs or 113 months. For further information to the readers, SSY interest rate is paid on quarterly basis and it can change from one quarter to another — depending upon the GoI announcement.
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