SBI FD vs Post Office FD: Know where your money will double soon...
In present times everyone thinks of doubling their income. People are turning towards investment tips. Now the most popular instrument for investment among the people is FD. FD i.e. Fixed Deposit is a scheme that is run in both post offices and banks. In this, you get guaranteed interest, and your money also remains safe. For this reason, many people consider FD as a better means of investment (SBI FD vs Post Office FD).
If you start the FD scheme in the post office, then here you get the option of FD of 1, 2, 3, and 5 years and its interest rates are also different according to the year. Whereas if you start FD in the bank, then here also you will get the option of FD of different tenures. Interest will also vary according to the period.
Now if you want to double the amount invested through FD, then you will have to invest in it for a long time. Generally, people calculate the interest rate by looking at the low and high-interest rates and finding out where it is profitable to invest, but it is not easy to calculate how long it will take for your investment to double.
Let us tell you a formula through which you can easily estimate how much time will it take for your money to double.
Know what this formula is
Let us tell you that this is the formula of 72, which is called Financial Expert's Rule of 72 and it is considered very important from the investment point of view. Through this formula, accurate calculations can be done to a great extent and it can be found out in how many days your investment will double. The calculation is also very simple. To apply for it, you just need to know about the annual interest available on any scheme. After this, you will have to divide that interest by 72. This lets you know how much time your money will double.
Know in how much time the money will double in the post office FD
If we talk about investing in Post Office FD, then you are getting 6.9% interest on one-year FD, 7% on two and three-year FD, and 7.5% on 5-year FD.. Since you want to double your money, the investment has to be made for a long time. In such a situation, the longest tenure FD is 5 years whose interest is 7.5%. 72/7.5 = 9.6 i.e. your amount will double in 9 years and 6 months. In this way, you will have to run FD for at least 10 years to double the amount.
Know when the money will double if you make FD in SBI
In State Bank (SBI FD interest rates), if you make FD for more than 2 years and less than 3 years, then you will get interest at the rate of 7%. Whereas if FD is made for more than 3 years, interest will be given at the rate of 6.5%. If it is a long-term investment then the calculation will also be done at a 6.5% interest rate only. In this case, 72/6.5 = 11.07 i.e. your amount will double in about 11 years.
Follow our Whatsapp Channel for latest update
