Investing in FD: It will be more profitable to get FD from Post Office or SBI Bank, understand the full math here

 Investing in FD: It will be more profitable to get FD from Post Office or SBI Bank, understand the full math here

The time deposit scheme is earning a maximum of 6.7% interest

SBI pays maximum 5.40% interest on FD

If you are thinking of getting a Fixed Deposit i.e. FD in State Bank of India (SBI), the largest bank in the country, you need to know about Post Office Time Deposit Scheme before making an FD. We are informing you about SBI Fixed Deposit Interest Rate and Time Deposit Scheme. So that you can invest in the right place according to you.

Post Office Time Deposit Scheme

This is a type of fixed deposit (FD). You can take advantage of fixed returns and interest payments by investing a certain amount for a fixed period. The Post Office Time Deposit Account offers interest at the rate of 5.5 to 6.7% for a period of 1 to 5 years. According to the official website of India Post, anyone investing under a 5-year fixed deposit can avail the exemption under Section 80C of the Income-tax Act, 1961. You have to invest at least Rs 1,000 in it. There is no maximum investment limit.

What is the return on investment for 5 years?

Under this scheme, if you invest Rs 1 lakh for 5 years, you will get Rs 1,39,406 after 5 years. You will get Rs 38,299 as interest at 6.7%.

In how much time will the money double?

It is getting maximum interest of 6.7%. In such a situation, according to Rule 72, if you invest money in this scheme, it will take 10 years and 7 months for the money to double.

What is the interest rate on FD in SBI?

Period interest rate

7 to 45 days 2.90%

46 to 179 days 3.90%

180 to 210 days 4.40%

211 days to less than 1 year 4.40%

More than 1 year and less than 2 years 4.90%

More than 2 years and less than 3 years 5.10%

More than 3 years and less than 5 years 5.30%

More than 5 years and less than 10 years 5.40%

What is the return on investment for 5 years?

Under this scheme, if you invest Rs 1 lakh for 5 years, you will get Rs 1,30,077 after 5 years. You will get Rs 30,077 at 6.9% interest.

How long will it take for the money to double?

The maximum interest is 5.4%. According to Rule 72૨, if you invest money in this scheme, it will take 13 years and 3 months for the money to double.

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What is Rule 72?

A special rule of finance is the Rule of 72. Experts consider it the most accurate rule, which determines how long your investment will double. You can understand it this way, if you have chosen a special scheme of the bank, where you get 8% interest annually.