Post office FD interest rates: After getting a job, everyone thinks of saving for their secure future and many questions arise in their mind that in which scheme to invest money in Post Office or SBI or FD. Let us know in the news below in which scheme the money will be doubled by investing.
FD i.e. Fixed Deposit is a scheme which 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 a better means of investment.
If you start the FD scheme in the post office, then there is 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.
But 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 calculate 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 in how much time your money can double.
What is the formula
This is the formula of 72, which financial experts call Rule of 72 and consider it very important from 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.
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 in how much time your money will double.
How long will it take for money to double in post office FD?
Talking about investment in post office FD, 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 will have to be made for a long time. In such a situation, the longest tenure FD is of 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.
When will the money double on making FD in SBI?
If you make FD in SBI 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 6.5% interest rate only. In this case, 72/6.5 = 11.07 i.e. your amount will double in about 11 years.
