look news india
Fixed deposit: Most people still opt for bank FDs to protect their investments. They believe that their hard-earned money should not be wasted in a risky source. Fixed deposits guarantee low but safe returns, while banks invest in FDs with the aim of getting stress-free fixed returns on maturity. Especially senior and retired investors can opt for bank FDs for safe investment in bank FDs.
If you continue to invest in bank FDs, you can double your capital. Bank FDs usually give 6 to 7 percent interest. But you can get attractive returns on your investment by investing in FDs of different tenures.
Types of Bank FD:
Interest rates on short-term fixed deposits are low, while long-term FDs can fetch higher interest. Apart from this, many banks are offering the option of FDs with a maximum maturity period of 10 years. In which your capital can grow up to 100 percent due to compound interest. Interest ranging from 7.18 per cent to 8 per cent is given on these long-term FDs.
How will the capital be doubled?
Many banks offer 7.5 percent interest to senior citizens on 10-year FDs. In which if the investor has invested 1 lakh, then at the end of 10 years the value of his investment will be Rs. 2.06 lakh. On the other hand, if a common citizen spends Rs. 1 lakh and invests at the rate of 7%, at the end of 10 years, a total of Rs. 1.96 lakh will be available. Even if the rate of 6.5 percent is applicable on bank FDs, the investor will get a fund of Rs. 1 lakh on investing almost double the amount. Rs. 1.87 lakh will be available.
