look news india
We invest money in savings schemes so that we get more returns in less time. The names of such schemes include Public Provident Fund (PPF), Recurring Deposit (RD), Fixed Deposit (FD), National Saving Certificate (NSC) etc. The specialty of these schemes is high returns and security in short time. capital. This type of scheme is backed by the government, so there is no risk of the deposit sinking. Interest rates are also decided by the government, so a fixed income is also ensured. If you invest in such a scheme at a young age, a huge sum will accumulate even before you reach your final age. This will reduce your retirement stress. At the time of retirement, you will not have to think about necessary expenses. If you want, you can easily double your investment by investing money in these schemes.
Let us know that if you have invested in PPF or fixed deposit, after how many years your deposit amount will double. Not only will your money double, but you will also get tax benefits. As far as PPF is concerned, this scheme comes under the category of EEE. That means you get tax exemption on the deposited money and its interest. You can save tax up to Rs 1.5 lakh on investment in this scheme.
When will the money in PPF double?
To know how to double money you should know about the Rule of 72. In this rule you have to divide the investment return or interest by 72. The number you get from this will be accurate and will tell you in how many years the investment amount will double. For example, if you have invested in PPF and want to know in how many years the money will double, then you will be able to know easily from Rule 72. Currently, interest on PPF is 7.1 percent. You have to divide 72 by 7.1 which will result in 10.14. That means your money in PPF will double in 10.14 years. Estimate the returns according to the amount of money you have invested.
When will the money in FD double?
For fixed deposit i.e. FD also you will have to apply rule 72. Keep in mind that maximum interest on investment will be available only when the rate is satisfactory. At present the interest on FD ranges from 2.90 percent to 7 percent. For senior citizens this rate is up to 7.50 percent. On this basis, you can know in how many years the money invested in FD will double. If we look at FDs of more than 5 years, the maximum interest rate of banks is around 6.25 percent. This rate is given on an annual basis. If Rule 72 is applied here then the money deposited in FD will double in 11 years. One thing to keep in mind about FD is that the interest rate on FD is taxable. You will have to pay tax according to the tax slab you are in.