FD Calculator: If you’re considering an FD, don’t delay. This is because the interest rate on FDs may be further reduced in the coming days. This could be due to a reduction in the repo rate by the RBI. Experts say that the repo rate may be cut again in the December monetary policy meeting.
FD Calculator: Fixed deposits (FDs) are the most popular scheme for investors seeking a fixed return on their investments. Therefore, millions of investors choose to invest in FDs. Banks also offer FDs with different tenures, providing investors with a variety of options. Today, we’re providing details of a 1-year FD from the country’s largest bank, the State Bank of India (SBI). The bank offers an interest rate of 6.25% on 1-year FDs. So, let’s find out how much guaranteed interest you’ll receive upon maturity if you invest ₹100,000.
How much money will you receive if you invest ₹100,000?
If you’re a private citizen, a 1-year SBI FD will earn you an interest rate of 6.25%. Now, how much return will you receive on an investment of ₹100,000? At 6.25%, you’ll earn a guaranteed interest rate of ₹6,398 in 1 year. This way, you will receive Rs 1,06,398 on maturity. You can adjust the amount as per your convenience.
Now is the best time to invest in an FD.
Financial experts say that the current time is best for investing in an FD. This is because inflation has decreased. Consequently, the repo rate is expected to be cut again at the monetary policy meeting in December. If this happens, banks will also reduce interest rates on FDs. This will impact investor returns. To avoid this, it is wise to lock your FD now.
Keep these things in mind when investing in an FD.
Most banks offer investors the option to invest in FDs. But how can you know which FD is best for you? Ideally, you should invest in an FD with a tenure that matches your financial goals. Depending on your short- and long-term goals, you can choose the right FD tenure. You should choose FDs that offer the best interest rate to achieve your financial goals. When FD interest rates are expected to rise, you can invest in multiple FDs with different maturities to create an FD ladder and average the FD interest rate over the long term.
