SBI FD or KVP: If you want to invest a lump sum amount for a long time in a place where you get maximum profit, then you have the option of bank FD, as well as some options of post office schemes. In the bank, you will get options of FD up to 10 years. At the same time, Kisan Vikas Patra in the post office is such a deposit scheme that can compete with 10-year FD. If you want to invest money for 10 years, then which option among SBI FD or KVP will prove to be better profitable for you? See the calculation here for ₹ 5,00,000.
How much return in SBI
If you invest ₹5,00,000 in State Bank FD for 10 years, then you will be given 6.5 percent interest on 10-year FD. At the rate of 6.5 percent, you will get Rs 4,52,779 as interest in 10 years. In this way, the total maturity amount will be Rs 9,52,779.
Senior citizens get higher interest
In State Bank, senior citizens are being given 1% more interest on 10-year FD. That means senior citizens are getting interest at the rate of 7.50%. In this case, they will get Rs 5,51,175 as interest in 10 years. At the same time, they will get Rs 10,51,175 on maturity. This amount is more than double.
How much profit in KVP
Kisan Vikas Patra guarantees doubling of the amount in 115 months i.e. 9 years, 7 months. Currently, KVP is giving interest at the rate of 7.5%. In such a situation, if you invest money in it, then after 9 years, 7 months, you will get Rs 10,00,000 as maturity amount.
Also Read- Bank FD Interest Rates Changed: PNB, Punjab & Sind and Bank of Baroda have implemented new FD interest rates, check here
Tax Benefits
If we talk about tax benefits, then FDs with tenure of 5 years or more get tax benefits under 80C. In such a situation, you will get the benefit of 80C in SBI FD. But there is no tax benefit available in Post Office KVP.
Which is the better deal
If we look at the calculations of both, if common people invest in SBI FD, they will get less profit even after depositing the amount for 10 years, whereas in KVP they will get better interest and the amount will be guaranteed to double, that too in less than 10 years. But the elderly are being given interest at the rate of 7.5 percent in both SBI FD and KVP. In such a situation, they can choose any option as per their wish. In KVP, they will get Rs 10 lakh in 9 years, 7 months. On the other hand, if they can invest the amount for the entire 10 years, then they can choose the option of SBI. There they will get Rs 10,51,175 in 10 years. In such a situation, there will be a benefit of more than 51,000 in this as compared to KVP.
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