Much to the joy of investors who want to make their money grow by leaps and bounds, SBI FD interest rate has been fixed at a high 7.5%. This is for a tenure of 5 years. However, do note that this high State Bank of India interest rate and tenure is available to senior citizens and not to the general public. Banks are increasingly being encouraged to set their own interest rates and they may well start competing with rivals much more in order to draw investor attention.
Are bank fixed deposits safe?
The notable part about the SBI fixed deposits is that they are considered as a safe investment option, virtually guaranteed by the bank. Therefore, if SBI FD interest rate is 7.5%, then you will get your money back with exactly that amount. This is very much in contrast with stock market investments, where investors will find their money growing and sometimes actually retreating into losses. Just a week or so ago, there was this huge market crash that wiped out lakhs of crores worth of investor money. Of course, stock markets can provide returns that can even go into double digits. So, due care is necessary for investors while they are deciding where to invest.
SBI FD interest rate
Coming back to the SBI FD interest rate of 7.5% and how it can turn an investor’s Rs 5 lakh into over Rs 7.2 lakh. Let us assume that a senior citizen has invested Rs 500000 in the SBI FD with a tenure of 5 years.
When the SBI FD calculator does the number crunching, it reveals that the investor will get a princely sum of Rs 7,24,974 on maturity. On his money, the investor earned a huge return of Rs 224974! Yes, without doing anything at all except opening this SBI FD, the investor managed to earn a mammoth over Rs 2.2 lakh as profit.
FD tip: Investors should understand that leaving their money in savings bank account is not a good decision. Ideally, it should be invested.
Note: The sums mentioned here are estimations and the actual amounts will be mentioned in the bank FD receipt.
SBI FD interest rate is at 7.5% currently, and it can help turn your Rs 500000 into over Rs 720,000. Check calculation by SBI FD calculator. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
