In a time deposit account, the interest rate ranges from 6.9% to 7.5% for a period of 1 to 5 years.
Interest Rates On Fixed Deposits: Just after the State Bank of India (SBI) and Kotak Mahindra Bank raised the interest rates on Fixed Deposits (FDs), Punjab National Bank (PNB) followed suit as the bank raised the interest on FD and Post Office Time Deposit Scheme from January 1.
Here are the details of banks and post office time deposit schemes.
Up to 7.5% Interest On Time Deposit Account
The time deposit account is a type of FD. By investing in this you can get assured returns. In a time deposit account, the interest rate ranges from 6.9% to 7.5% for a period of 1 to 5 years. You can invest a minimum of Rs 1000 in this. However, there is no limit on maximum investment.
How Much Time Will It Take For The Money To Double?
Time Deposit Account: The maximum interest available is 7.5%. According to the “Rule of 72”, it will take about 9 years and 6 months for money to double.
FD of SBI and PNB: The maximum interest available is 7%. According to the “Rule of 72”, it will take about 10 years and 3 months for the money to double in this scheme.
Kotak Mahindra Bank: The maximum interest available is 7.10%. According to “Rule of 72”, it will take about 10 years and 1 month for the money to double in this scheme.
What Is Rule Of 72?
Experts consider Rule of 72 to be the most accurate rule by which it is decided in how much time your investment will be doubled. For example, if you have selected a special scheme of the bank where you get 8% interest annually, then you will have to divide 72 by 8 under the rule of 72. 72/8 = 9 years, i.e. under this scheme your money will double in 9 years.