Millions of investors still have faith in fixed deposits for risk-free and fixed returns amid the fluctuations in the stock market. Especially since the security of principal in government bank FD is high, it is popular among common people as well as senior citizens. If you are planning to invest Rs 5 lakh in National Bank (PNB) FD, then it is important to know the calculation of possible income over different tenures.
How much money will you get in 1 year FD?
According to the current interest rate, an annual interest of 6.25 percent can be obtained on PNB FD for 1 year. By investing Rs 5 lakh for one year, it is possible to get a total of Rs 5,31,250 at the time of maturity. That means the interest income in one year can be around Rs 31,250.
What is the return on 3 year FD?
Generally the interest rate on long term FD is slightly higher. Calculating the annual interest rate of 6.30 percent in a 3 year FD, an investment of Rs 5 lakh can reach approximately Rs 6,03,722 at the time of maturity.
The total interest income in this sector in three years will be estimated at Rs 1,03,722.
How much can be the profit on FD of 5 years?
5 year FD is especially popular with long term investors. If compound interest is added at the annual interest rate of 6.35 percent, then an FD of Rs 5 lakh can reach approximately Rs 6,80,233 at the time of maturity.
That means the total interest income in five years can be around Rs 1,80,233.
Additional benefits for senior citizens
Most banks including PNB offer additional interest facilities to senior citizens as compared to general customers. As a result, the maturity value of the same Rs 5 lakh FD for senior citizens may be higher.
Things to keep in mind before making FD
Check interest rate regularly
The bank changes the interest rate on FD from time to time. Therefore, it is important to know the latest rates before investing.
understand the issue
Income tax may be applicable on FD interest. TDS is deducted if the interest exceeds the specified limit.
Know the rules of Premature Withdrawal
If you break your FD before the maturity date, there is a possibility of penalty or less interest.
Choose interest payment method
There is an option to take interest monthly, quarterly or at the time of maturity. You should choose as per your need.
FD or other investment?
Even though FD is safe, returns may be limited at times compared to long term currency deposits. Therefore, financial experts recommend investing money through FD as well as through SIP, PPF, NPS or other investments. In this it is possible to maintain a balance between risk and return.
Fixed Deposit (FD) is still the first choice for many people when it comes to safe investment. Possible calculations of how much maturity value can be obtained by depositing Rs 5 lakh in National Bank’s (PNB) FD for a period of 1, 3 and 5 years have come out. Also, it is important to know some important things before making FD.
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