Fixed Deposit: For some time now, very good interest has been being received on fixed deposits. In such a situation, you can double the amount through FD in a few years. Know here the formula through which you can understand in how much time the money invested in FD or any other scheme will double.
Fixed Deposit: In today’s time, there are many investment options available, but still a large section of people still rely on fixed deposits. The reason for this is that in fixed deposits, the investor is confident that his money will be safe and he will get guaranteed interest. For some time now, very good interest has been being received on fixed deposits. In such a situation, you can double the amount through FD in a few years. Know here the method through which you can easily understand how much time will it take for the money you invest in FD or any other scheme to double.
Know Rule of 72
Rule of 72 is a formula which most experts consider quite accurate from investment point of view. With the help of this formula, you can easily know in how many days your invested amount will double. To apply this formula, you should know about the interest available on the scheme for which you want to calculate. By dividing that interest by 72, you will know which scheme will double your investment in how many years.
Understand with example
Suppose you want to invest Rs 5 lakh in post office. You made this investment for 5 years. You are getting 7.5 percent interest on 5 year FD. You want to know in how many years your investment will double. In such a situation, apply the formula and divide 72 by 7.5. 72/7.5 = 9.6 i.e. your money will double in 9 years and 6 months. Since there is no FD in the post office directly for 10 years or for 9, 9 years and six months. In such a situation, first get the FD fixed for 5 years, after that get it fixed again for 5 years. In this way, your amount will more than double in the total tenure of 10 years. If you invest Rs 5 lakh, then in 10 years tenure this amount will become Rs 10,51,175 at the rate of 7.5 percent.
It will be easier to choose a better scheme
On the basis of this formula, you can easily calculate not only FD but also any other scheme and find out which scheme will double your money in how many years. By using this formula, you can compare all the schemes and choose the better scheme for yourself. In most cases this rule gives almost correct figures. However, there may be a slight difference in the result.
