In how many days will the fund of 1 crore be made with FD of 5 lakhs, will you get the benefit of compounding too

Investment Tips: As soon as the name of the bank FD comes, there is a guaranteed return in the minds of most people and increasing money without risk. This is the reason that most people also invest in FD. This is especially the favorite scheme of the elderly and after retirement, most people invest money in it. But, have you ever thought that in how many days the investment made in FD can make you a millionaire.

Suppose you have invested a lump sum of Rs 5 lakh in FD, then in how many days your money will become a thick fund of Rs 1 crore. The second thing is whether the compeling on FD gets the benefit or it is given a simple interest on it. Compounding means whether the interest on investment also gets interest next time or not. As in the case of mutual funds.

Do you get interest on FD

Like a mutual fund, FD also gets a compound interest. This means that interest on FD in a year is also given interest next year. In such a situation, like a mutual fund, there is a benefit of interest on interest here. Now if you want to make a fund of Rs 1 crore on investment in FD, then how much time will it take at the rate of interest.

How long will it take on how much interest
Many smart finance banks offer interest on FDs from 8 to 9 per cent, while senior citizens get more than 9 per cent interest annually. However, the interest rate of big banks remains between 7.5 and 8 per cent, while SBI pays only 6 per cent interest on the short term period. In this way, according to each interest rate, an amount of Rs 5 lakh will have to be awaited for different periods to make a fund of 1 crore.

How much time to reach one crore