SBI 10-Year FD vs SIP: What will be your return on Rs 9,00,000 investment in 10 years?
SBI 10-Year FD vs SIP: SBI offers FDs (fixed deposits) with guaranteed returns, while SIPs (Systematic Investment Plans) in mutual funds provide market-linked growth potential. Read.
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Selecting the right investment is essential for achieving long-term financial growth. For depositors considering the options, SBI’s FDs (Fixed Deposits) offer guaranteed returns, while Systematic Investment Plans (SIPs) in mutual funds offer market-linked growth potential.
SBI fixed deposit interest rates
SBI offers interest rates ranging from 3.50 per cent to 7.25 per cent per annum for the general public and 4.00 per cent to 7.75 per cent per annum for senior citizens. The SBI Tax Saving Fixed Deposit comes with an interest rate of 6.50 per cent for the general public and 7.50 per cent for senior citizens for long-term investments.
SBI FD: Your return on 9 lakh investment in 10 years
- Deposited amount: Rs 9,50,000
- Estimated return: Rs 8,60,281
- Total value after 10 years: Rs 18,10,281
SBI also provides various fixed deposit options for NRIs, including NRO, NRE, RFC and FCNR (B) deposits.
What is SIP?
SIP (Systematic Investment Plan) allows depositors to contribute a fixed amount regularly to mutual funds. This act reduces market risk through rupee cost averaging and reinvests returns for wealth accumulation.
SIP: Your return on Rs 9 lakh investment in 10 years
- Monthly deposit: Rs 7,920
- Total deposited amount: Rs 9,50,400
- Estimated returns: Rs 8,23,964
- Total value after 10 years: Rs 17,74,364
FD vs SIP: What's the difference?
- Returns: FDs provide fixed, guaranteed returns, while SIP returns are higher but subject to market fluctuations.
- Risk: FDs are low-risk, making them ideal for risk-averse depositors. SIPs carry higher risk but offer the potential for better returns.
- Suitability: FDs suit investors seeking stability, while SIPs work better for those aiming for long-term growth and willing to handle market volatility.
SBI FD vs SIP: Which one should you choose?
- If you prioritise guaranteed returns and low risk, an FD is the safer option.
- If you seek higher returns and can tolerate market fluctuations, SIPs are worth considering.
- Your choice should align with your financial goals, risk appetite, and investment horizon.
(Disclaimer: This is an not investment advice. Do your own due diligence or consult an expert for financial planning)
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