The country’s largest bank, State Bank of India (SBI), has recently cut the interest rates of fixed deposits i.e. FD. In such a situation, if you are planning to get an FD, then before that you must know about the interest rates of the National Savings Time Deposit Account of the post office. Currently, up to 7.5% interest is being given in this scheme. We are telling you about the interest rate of SBI Fixed Deposit and Time Deposit Account. So that you can invest in the right place according to you. National Savings Time Deposit Account is getting up to 7.5% interest. In how much time will the money double? What is the Rule of 72?
This special rule of finance is the Rule of 72. Experts consider it to be the most accurate rule, which decides how long your investment will double. You can understand it like this that if you have selected a special scheme of the bank, where you get 8% interest annually. In such a situation, 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. You get the benefit of tax exemption on investing for 5 years.
You can avail the benefit of tax exemption under section 80C of Income Tax Act 1961 on investing in Time Deposit Scheme and FD for 5 years. Under this, you can avail the benefit of income tax exemption on investment up to Rs. 1.50 lakh. That is, this income is deducted from your total annual income. However, you will get this benefit only when you file ITR under the old income tax regime.
