SBI 5-Year FD vs HDFC Bank 5-Year FD: What Will You Earn After 5 Years on an Investment of Rs 20,00,000?
When it comes to investing in Fixed Deposits (FDs), choosing the right bank can make a significant difference in your returns. With various options available, two of the most popular choices among Indian investors are the State Bank of India (SBI) and HDFC Bank. In this article, we’ll compare their 5-year FD offerings for an investment of Rs 20,00,000.
Current FD Interest Rates
As of 2024, SBI offers an FD interest rate of approximately 6.50% per annum for a 5-year tenure. On the other hand, HDFC Bank provides a slightly higher interest rate of around 7.00% per annum for the same duration.
Returns Calculation
Let’s break down the returns based on the current interest rates:
1. **SBI 5-Year FD**:
– Investment Amount: Rs 20,00,000
– Interest Rate: 6.50%
– Total Amount after 5 years = Principal + Interest
– Total Interest Earned = Rs 20,00,000 * 6.50% * 5 = Rs 6,50,000
– Total Amount = Rs 20,00,000 + Rs 6,50,000 = **Rs 26,50,000**
2. **HDFC Bank 5-Year FD**:
– Investment Amount: Rs 20,00,000
– Interest Rate: 7.00%
– Total Amount after 5 years = Principal + Interest
– Total Interest Earned = Rs 20,00,000 * 7.00% * 5 = Rs 7,00,000
– Total Amount = Rs 20,00,000 + Rs 7,00,000 = **Rs 27,00,000**
Conclusion
In summary, if you invest Rs 20,00,000 for 5 years, HDFC Bank will provide you with a total of Rs 27,00,000, while SBI will yield Rs 26,50,000. This makes HDFC Bank a more lucrative option for your fixed deposit investment.
Don’t forget to visit Looffers.com for more financial insights and to find the best FD rates that suit your investment needs! Happy investing!
