Fixed Deposits (FDs) with State bank of india (SBI) remain one of the most trusted investment options in India. They offer guaranteed returns and are suitable for conservative investors. If you’re wondering how to earn a fixed interest of ₹86,012 in 2.5 years, this article breaks it down step by step.
1. Understanding sbi Fixed Deposit Rates
SBI offers different FD rates depending on:
Tenure of the FD (short-term vs long-term)
Deposit amount (retail vs bulk deposits)
Type of FD (regular, tax-saving, cumulative, non-cumulative)
Example Interest Rates (Illustrative):
2 years to 3 years: 6.50% to 6.75% per annum for general citizens
Senior citizens: Higher by 0.50% per annum
2. Choosing the FD Type
There are two main types of sbi FDs:
A. Cumulative FD
Interest is compounded periodically (quarterly) and paid at maturity along with principal.
Ideal if you don’t want monthly payouts and want maximum maturity value.
B. Non-Cumulative FD
Interest is paid monthly, quarterly, or annually.
Suitable for those who want regular income from interest.
For earning ₹86,012 in 2.5 years, a cumulative FD is the best choice because the interest compounds and grows the total maturity amount.
3. Calculating the FD Amount for ₹86,012 Interest
The FD maturity formula:
M=P×(1+rn)n×tM = P \times \left(1 + \frac{r}{n}\right)^{n \times t}M=P×(1+nr)n×t
Where:
MMM = maturity amount
PPP = principal investment
rrr = annual interest rate (in decimal)
nnn = number of compounding periods per year (quarterly = 4)
ttt = tenure in years
Step Example:
Tenure: 2.5 years
Interest rate: 6.75% per annum (quarterly compounding)
Principal: Calculate the principal needed so that interest = ₹86,012
By solving the formula, investors can determine the exact deposit required to earn ₹86,012 in interest.
4. sbi FD Features to Consider
Safety: Guaranteed returns, backed by the government
Flexible Tenure: 7 days to 10 years
Loan Facility: sbi offers loans against FD if funds are needed before maturity
Senior Citizen Benefit: Higher interest rates for those above 60
5. How to Open an sbi FD
Visit your nearest sbi branch or the SBI online portal.
Choose FD type: Cumulative or Non-Cumulative.
Select tenure (2.5 years) and deposit amount.
Submit necessary documents (ID proof, PAN, and account details).
Complete payment via cash, cheque, or online transfer.
6. Conclusion
By investing in a cumulative sbi FD for 2.5 years at the prevailing interest rate (around 6.75%), you can earn a fixed interest of ₹86,012 on a suitable principal. FDs remain a safe, low-risk option for investors looking for guaranteed returns and financial planning for medium-term goals.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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