5 answers

How can i make my money double if I invest it in a bank for a fixed deposit.

Asked Viewed 844 times

5 answers

Gail’s Answer

Updated

Don't we all! However, it won't happen if you have your money in a bank. They are paying max 2% and that is if you invest in a CD for a long amount of time. What timeframe are you looking at? If you want to keep it until you are 65 then you have a chance. If you can start saving $405 per month by age 25, an average annual return of 7% means you'll have $1 million by age 65.

If you are looking for a short term doubling of your money then you will have to play the stock market and get lucky.

Donald’s Answer

Updated

It's easy if you have an unlimited time frame! Look up the rule of 72 and you can calculate it yourself.

Sandhya’s Answer

Updated

Hi Rahul,

Some of the Fixed deposit calculator available online are : ( Reference : https://www.bankbazaar.com/fixed-deposit/fd-calculator.html ( reference : http://fd-calculator.in/result )

The Fixed Deposit interest rates and the duration of the investment should be kept in mind while making an investment .

For example :

If the current rate is 7.5% for FDs in Nationalized banks And if I invest 1,00,000 It will take about 9 years and 5 months for the principal amount to be double ( 2,00,000)

Happy Saving.

Jeremy’s Answer

Updated

Investing in a bank will take approximately 35 years to double your initial investment (see Donald's response above about the rule of 72, which is basically divide 72 by the interest rate you are receiving and that is how long it will take for your money to double assuming the rate stays the exact same and no further money is input or withdrawn). The best and safest way to invest nowadays is a mutual fund. Find no load funds with targeted retirement features. An example are Vanguard's mutual funds. Invest in a fund directly (not through a broker). Large mutual funds are typically very well managed, do not pose much risk at all, and return a solid percentage (much more than a bank). You mentioned doubling your money. Unfortunately, there is no quick fix in investing (unless you like to gamble). But, I would not recommend that to anyone. You can "win", but, more likely, you can also lose. Find one or more good funds and stay the course. You will happy with that decision 5 years from now! Hope that helps and good luck!

Prithuvi’s Answer

Updated
Rahul - It really comes down to your location/region/country. While I'm currently based out of the USA, I'm familiar with the interest rates, banks in South Asia have to offer - When it comes to fixed deposits, banks in the above region offer anywhere from 5-17%. Remember, the longer your fixed deposit is contracted for, the higher the interest rate. In addition, keep a close eye on the trends behind interest rates - While they tend to fluctuate bank to bank, and taking into consideration economic conditions, you always have the right to negotiate (i.e if the bank has increased IRs, you could potentially ask them to match it, while if there's a decrease in the IRs, you could ask them to keep them at the rate you were initially contracted for) The likelihood of you doubling your investment through a FD, is much higher than that of investing in the stock market (strictly speaking of the South Asian region). Best - P