Fixed deposits can be a good option to consider for your long-term savings strategy. For instance, booking a fixed deposit of ₹50,000 for 10 years can help you build a corpus for your future financial needs. Whether it is paying for your child’s education or purchasing a house, staying invested for a longer term helps you generate a sizable sum.
Read on to know the returns you can get on an FD of ₹50,000 with a 10-year tenor.
Returns on a Fixed Deposit of ₹50,000 for 10 Years
The returns you can get on a fixed deposit of ₹50,000 for 10 years vary with the interest rate that the issuer offers. Check out the following table to know the returns you can get at various interest rates:
| Fixed Deposit Amount | Interest Rates | Maturity Amount (Principal + Interest) |
| ₹50,000 | 6.50% | ₹93,856 |
| ₹50,000 | 7.00% | ₹98,357 |
| ₹50,000 | 7.50% | ₹1,03,051 |
| ₹50,000 | 8.00% | ₹1,07,946 |
| ₹50,000 | 8.50% | ₹1,13,049 |
| ₹50,000 | 9.00% | ₹1,18,368 |
| ₹50,000 | 9.50% | ₹1,23,911 |
| ₹50,000 | 10.00% | ₹1,29,687 |
Disclaimer: The above-mentioned figures are estimates, and the actual values may vary based on the FD terms.
Benefits of Investing in Fixed Deposits for a Long Term
Whether you are a conservative or an aggressive investor seeking to diversify your portfolio, fixed deposits can help. They are a popular investment option because of the benefits they offer. Here are some top advantages you need to know about:
Assured Returns
One of the most significant reasons for the popularity of fixed deposits is that they provide guaranteed returns. Unlike other investments, the interest rates associated with an FD are fixed, as they are not affected by market fluctuations.
Since you are already aware of the interest rates, you can compute them using an FD calculator.
Higher Interest Rates
If you have sufficient funds in your bank account, booking an FD can be a wise decision. This is because an FD generally provides better interest rates than that of savings accounts.
If you are looking to invest in an FD for a longer duration, you can even open a tax-saving fixed deposit. These FDs offer higher returns and come with a mandatory lock-in period of 5 years.
Ideal for Long-term Financial Goals
By investing in an FD for a longer term, say 10 years, you can easily build a corpus for your future requirements. You can book an FD to meet the following goals:
- Saving for your children’s higher education or marriage
- Building a corpus for purchasing a car or house
- Saving for retirement
Flexible Payout Options
Most issuers, whether banks or Non-banking Financial Institutions (NBFCs), allow you to choose the interest payout modes. By assessing your financial needs, you can select the right payout option. If you are looking for a stable monthly income to manage your recurring expenses, opting for monthly payouts can help.
Apart from getting the interest at maturity, you can select from the following options:
- Monthly
- Quarterly
- Semi-annually
- Annually
Tax Benefits
Another significant advantage is that you can get tax benefits by opening an FD. If you choose to book tax-saving fixed deposits, you get tax deductions under Section 80C of the Income Tax Act of 1961. You can claim a maximum deduction of up to ₹1.5 Lakhs in a year with this type of FD.
Serves as Collateral for Loan
In case your credit score is not optimal, and you need to apply for a loan or a credit card, an FD can help. By pledging your investment as collateral, you can get the line of credit easily since it reduces the risk for the lender.
In addition to that, you can also get favourable terms by pledging your FD as collateral.
Steps to Invest in a Fixed Deposit
Nowadays, opening an FD is quick and convenient. You can choose to open a fixed deposit online or offline, as per your preference. Here are the simple steps you need to follow to open it:
Online:
- Visit the official website of the financial institution or install the mobile app
- Navigate to the ‘Fixed Deposit’ option
- Choose the ‘Open FD’ option
- Fill out the online application form carefully
- Upload all the required documents
- Transfer the amount you wish to invest in the FD via the preferred mode
Offline:
- Visit the nearest branch of the chosen financial institution
- Talk to a representative and request an application form for FD
- Attach the required documents with the completed application form and submit
- Provide a cheque for the amount for which you wish to open an FD
Whether you have just started your investment journey or an experienced investor, fixed deposits can be a great way to meet your long-term financial goals. Since your initial investment remains secure, you need not worry about losing the funds. You can use an FD calculator to understand which investment terms are ideal as per your current finances and goals.