The safest investment for your hard-earned money. Calculate precise returns with quarterly compounding logic used by Indian banks.
Most Indian banks (SBI, HDFC, ICICI) compound interest quarterly. This means you earn interest on your interest every 3 months.
Interest earned on FDs is fully taxable as per your income tax slab. Banks deduct 10% TDS if interest exceeds ₹40,000/year (₹50,000 for seniors).
SIP (Systematic Investment Plan) allows investing a fixed amount regularly in mutual funds. It averages purchase cost through rupee-cost averaging and benefits from compounding over long periods.
Historically, equity mutual funds have delivered 12-15% CAGR over 10+ years. However, returns vary by fund type, market conditions, and investment horizon. Past performance doesn't guarantee future returns.
SIP is better for regular income earners and reduces market timing risk. Lump sum works when you have surplus funds and markets are undervalued. Combining both strategies often yields optimal results.
PPF offers tax-free returns (7.1% currently), 15-year lock-in, and EEE tax status. FD offers flexible tenure, immediate liquidity, but taxable interest (6-7.5%). PPF suits long-term tax-free savings; FD suits short-term liquidity needs.