A financial instrument is an investment instrument that offers a profitable return on an investment with a plan of 50000 fd for 5 years. In the current world of fluctuating market dynamics, a fixed deposit (FD) is a sure and safe investment instrument. The best part about it is its promise of guaranteed returns at a profitable rate of interest without compromising safety and liquidity.
As a standard rule, the rate of interest varies across different banks. It applies to all forms of FD investments, including an FD investment of INR 50,000 for 5 years. Furthermore, the age of a depositor plays a vital role in determining the returns on a fixed deposit. Due to this factor, senior citizens are likely to receive higher returns than their younger counterparts. If you choose to go for 50000 FD for 5 years, you must keep paying the lump sum for a fixed period to receive the returns. You can withdraw funds after the expiry of term maturity.
50000 FD for 5 years in SBI
The State Bank of India (SBI) allows investors to deposit INR 50,000 for 5 years. This investment scheme involves mid-term planning. It is ideal for those who wish to invest funds in a trustworthy bank under their mid-term planning. While it is free from most of the risk factors due to a moderate level of investment, it also promises profitable returns at the rate of 6.75%. By investing INR 50,000 for 5 years, one can expect to receive up to INR 21,768 as returns. And as total returns, one will get an amount of INR 71,768.
No doubt, it looks like a profitable deal on pen and paper. Still, the standard rule of investment is to compare the interest rates of different banks. This way, an investor can get to know about the bank that can provide the best return on their investment. Due to the availability of several options, an investor can choose any FD based on their convenience. Their return will depend on the rate of return for the period, which will be added to their deposit to determine the overall return.
50000 FD for 5 years post office
For several years, earning profitable returns by depositing a considerable amount of money in a post office has been a proven strategy for wealth creation. The idea of depositing INR 50000 FD for 5 years in a post office is a major step in this direction. Apart from assured return, it also guarantees safety and security as it has the support of the Government of India. By depositing INR 50000 as FD in a post office for 5 years, you can earn a return of INR 17, 500 at an interest rate of 7%. Post offices fetch returns to individuals of all age groups at the same rate of interest. As a result, both young depositors and senior citizens will earn the same returns from a post office from their fixed deposit of INR 50,000 for five years.
50000 FD for 5 years Return Calculator
If you are planning to deposit INR 50 000 as FD for 5 years in SBI, you might want to know how to calculate the return on it for a good reason. After all, knowing it will help you determine the amount of money you can get as a return on your FD. You can calculate the return on it by using an online return calculator. All you need to do is fill up all its fields with relevant data.
Interest payout on 50000 FD for 5 years
SBI offers the below-mentioned rates of interest for an FD of INR 50000 for 5 years.
- General public: 6.50% p.a.
- Senior citizens aged 60 years or above: 7.50% p.a.
These interest rates are applicable for a maximum deposit of INR 1.5 lakh. Thus, it is also relevant for an FD of 50000 for 5 years.
Rs 50000 FD for 5 years – Tax saver FD
A fixed deposit of INR 50000 for 5 years can fetch you many tax benefits. You need to keep depositing a lum-sum amount for the maturity period (which is 5 years in this case). Under the Income Tax Act’s Section 80C, you will get tax benefits while withdrawing your INR 50000 FD after 5 years. The maximum amount of tax deduction under Section 80C under the Tax saver FD scheme is INR 1.5 Lakh. The scheme is considered a tax saver FD due to this feature.
How to book Rs 50000 FD for 5 years?
The process of booking INR 50000 FD for 5 years is straightforward. There are some simple steps in it that you need to follow. Here are the steps to book your fixed deposit online in a hassle-free way.
- Go to the website of SBI online and enter your login credentials to log into your account.
- Next, navigate to the home page and look for the option ‘e-fixed deposit’ on the top menu. Click on the option when you find it.
- Now, look for the option that relates to e-TDR/e-STDR under the Income Tax Saving Scheme. After clicking on this option, you will get another option, namely ‘proceed’. Click on it to go to the next option.
- Select the account from which you want your FD amount to be debited. Thereafter, input your FD amount. Choose the ‘Senior Citizen’ option if you are 60 years old or you belong to a higher age group.
- On the next screen, choose the other details like non-cumulative (TDR) FD /cumulative (STDR), maturity period instructions, and tenure. Go through the terms and conditions before hitting the ‘Submit’ button.
- Wait for the confirmation message patiently. If you see this message on the screen, you can consider the process complete.
Documents required to book 50000 FD for 5 years
By now, you may have understood how an investment in an SBI FD of INR 50000 can benefit you. You must open an SBI FD account by furnishing a few documents to receive its benefit. Given below is a checklist of the documents you need to furnish to open an SBI account.
You can submit one of the below-mentioned documents for your identity proof.
- Passport
- Voter ID Card
- PAN Card
- Aadhar Card
- Driving License
The following documents can be used for address proof:
Utility Bill (of 3 months before the date of submission of documents)
- Cheque with Recent Bank Statement
- Driving License
- Voter ID Card
- Passport
- Aadhaar Card
Apart from these documents, you also need to submit two to four copies of your passport-sized photos. If you do not have a PAN card, you will be required to submit a filled-up Form 60 or Form 61 (whichever is applicable). For those who are 60 years old or belong to a higher group, submitting a Senior Citizen Certificate is mandatory.
The following documents are required for minors:
- The ID and address proof of their guardian
- Their birth certificate
Organizations need to furnish the following documents:
- The address proof and identity proof of authorized signatories
- Authorization document of the organizational board for opening an FD account
- Registration certificate
Final Word
Most depositors or investors trust the State Bank of India (SBI) as it is a stable and reputed bank that is owned and managed by the Government of India. An investment of INR 50000 as FD in SBI guarantees stable earnings as returns with a profitable rate of interest. It draws the attention of depositors due to these factors.
SBI provides the best returns on 50000 FD for 5 years with its lucrative rate of interest. You can utilize an online calculator to know the exact value of the return on your fixed deposit, depending on whether you are a senior citizen or a standard depositor. Besides, you can also look forward to some tax benefits under Section 80C of the Income Tax Act.
FAQs
People who are eligible for this scheme include Indian residents and joint Hindu families with a PAN (Permanent Account Number).
You can use an overdraft, current, or savings account for this purpose. However, it is necessary to ensure that the account you wish to use is active.
No, in this case, only the first depositor will be able to receive the tax benefits under Section 80C.
The maturity amount gets credited to the account from which a depositor deposits their FD.
A depositor can collect it from their home branch of SBI. This is the only procedure to collect a tax-saver account receipt as it cannot be collected online through internet banking.
