Everyone who invests in saving schemes is eager to know that the money they are investing in these schemes will double in how many days. If you want to easily calculate how many days your money will double in a scheme, then you must know the Rule of 72.
The central government has launched several important schemes to promote savings, in which investors get high returns. The bank has Fixed Savings (Bank FD) as well as some similar savings schemes such as Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana, Small Savings Scheme and Senior Citizens Savings Scheme.
What is Rule of 72
The central government gives a definite return on savings schemes. That is, depositors get interest on saving. Rule of 72 is a simple formula, which makes it easy to know how many days your money invested in any scheme will double. There is an extremely easy way to calculate it. You should divide the rate of interest, or interest rate, found in any scheme by 72. In how many days the fund will double, it will come out.
How to calculate
For example, suppose you have invested your money in PPF and PPF is currently giving 7.1% interest, then the return that is divided by 72 will be 10.14, ie in 10.14 years your money invested in PPF will double. . Let us tell you that the government gets interest on PPF every quarter.
Similarly, 6.8% interest is being earned on National Savings Certificate right now, so dividing by 6.8 will result in 10.58, ie in this year your money will double in this scheme. Similarly, you will be able to calculate how many days the money will double in any scheme.
Always keep in mind while investing where you will get higher returns. But remember that the higher the rate of return on investment, the higher the risk. Investing in equity yields higher returns than fixed deposits or government saving schemes, but the risk of sinking money is equally high.
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