If you have your hard-earned savings in a regular financial institution, then you’re probably frustrated over the low interest rates. While you may think that it’ll grow slowly over time, in reality, its value is declining over time.
These traditional financial institutions not only offer lower interest rates, but their fixed deposits also lose their purchasing power. Meanwhile, the investors in the bank gain more interest, which is generated from your money. This is why residents need to find a reliable source that provides the highest FD interest rate in Delhi.
How Fixed Deposits Lose Their Value Over Time?
Many individuals believe their fixed deposit (FD) money is safe and grows over time in a traditional financial institution. However, if you consider inflation, its purchasing power is actually decreasing over time.
For example, let’s say you’ve 10,00,000 INR saved in an FD at 5% annual interest for 5 years. It’ll generate 2,76,281.56 INR interest in 5 years, including the compound interest. The total amount you’ll have will be 12,76,281.56 INR.
However, if the inflation rate is at 7%, your money will lose 2% of its value. So, considering the inflation, your money is actually worth 12,50,755.9 INR. That means your money lost 25,525.6 INR value in 5 years due to inflation.
You’ll still have 12,76,281.56 INR in your account, but its actual purchasing power will be capped at 12,50,755.9 INR due to inflation.
Samridh Bharat Cooperative Society - For Higher Interest, Better Security
If you want your money to grow faster with safety, Samridh Bharat Cooperative Thrift & Credit Society is the way to go. Samridh Bharat is a member-focused society, meaning all the benefits of this society directly go to its members. It beats inflation and compounds your hard-earned money at a fast pace for a better and secure future for your family.
For more information regarding the highest FD interest rates in Delhi, call +91 9667837771 or send a message on WhatsApp at +91 9667847771.