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FD Calculator: Will Your Money Double in a 10-Year FD? Here's the Calculation!
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News18•03-10-2026, 15:35
FD Calculator: Will Your Money Double in a 10-Year FD? Here's the Calculation!
- •Fixed Deposit (FD) is a popular, low-risk investment option in our country.
- •Your money can almost double in a 10-year FD if you receive an annual interest rate of around 7 to 7.2 percent.
- •The key to doubling your money lies in the compounding benefit of a cumulative FD.
- •An investment of 1 lakh rupees at a 7.18% interest rate can grow to nearly 2 lakh rupees in 10 years.
- •Choose a non-cumulative FD for regular income or a cumulative FD for long-term wealth creation like retirement or child's future.
Key Questions Answered
Yes, if you invest 1 lakh rupees in a cumulative FD for 10 years at an annual interest rate of around 7 to 7.2 percent, your money can almost double due to the compounding benefit.
In a cumulative FD, the interest is not paid out regularly; instead, it is added back to the principal amount, allowing you to earn interest on the increased amount through compounding.
A non-cumulative FD pays out interest monthly or quarterly for regular income, meaning the principal stays the same and does not grow. A cumulative FD reinvests the interest into the principal, maximizing long-term growth through compounding.
