Fixed Deposits (FDs) with State bank of india (SBI) remain one of the most trusted investment options in India. They offer guaranteed returns and are suitable for conservative investors. If you’re wondering how to earn a fixed interest of ₹86,012 in 2.5 years, this article breaks it down step by step.

1. Understanding sbi Fixed Deposit Rates

SBI offers different FD rates depending on:

Tenure of the FD (short-term vs long-term)

Deposit amount (retail vs bulk deposits)

Type of FD (regular, tax-saving, cumulative, non-cumulative)

Example Interest Rates (Illustrative):

2 years to 3 years: 6.50% to 6.75% per annum for general citizens

Senior citizens: Higher by 0.50% per annum

2. Choosing the FD Type

There are two main types of sbi FDs:

A. Cumulative FD

Interest is compounded periodically (quarterly) and paid at maturity along with principal.

Ideal if you don’t want monthly payouts and want maximum maturity value.

B. Non-Cumulative FD

Interest is paid monthly, quarterly, or annually.

Suitable for those who want regular income from interest.

For earning ₹86,012 in 2.5 years, a cumulative FD is the best choice because the interest compounds and grows the total maturity amount.

3. Calculating the FD Amount for ₹86,012 Interest

The FD maturity formula:

M=P×(1+rn)n×tM = P \times \left(1 + \frac{r}{n}\right)^{n \times t}M=P×(1+nr)n×t

Where:

MMM = maturity amount

PPP = principal investment

rrr = annual interest rate (in decimal)

nnn = number of compounding periods per year (quarterly = 4)

ttt = tenure in years

Step Example:

Tenure: 2.5 years

Interest rate: 6.75% per annum (quarterly compounding)

Principal: Calculate the principal needed so that interest = ₹86,012

By solving the formula, investors can determine the exact deposit required to earn ₹86,012 in interest.

4. sbi FD Features to Consider

Safety: Guaranteed returns, backed by the government

Flexible Tenure: 7 days to 10 years

Loan Facility: sbi offers loans against FD if funds are needed before maturity

Senior Citizen Benefit: Higher interest rates for those above 60

5. How to Open an sbi FD

Visit your nearest sbi branch or the SBI online portal.

Choose FD type: Cumulative or Non-Cumulative.

Select tenure (2.5 years) and deposit amount.

Submit necessary documents (ID proof, PAN, and account details).

Complete payment via cash, cheque, or online transfer.

6. Conclusion

By investing in a cumulative sbi FD for 2.5 years at the prevailing interest rate (around 6.75%), you can earn a fixed interest of ₹86,012 on a suitable principal. FDs remain a safe, low-risk option for investors looking for guaranteed returns and financial planning for medium-term goals.

 

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