SBI FD vs Gold: Which investment offered higher returns on Rs 2,00,000 over 20 years?
Explore the comparison between gold and SBI FD investments for Rs 2,00,000 over 20 years. Discover which option offered better returns for your long-term financial goals. Let's see the returns on Rs 2,00,000 invested in both gold and an SBI 5-year FD over the past 20 years.
Both SBI Fixed Deposit (FD) and gold offered safety and steady returns, but their long-term growth potential differs. Gold has historically performed well during inflationary periods, while SBI FDs provide guaranteed returns with minimal risk. In this article, we’ll see the returns of gold vs SBI FD over two decades to help you choose the best investment strategy.
Why Choose Gold as an Investment?
- Evergreen Investment: Gold is a timeless investment in India, favored for its ability to retain value over time.
- Safe Haven During Market Fluctuations: When stock markets drop, investors flock to gold as it’s considered a safer investment option.
- Hedge Against Inflation: Gold is seen as a hedge against inflation, making it an attractive choice during times of economic uncertainty.
- Rising International Prices: With recent global trends, including potential interest rate drops, gold prices have surged, making it a lucrative asset.
What is an SBI Fixed Deposit (FD)?
- Low-Risk Investment: SBI Fixed Deposits are a reliable investment for those who prefer safety and guaranteed returns.
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Fixed Returns: FD investors receive a fixed interest rate over a specified period, which ensures consistent growth of their funds.
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Ideal for Senior Citizens: FDs are popular with senior citizens seeking a low-risk investment that provides steady monthly income.
Fixed Returns: FD investors receive a fixed interest rate over a specified period, which ensures consistent growth of their funds.
Ideal for Senior Citizens: FDs are popular with senior citizens seeking a low-risk investment that provides steady monthly income.
SBI Fixed Deposit Interest Rates Over the Past 20 Years
Average FD Rate
Gold Historical Rates from 2004 to 2024
Comparison: Returns on Rs 2,00,000 Investment in Gold vs SBI FD
Current Value of Rs 2,00,000 Invested in an SBI 5-Year FD (2004-2024)
Extra Returns from Gold vs SBI Fixed Deposit (FD)
Why gold outperforms SBI fixed deposits in the long run
- Higher Long-Term Growth: Gold has delivered far superior returns compared to FDs over a 20-year period.
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Protection Against Inflation: Gold’s value appreciates more significantly during inflationary periods.
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Low Interest Rates on FDs: Although FDs provide safety, their growth is often limited due to lower interest rates.
Protection Against Inflation: Gold’s value appreciates more significantly during inflationary periods.
Low Interest Rates on FDs: Although FDs provide safety, their growth is often limited due to lower interest rates.