The finance ministry on Wednesday cut interest rates by 110 basis points for the April-June quarter, encouraging investors with interest-saving plans. However, the case was rare. Finance Minister Nirmala Sitharaman withdrew the rate cut in a tweet on Thursday morning. So, for now, investors will continue to earn old interest rates as the Scania Samradhi account is offering a yield of 7.6%, the highest among small savings plans. The Popular Public Provident Fund (PPF) allows 7.1% under the Grand Savings Plan (SCSS) and 7.4% on investments. We've put together an interesting but helpful exercise to determine which of these popular investments is raising your money the fastest.

We'll see how quickly this investment can double your investment. "Rule 72" is a formula in which we divide the "72" number by the interest rate provided by the investment tool to estimate how fast your money will grow with this particular investment. It's a great way to plan for your goals. We will see.

Let's start with a savings bank account that offers a minimum interest rate of 4%. According to Roll of 72, it will take 18 years to double your money in a bank account. This is a revelation for investors who are not serious about financial planning and leave their interest in a savings account to get a lower interest rate. While a savings account is a great place to keep a portion of your immediate emergency fund, it will hurt your money if you don't invest your money for the best.

It will take more than 14 years to double your money in a DF Bank account of about 5% (application request 72 = 72/5 = 14.4). Commonly used default income saving tool, PPF will take a little over 10 years to double your money. (72 / 7.1 = 10.14)

Similarly, under the Girls' Scania Samridhi Yojana, which operates at a revolving interest rate of 7.6%, it will take about 9.4 years to double your money. It will take 10.43 years for the Farmer Promotion Letter (KVP) to double your money at the current growth rate of 6.9%.

At 6.8%, the 5-year NSC will double its investment in 10.5 years. However, these tools do not necessarily allow you to invest in the time to double your money, this exercise gives you a better idea of ​​what these profits mean and where your investment is. Will take a kind return.

Compared to the mutual fund classes of related loans, medium to long-term mutual funds currently have an average return of 6.6%. Medium to long-term funds has a Macaulay portfolio of 4-7 years. Dynamic bond funds, which can be invested overtime at the discretion of the fund manager, have an average return of 6.8%. With the current 72-year annual return ratio, under Rule 72, these schemes will double the number of investors in about 10.7 years.

At current interest rates, fixed-income investors are better off with small savings plans rather than old-class debt mutual funds. However, it is not certain how long the government will maintain the current interest rates, as these profits are compared to public securities. It is calculated based on a default formula. Therefore, this spread is still a problem.