Urban Money
  • 5 K
  • 1 Cr
Years
  • 1
  • 25
%
  • 1
  • 15

Future Value

Investments To Returns Ratio:

Amount Invested

Wealth Gained

Future Value

Fixed Deposits or Term deposits are among the most popular and secure investment plans offered by SBI. The investment in the deposit is immune to market fluctuations and is risk-free in nature. They provide substantial interest rates on FDs that are locked in for a period of 7 days to 10 years, with an interest rate ranging from 2.90% to 5.10%. Senior citizens also receive additional interest of 0.5% over the prevailing rate. The depositor can avail of income-tax benefits up to 1.5 Lakhs making it a lucrative investment option among investors.

SBI FD Calculator estimates the amount accrued on maturity along with the interest you stand to gain on your investment. The SBI FD calculator will help you get clarity on the returns on your investment so that you can make an informed decision.

SBI Fixed Deposit Features

The SBI Fixed Deposit is the preferred choice for investors to park their payments. Find below the SBI fixed deposit scheme features:

  • The minimum and maximum period of the deposits are 7 days and 10 years respectively.
  • The SBI fixed deposit can be opened with a minimal deposit of Rs 1,000. There is no cap on the maximum amount which can be deposited.
  • Any deposit over 2 crores would be categorised under Bulk Deposit.
  • The interest on the deposits can be availed on a monthly, quarterly, or yearly basis in case the fixed deposit term is fixed at twelve months or above. If not, the interest shall be compounded quarterly and paid to the depositor at maturity.
  • The provision to appoint a nominee is available.
  • The SBI FD scheme grants an additional 0.25% interest to senior citizens whose deposits exceed Rs10,000. 

What is an SBI FD Calculator?

SBI FD calculator is a self-help planning tool that will assist you to quickly evaluate the total amount due upon maturity and the interest you’ll receive once the tenure ends. Once you enter in all the required details, you will receive an estimated maturity amount on your investment. The information required for this calculator is listed below:

  • The amount you wish to invest
  • Estimated rate of interest
  • The tenure for which you wish to invest

To derive the values mentioned below:

  • Maturity Value amount
  • Interest Value Amount  

How Does SBI FD Calculator Work?

The SBI FD Calculator employs the following formulae to calculate the value of maturity and interest earned:

A = P ( 1 + r/n) ^ n * t 

Where

  • A = Total Amount received on the maturity
  • P = Principal or the total amount you’ve invested in the FD
  • R = Rate of Interest
  • N= Number of times interest is compounded
  • (N= 4; Interest is compounded quarterly
  • N= 2; Interest is compounded half-yearly 
  •  N=12; Interest is compounded monthly) 
  •  t= Tenure of the Investment

Let’s take into account how the SBI FD Calculator works with an example.

Suppose you invested INR 5,00,000 in the SBI Fixed Deposit for 10 years. The interest rate is determined at 5.4% per annum, which is to be compounded quarterly. So, by applying the formulae:

A = 5,00,000 (1 + 5.4%)^ 1 * 10

The total amount to be received upon maturity = INR 8,54,909

Interest earned during the investment tenure = INR 3,54,909. 

How to use the SBI FD Calculator?

The SBI FD Calculator is a simple online tool that potential investors can use to understand the estimated interest rate up to maturity. All you have to do is enter the initial investment amount, the rate, and tenure for how long they wish to invest. Once these essential details are added, the calculator will show an expected amount upon maturity within seconds.

Fill in multiple values to calculate and compare the interests to be received with respect to the different amounts, interest rates, and tenures. It is to be noted that the interest rate by default is compounded quarterly. And the values provided by the calculator are indicative only. The accurate maturity value is imprinted on the Fixed Deposit Receipt.

To maximize the utility from the calculator. Investors can approach the calculator in the following ways: 

Investment Amount Approach 

In this approach, the investor enters the amount they’re willing to invest in the fixed deposit. This approach is suitable for investors who have clarity on the amount they’ve saved up for investing. The investor will be aware of the interest amount they’ll receive to plan their portfolio accordingly. 

Target Amount Approach 

As the name suggests, this approach concerns the target amount an investor is anticipating from their investment. So understandably, the interest amount is entered first. It is suitable for investors who want to compare the return on investment on the fixed deposits from other long-term investment options. 

Advantages of Using the SBI Fixed Deposit Calculator

There are several advantages of utilizing the calculator. Some of the advantages are mentioned below: 

Simplicity 

The SBI FD calculator is an easy-to-use tool that anyone can use. It has an easy-to-use interface and offers little room for confusion. You’re just required to mention the required details, and you can begin to explore and compare the interest amount to be received on your principal. 

Planning 

The clarity an investor obtains from the calculator can further help them plan and strategies their investment portfolio.

The SBI FD calculator gives an accurate value of the interest an investor stands to make on their investment. So that the investor can strategically allocate their savings.

Accuracy

It goes without saying that the SBI FD calculator gives a more accurate estimation of the maturity value. It would save an investor the hassle of manually calculating the amount, which can be time-consuming and prone to inaccuracies. 

SBI Fixed Deposit Interest Rates

Below are the interest rates offered to investors for multiple tenures on an SBI Fixed Deposit.

Term Deposit Interest Rate ( Below 2 Crores)

Investment Tenure  Interest Rate (General) Interest Rate (Senior Citizens)
7 Days to 45 Days  2.9%  3.40%
46 Days to 179 Days  3.90%  4.40% 
180 Days to 210 Days  4.40% 4.90%
211 Days to 1 Year   4.40% 4.90%
1 to less than 2 Years 5.10% 5.60%
2 to Less than 3 Years  5.20% 5.70%
3 to  Less than 5 Years 5.45% 5.95%
5 and up to 10 Years 5.50% 6.30% 

*It is to be noted that these interest rates are subject to change, without notice.

 Term Deposit Interest Rates (Above 2 Crores)

Investment Tenure  Interest Rate (General)  Interest Rate (Senior Citizens) 
7 Days to 45 Days  3%  3.50%
46 Days to 179 Days  3.50%  4%
180 Days to 210 Days  3.50% 4% 
211 Days to 1 Year   3.75%  4.25%
1 to less than 2 Years 4% 4.50%
2 to Less than 3 Years  4.25% 4.75%
3 to  Less than 5 Years 4.50% 5%
5 and up to 10 Years 4.50% 5% 

*It is to be noted that these interest rates are subject to change, without notice.

Frequently Asked Questions (FAQs)

What is the minimum deposit required to open an FD account?

The minimum amount to open an FD varies from bank to bank. However, you can open an SBI fixed deposit account by making a minimum deposit of Rs 1,000.

What is the highest FD rate for the State Bank of India SBI?

The Highest FD rate offered by SBI on fixed deposits to general and senior citizens is 5.40% and 6.30%, respectively. However, these rates are applied when the principal amount does not exceed 2 crores.

Is there any provision for Premature withdrawal on SBI FDs?

Yes, the depositor can withdraw the amount at any given time as per their convenience. However, it’s not advisable to withdraw the amount before maturity, as the bank levies a penalty on the depositor for early withdrawal. In such a scenario, a 0.5% penalty is charged on term deposits that are less than 5 lakhs and 1% is charged on term deposits of more than 5 Lakhs.

Can you receive monthly interest on the Fixed Deposits?

Yes, you can select the non-cumulative option to avail of the interest monthly or quarterly. In the cumulative option, the interest is compounded quarterly, which is to be paid upon maturity.  

Are FDs exempted from Tax?

Under Income Tax Act, investors are eligible for tax deductions on investments up to 1.5 Lakhs. However, the interest earned is taxable and is deductible from the source.