SBI FD Calculator

The State Bank of India (SBI), headquartered in Mumbai, is the largest Indian multinational public sector bank. It controls over a quarter of the market and serves over 48 crore consumers through its 22,405+ branches spread across the country. Furthermore, this bank has a long 200-year legacy, making it one of India's most reputable banking and financial services firms.

The SBI FD calculator serves as a valuable resource for investors seeking clarity on the growth of their savings over time. This tool is especially beneficial for those who wish to plan their finances, set financial goals, and ascertain the ideal tenure and investment amount for their FDs.

Let us dive deeper into this here to clearly understand what an FD calculator is and how the SBI FD calculator works.

How to Use SBI FD Calculator?

Using the simple steps below, you can use the SBI fixed deposit calculator with Stable Money.

Step 1: Enter the Principal Amount

First, use the slider of the ‘Total Investment’ option to set the principal amount according to the investment you want to make for your fixed deposit.

Step 2: Enter the Rate of Interest

Under the ‘Rate of Interest’ header, you can change the FD interest rate as applicable or use the slider to set it to your desired rate. You should enter the interest rate as applicable on the day of deposit. 

Step 3: Input the Tenure

You get the option to change the tenure of your FD under the ‘Time Period’ tab. Here, you can directly input the number of years you want to invest your money or drag the slider to the desired tenure.

You will get the maturity and interest values (rounded to the nearest rupee) as soon as you complete these steps. However, you must note that the actual value of your deposit after maturity will be printed on the FDR (Fixed Deposit Receipt).

How Does an FD Calculator Work?

Before investing in an FD, it is always important to check your returns so that you have an idea about the returns on your investment. Using the SBI FD calculator is simple as you do not have to manually calculate it, which can be time-consuming.

There are two methods to calculate your fixed deposit's interest and maturity value. They are simple interest and compound interest methods. Let us understand how both methods work.

Formula to Calculate HDFC FD Returns

1. Simple Interest

This method calculates the interest on the principal amount throughout the total tenure of FD. To calculate simple interest, the following formula is used:

Simple Interest = (P * R * T) / 100

Here,

• P = Principal amount

• R = Rate of interest

• T = Tenure of fixed deposit

Let us look at an example to get a clear understanding of how this formula works.

Suppose you invest in a State Bank of India fixed deposit scheme with an amount of ₹50,000 for a tenure of 3 years. The interest applicable in this scheme is 7.00%. Hence, by using the formula, your interest and maturity value are:

• P = ₹50,000

• R = 7.00%

• T = 3 years

Simple Interest = (P * R * T) / 100

                          = (₹50,000 * 7 * 3) / 100

                          = ₹10,500

Therefore, the maturity value is = ₹50,000 + ₹10,500 = ₹60,500

2. Compound Interest

Compound Interest is a way of computing interest not only on the initial principal amount but also on the interest accumulated over time. To put it another way, it's interest earned on interest. This approach can result in a large growth of the amount invested over time, particularly for longer investment periods.

The formula to calculate interest and maturity value using the compound method is:

A = P (1+r/n) ^ (n * t)

Here,

• A = Maturity Value of the deposit

• P = Principal amount

• r = Rate of interest

• t = Tenure of fixed deposit.

• n = Number of compounding in a year

Here is an example to understand how this formula works.

Let’s say you invest ₹20,000 in a State Bank of India fixed deposit scheme for over 3 years. In this scheme, the interest rate is 7.00%. By applying the formula, your interest and maturity value will be:

• P = ₹20,000

• r = 7.00%

• t = 3 years

• n = 4 (once in every quarter)

Maturity Value = ₹20,000 (1+0.07/4) ^ (4*3)

                         = ₹24,628.79

So, your interest in the matured value is -

Interest = Maturity value - Principal amount

             = ₹24,628.79 - ₹20,000

             = ₹4,628.79

Advantages of Using the SBI FD Calculator

Using the SBI fixed deposit calculator is beneficial to you in several ways. Below is a list of advantages of using the calculator:

• The SBI FD Calculator provides accurate estimates of maturity amounts, enabling individuals to plan their finances effectively.

• Calculating FD returns manually can be time-consuming and prone to errors. The online FD calculator simplifies the process and provides instant results within a few seconds without any error.

• Investors can use the calculator to compare different FD schemes, tenure options, and interest rates, allowing them to make informed investment decisions.

• Investors can use the calculator to align their FD investments with specific financial goals, such as buying a house, funding education, or planning for retirement.

• The SBI FD Calculator is designed with a user-friendly interface requiring no specialised financial knowledge. It is readily available on the bank’s website and can be used at any time throughout the day.

• The calculator allows users to experiment with various investment amounts, interest rates, and tenures to find the most suitable FD plan.

Overall, the SBI FD calculator is an important tool that enables you to make informed financial decisions and plan your future monetary goals by simply following a few steps. The calculator offers accurate answers about the interest and maturity value, thus saving you precious time.

Whether you are a novice or an experienced investor, using this calculator is easy and beneficial to get error-free results.