SBI FD Calculator

Why SBI FD Calculator?

SBI FDs are a highly favored investment choice because they offer low risk, flexible investment amounts and tenures, and guaranteed returns. You can also get income tax benefits of up to ₹1.5 Lakh by investing in a 5-year tax-saver Fixed Deposit (FD) under Section 80C.

The State Bank of India offers higher FD interest rates than its counterparts, making it a popular choice among investors. The FDs at SBI offer a wide tenor range from 7 days to up to 10 years, with interest rates varying from 3.30% to 6.70% (senior citizens receive an additional 0.5%). The SBI FD calculator is highly useful for accurately calculating returns on your FD investments in no time, helping you make investment decisions on FD as per your ideal tenor and interest rate.

How does the SBI FD Calculator Work?

The FD calculator takes five variables into account to project the probable maturity amount of your FD investments.

Note: The value of 'n' is '1' if the interest is compounded annually, '2' if compounded half-yearly, '4' if compounded quarterly, and '12' if compounded monthly.

Understanding FD Returns Calculation with Example

Let's say you decide to invest money in an FD and earn interest on it. You decide to invest ₹50,000 for 6 years at 6.5% annual interest compounded yearly. What will your Fixed Deposit Returns be?

Investment amount (P) = ₹50,000

Applicable FD Interest Rate (r) = 6.5%

Number of times interest is compounded (n) = 1

FD Tenure (t) = 6 years

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

Hence, A = 50,000 (1 + 6.5%/1) ^ 1*6.

After solving the above equation, we get the approximate FD maturity amount to be ₹73,000 at the end of 6 years. Hence, we come to our conclusion that:

Total Investment: ₹50 K

Interest Earned: ₹23 K

Maturity Amount: ₹73 K

How to Use the SBI FD Calculator

The FD calculator is a handy tool that helps you quickly estimate your FD's maturity value and the interest you'll earn. Just follow these easy steps:

Step 1:

Open the FD calculator on an authorised insurance platform.

Step 2:

Enter the following information:

• Investment amount

• Rate of Interest (Yearly)

• Time Period

Step 4:

Review the total investment amount, Interest earned and the maturity value.

Step 5:

Adjust the values to explore different possibilities and choose the combination that suits your long-term financial plan.

Advantages of the Policybazaar FD Calculator

The advantages offered by the Policybazaar FD Calculator are:

1. Estimate Maturity Amount –

   The Policybazaar fixed deposit calculator helps you to get an idea of the maturity amount you will get at the end of your FD tenure. This helps you to choose the FD scheme that provides a maturity amount closest to your expectations.

2. Determine FD Tenure –

   The Policybazaar FD calculator can help you ascertain which FD tenure is most beneficial. You can use the FD interest rates calculator to determine which FD tenure will help you earn the maximum returns.

3. Plan Investment Goals –

   It also helps you to easily plan your short-term as well as long-term investment goals. You can check the maturity amount for various tenures using the Policybazaar FD calculator and decide which scheme will help you achieve your investment goals.

4. Greater Accuracy -

   The results of a Policybazaar fixed deposit calculator are more accurate than manual calculations. Thus, it helps you to get a more accurate idea of the maturity amount so that you can invest in an FD accordingly.

5. Saves Time –

   You can save a lot of time by using an Policybazaar FD calculator, as you don’t have to visit the Bank to find out the maturity amount.

Conclusion

An SBI FD calculator helps you calculate your potential FD investment returns at the time of maturity. It is an investment planning companion that takes the load of long, complicated calculations off your shoulders and gives you rigorous results so that you can compare different FD plans by inputting various scenarios and select a plan that suits your investment needs. The SBI FD calculator is your first step towards achieving your financial objectives.