FDs are risk-free investments since they are not market-linked. They are among the most popular investment portfolios over mutual funds, stocks, and even life insurance. You can also claim income tax benefits of up to Rs. 1.5 Lakh under Section 80C when investing in a 5-year tax-saver FD.
The rate of interest offered on fixed deposits by the State Bank of India (SBI) is one of the highest compared to other banks. You can use the SBI FD calculator to calculate your returns to make the most suitable investment decision.
Fixed deposits come with a variable rate of interest, which depends on the tenure. The interest rates increase when you opt for a longer lock-in period.
SBI offers FDs with tenures ranging from 7 days to up to 10 years with the rate of interest ranging from 2.90% to 5.10%. Senior citizens also receive an additional 0.5% interest over the prevailing rate.
Hence, it is imperative to use an SBI FD interest rates calculator to determine your returns accordingly.
Some of the benefits of using this calculator –
Also Read, SBI Bank FD Interest Rates
The SBI bank FD calculator uses the following formula to calculate fixed deposit returns –
A = P (1 + r/n) ^ n*t
In the above formula –
Let’s take an example to understand the formula better. You want to invest Rs. 10,000 for 5 years at 7% annual interest compounded yearly.
Hence, A = 10,000 (1 + 7%/1) ^ 1*5.
As per the above calculation, your invested amount will become Rs. 14,148 at the end of 5 years.
To use our online FD calculator SBI, just enter the value of the initial investment amount, rate of interest and tenure. The total amount that you would gain from your SBI fixed deposit upon maturity, will be reflected within seconds.
There are several advantages to using Groww’s SBI bank fixed deposit calculator, some of which are mentioned below –
Investing in a mix of short-term and long-term fixed deposits is one of the ideal ways to expand your savings. You can earn more returns with a short-term FD compared to a savings account. Similarly, your long-term investment provides returns that can benefit you in case of future expenses, like a wedding.
Groww’s online SBI FD calculator specifically helps you invest your funds accordingly and enjoy the highest possible returns from them.
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