### SBI FD Calculator

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Most people choose fixed deposits over stocks and mutual funds, considering their secured nature. FDs are government-backed; you can even claim a tax benefit if you invest in a tax-saver FD. According to Section 80C of the Income Tax Act, you can claim up to Rs.1.5 lakhs in tax benefits against FDs.

So, investing in a bank offering higher interest rates on FD can be a wise decision. As per the records, SBI offers the highest FD interest rates. If you are planning to invest in an FD, you can calculate interest easily using an SBI FD Calculator.

Fixed deposits are available with a variable rate of interest, which is directly related to the tenure. Generally, the interest rates increase when you go in for a longer lock-in period.

SBI offers FDs with tenures ranging from 7 days to up to 10 years, with the interest rate ranging from 3.50% to 6.50%. Senior citizens are also provided an additional 0.5% interest over the prevailing rate.

Therefore, using an SBI FD interest rates calculator is important to determine your returns accordingly.

A few of the benefits associated with using this calculator include:

• Helps you find the most suitable investment tenure
• Provides accurate results as against manual calculation
• Ease for you in planning short-term and long-term investment goals

## How does an SBI FD calculator work?

The  formula to calculate fixed deposit returns using the SBI bank FD calculator is as follows: A = P (1 + r/n) ^ n x t
In which,

• A = the amount you receive on maturity
• P = the amount you are investing
• r = the annual rate of interest
• n = the number of times the interest is compounded. (n will be 4 for quarterly compounding, 2 for half-yearly compounding and 12 for monthly compounding).
• t = the tenure of investment

### Example:

Let’s assume that an investor wants to invest Rs 25, 000 for 5 years at 7% annual interest compounded yearly.

• P = 25,000
• r = 7%
• n = 1
• t = 5

A = 25,000 (1 + 7%/2) ^ 2x5

As per the above calculation, an investor’s invested amount will become Rs 35,369 at the end of five years.

## How to use SBI fixed deposit calculator?

The procedure to use ClearTax FD Calculator is as follows:

• Enter the deposit amount
• Select the tenure and interest rate
• Click on 'Calculate'
• The maturity amount and the total interest that is earned will be shown in a span of a few seconds

## How to use ClearTax SBI fixed deposit calculator?

Using the Clear Tax SBI FD calculator is simple and hassle-free. You can follow these steps for an effortless calculation:

• Enter the initial investment amount
• Select the tenure and rate of interest
• The maturity amount and interest gained will be displayed on the page

## Benefits of the SBI FD Calculator

The main benefits of the SBI FD Calculator are as follows:

• The manual calculation is a tedious job with the risks of miscalculation. So, the ClearTax SBI FD calculator helps make calculations easy and accurate.
• It saves time as you need not follow the long calculation formula. Instead, enter the correct credentials and calculate the actual interest rates in seconds.
• You can select a suitable tenure after comparing the interest rates offered in different tenures.
• If you are a taxpayer, it will show the maturity amount after TDS.
• SBI FD calculators are a viable option for planning your short-term and long-term investment goals.

## SBI Domestic Term Deposit Rates: (Below Rs.2 crore)

*Including additional premium of 50 basis points 9bps) under ‘SBI Wecare’ deposit scheme.

Note:  All interest rates shown above are as of 22 January 2024.

## SBI FD rates

Take a look at the term-wise interest rates for SBI FDs:

• Long-term deposits:  Fixed deposits for 5 to 10 years of tenure are termed long-term deposits. They offer an interest rate of a maximum of 6.10% p.a.
• Medium-term deposit: FDs with 12 months to less than 5 years tenure are termed medium-term deposits. For medium-term deposits, you can get an interest rate between 5.50% to 6.10% p.a.
• Short-term deposits: Interest rates for short-term deposits ranges between 3.00% to 5.50% p.a.  You can make fixed deposits for a short period ranging between 7 days to less than 12 months.

## SBI FD rates for senior citizens

For senior citizens, the interest rate of SBI FD ranges between 3.50% to 6.90% p.a., with an additional interest rate of 0.50%.

## Deposit tenure

You can choose a deposit tenure for as less as 7 days to as long as 10 years while investing in State Bank of India fixed deposits. However, the interest rate will vary according to the chosen tenure. You can receive a higher return for long-term deposits than short- or mid-term deposits.

## Minimum and maximum deposit amount

You can start your investment with as low as Rs.1000 fixed deposit. So, the minimum deposit amount for SBI FD is Rs.1000. However, SBI has not set any maximum amount yet. You can choose any higher amount as per your capability for a fixed deposit.

So, you can plan your investment according to your financial necessities. A long-term deposit will earn you huge interest, but you have to wait for years to receive the return. However, a short or mid-term deposit can help you expand your savings in a limited time.

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

The minimum amount required for opening an SBI fixed deposit account is Rs 1,000.

Can I add nominees to the FD account?

Yes, it is possible to add nominees to an FD account.

What is the maximum deposit that can be made towards an FD account?

There remains no maximum limit that can be deposited towards an FD account.

What are the charges for premature withdrawal of an SBI FD?

In the case of a term deposit of up to Rs 5 lakh, the penalty for premature withdrawal for all the tenures is 0.50%.

Can I take a loan against the money available in the FD account?

An individual can avail a loan, which could be up to 90% of the total value of the term deposit. A minimum loan amount of Rs 25,000 and a maximum loan amount of Rs 5 crore can be suitably availed.  The interest rates are charged at 1%. This is in addition to the relative term deposit rate.

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

At present, the highest FD rate is 7.10% for FD deposits with a term of 400 days.

Is there a premature withdrawal facility available with SBI FD?

Yes. However, the premature withdrawal of SBI FD incurs a penalty of 0.50% on deposits up to Rs 5 lakh and 1% on deposits over Rs 5 lakh.

Does SBI provide loan against FD?

Yes, SBI offers a loan against FD. An investor can get up to 90% of the deposit amount as a loan, wherein the bank uses the FD as collateral. If an individual fails to repay the loan, the bank uses the FD to recover the loan amount. The SBI bank levies a 1% interest rate over the FD interest rate for a loan.

What is the interest of 1 lakh in SBI FD?

If you deposit Rs.1 lakh for a fixed tenure of 5 years and 6.4% p.a. interest is applied to it. So, you will earn an interest of Rs. 32,000 with an annual compounding frequency at maturity. Your maturity amount will be Rs.1,32,000.

What is the interest of 2 lakh in SBI FD?

For a fixed deposit of Rs. 2 lakhs with a 5-year tenure at a 6.4% interest rate, you can earn an interest amount of Rs. 64,000. So, your maturity amount will be Rs. 2,64,000.

What is the highest fixed deposit rate for State Bank of India?

The highest FD rate of State Bank of India is 6.10% for citizens and 6.90% for the senior citizens.

Is there any penalty for premature FD in SBI?

SBI states that for a term deposit of Rs. 5 lakhs, you need to pay a penalty of 0.50% for premature withdrawal. However, if you break the FD within less than 7 days of the deposit, SBI will not pay any interest

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