Fixed Deposits are one of the most secure options available in the market for an individual who wants to make a financial investment without attaining any risks on their payments. SBI FD Calculator helps you find the maturity value on your investments done in FD at SBI.
Fixed Deposits impart an opportunity to do both, enhance your savings as well as receive assured returns at the same time. Continue reading to understand various things related to Fixed Deposit schemes offered by the State Bank of India.
What is SBI Fixed Deposit?
SBI Fixed Deposits offer multiple kinds of fixed deposit schemes which efficiently meet the needs and requirements of different individuals.
Ranking amongst the topmost trusted investment avenues present in the country, State Bank of India is one of the most successful banks of India due to its assets, easy assistance and well-known banking solutions.
SBI Fixed Deposit prioritizes towards rewarding its investors with high returns by upholding massive competitive interest rates, also making sure to match the short and long-term goals of its depositors effectively.
To comprehend in a better way before making an investment, given below are some of the primary characteristics of SBI Fixed Deposits which rightly define its base. These characteristics are as follows –
SBI FD Calculator Rules
- At the lowest, Fixed Deposits can be acquired by investing even a minimal amount of Rs. 1000 with no maximum restriction limit.
- Allowance to deposit huge amount in a go (more than Rs. 2 crore)
- Investment period starting from 7 days till 10 years is offered
- 0.5% additional interest rates are provided to depositors above 60 years in age
- Under certain schemes, a supplementary interest of 0.3% is given to its senior citizen depositors (60 years and above) investing for 5 years and more with the prevailing 0.5%, i.e. 0.8% interest rate is offered to senior citizens.
- Under Section 80C (Income Tax Act, 1961), tax benefit can be availed via certain plans.
Also Read: What is Provident Fund?
What is SBI FD Calculator?
While investing in a Fixed Deposit, it is vital to learn and evaluate its interest rates and the sum amount it will benefit you with at the period of its maturity.
Hence, SBI offers this service with a simple yet valuable tool which is called as SBI FD Calculator.
This tool allows you to calculate your maturity amount and interest by providing basic information like the principal amount, duration of the plan, interest rate and the interest evaluating frequency by which the returns are going to be evaluated.
Therefore, while planning to invest in a fixed deposit, it is recommended to calculate the maturity amount as per the company’s interest rates as that keeps on fluctuating with time.
- Data required while calculating on SBI FD Interest Calculator:
- Principal amount – The amount paid by an investor for generating their Fixed Deposit plan with the bank is called as the deposit amount. Bigger deposit amounts may acquire higher interest rates under schemes offered by SBI.
- Interest Rate – The rate charged by SBI against your fixed deposit plan is called as its Interest rates. There is a comparatively low rate of interest on deposits made for less than one year as compared to deposits made for longer periods as they have higher interest rates.
- Duration – Generally, FDs acquired for a long period have higher rates of interest than compared to short investments as they have low rates of interest.
Interest Evaluating Frequency – Interest Evaluating Frequency is the frequency through which the interest of a plan is evaluated. It can be monthly, quarterly, half yearly or annual frequency.
- Some of the most significant advantages of using a Fixed Deposit Calculator SBI are as follows:
- Highly convenient to use.
- Identification of the most appropriate investment period.
- Ease in evaluating returns through a simpler calculation process by acquiring a precise amount, without having to do it manually.
- Simpler to channelize your short and long-term investment goals.
- Allows you to project a well-suited plan as per your requirements without any difficulty.
Also Read: Latest NSC Interest Rates
FD Interest Calculator SBI Benefits
Planning a financial investment does require a heavy research effort before actually moving further into a plan which best suits your pocket and at the same time, matches your financial goals. Amidst this hassle, to release yourself from stress and find out easy results, it is highly advisable to take use of SBI FD Calculator due to the following reasons –
- As SBI FD Calculator is an automatic tool, there will be no possibilities of any error.
- The calculator can be used multiple times for evaluation of different plans as it is completely free of cost.
- During evaluation of various tenures, amounts and rates there will be no means of exertion or confusion.
Also Read: What is ULIP? Is ULIP a good investment tool?
How to use SBI Calculator?
It is considerably easy to calculate the returns on your principal amount and the acquirable interest on your Fixed Deposit Plan by using the SBI FD Calculator.
You can simply stick to the following procedure to achieve the same –
- Go around the official website of SBI.
- Locate the FD Calculator SBI presents on their website and insert your principal amount and its annual interest rate.
- Leadingly, under the duration option, choose the maturity period of your deposit.
- Lastly, to get the final results as the maturity value and interest value of your desired fixed deposit plan, press the ‘Calculate’ button.
SBI FD Interest Rates Calculator
How does the SBI FD Interest Rates Calculator evaluate the interest amount?
Simple Interest and Compound Interest are two different formulas which are followed to evaluate the interest amount on a Fixed Deposit plan.
What is Simple Interest?
The interest acquired on a principal amount at a predetermined rate of interest for a specified duration is called a Simple Interest.
Formula of Simple Interest-
SI = P x R x T/ 100, indicated as,
SI = Simple Interest
P = Principal (deposit)
R = Rate of Interest (in percentage)
T = Tenure (duration of the FD)
What is Compound Interest?
The total amount acquired on the deposited amount as well as its interest is called as the Compound interest.
Formula of Compound Interest-
A = P (1+r/n) ^ (n * t), indicated as,
A = Maturity Amount
P = Principal amount
R = Rate of Interest
N = number of compounding in a year
T = number of years
- What is Simple Interest?
SBI FD Calculator 2020 in India:
|Duration||Interest Rates||Maturity Amount for Rs. 1 Lakh|
|7 days to 45 days||3.30% to 3.80%||Rs. 100,063 – Rs.100,468|
|46 days to 179 days||4.30% to 4.80%||Rs. 100,542 – Rs.102,368|
|180 days to 210 days||4.80% to 5.30%||Rs. 102,381 – Rs.103,076|
|211 days to 364 days||4.80% to 5.30%||Rs. 102,797 – Rs.105,391|
|2 years to 2 years 364 days||5.50% to 6.00%||Rs. 111,544 – Rs.119,542|
|3 years to 4 years 364 days||5.70% to 6.20%||Rs. 118,506 – Rs.135,995|
|5 years to 10 years||5.70% to 6.50%||Rs. 132,709 – Rs.190,556|
|1 year to 1 year 364 days||5.50% to 6.00%||Rs. 105,614 – Rs.112,631|
Also Read: How to use Gate Virtual Calculator?
SBI FD Plans
There are various advantages of SBI FD plans which make it a trustworthy site for its investors to doubtlessly deposit their remaining savings for great returns. Listed below are some of the perks offered by SBI FD schemes –
- Rs. 5 lakh of insurance coverage protection for all its investors.
- Facility of monthly or quarterly interest payouts as per the depositor’s selection.
- Assurance of fixed interest rate returns is given at the time of booking.
- Availability of automated renewals.
- Accessibility to loan/Overdraft service while undergoing any financial strain.
- Allowance for making a premature withdrawal of the deposit.
- Service of nominating an individual is provided.
SBI FD Interest Calculator Factors
SBI, stands amongst the uppermost ranked leading banks in India which offer appreciable returns.
Hence, after learning about the usage of SBI FD Interest Calculator as well as features of SBI Fixed Deposits and its benefits, it is also vital to acquire knowledge regarding the factors which affect the principal amount you will receive at the end of your FD’s tenure. These factors are as follows –
Age of the Applicant
SBI Fixed deposit provides 3.80% and sets at 6.50% additional interest benefit to senior citizen investors above 60 years of age which is more than the usual rate of interest provided to depositors not falling under this age category as SBI FD interest rates for these people starts from 3.30% up to 5.70%.
FD Tenure Duration
The duration for which the amount deposited by you remains invested in the bank is called as its Tenure period. SBI provides a duration period starting from 7 days up till 10 years, creating a great scope for fulfillment of different needs and requirements of its investors. The tenure of your Fixed Deposit plan directly affects its interest rates.
Economic changes also leave a huge impact on the rate of interest of a Fixed Deposit. Such amendments are done based on the rising economic situation of the country, as well as changes in repo rate by the Reserve Bank of India (RBI) and inflation.
During recession, to provide the market with substantial liquidity, RBI releases the funds in the market which is done by lowering the rates on cash reserves of the banks. The interest rates offered under Fixed Deposits is lowered by the bank in such circumstances of Recession due to high liquidity and low credit demand.
Generally, interest rates of a fixed deposit are more than the existing inflation rates. Therefore, during inflation, interest rates on fixed deposits are higher.
Also Read: List of Top Term Plans in India
FD Calculator SBI Types
State Bank of India offers a plethora of different Fixed Deposit schemes to ideally meet various needs and requirements of different individuals. These schemes are as follows –
SBI Term Deposit Plan
The minimum deposit amount under this investment is Rs. 1000 with a flexible tenure period of 7 days going up to 10 years. It covers various other features like premature withdrawal, nomination services, auto-renewal, as well as loan on your Fixed Deposit plan.
SBI Fixed Deposit Tax Saving Plan
Especially created for the benefit of providing tax redemption, depositors can invest and acquire rebates of up to Rs. 1.5 Lakh annually under Section 80C of the Income Tax Act, 1961. Although, the period of investment under SBI Fixed Deposit Tax Saving Plan is fixed for 5 years and interest is calculated quarterly. Premature drawings or loan services are not permitted under this plan.
SBI Fixed Deposit Reinvestment Plan
SBI Fixed Deposit Reinvestment Plans are highly beneficial for individuals who want to attain greatly enhanced returns during the time of maturity of their plan. This is so, because this type of scheme reinvests the quarterly sum acquired by you into its principal amount through which a further interest calculation takes place. Eventually, higher interest directly results in increase in the amount you get during the period of your plan’s maturity. Investment with a minimum of Rs. 1000 can be made under this scheme with a tenure ranging from 6 months to 10 years. Premature withdrawal, auto-renewal and loan services are offered under this plan.
SBI MODS or Multi Option Deposit Scheme
State Bank of India offers Multi Option Deposit Scheme which is composed keeping in mind the features of both, Fixed Deposits and a Savings account. The period of this plan ranges from 1 to 5 years and necessitates a minimum deposit of Rs. 10,000. An investor is allowed to draw out money in multiples of Rs.1000, under this scheme while the rest amount resumes attaining interest over it. The tenure ranges between 1 and 5 years with a minimum investment requirement of Rs. 10,000.
SBI Annuity Deposit
SBI offers an Annuity Deposit scheme where an investor is allowed to deposit an estimate and then the amount is paid through Equated Monthly Installments or EMIs. Minimum investment under this plan is Rs.25, 000 on minimum monthly deposit of Rs.1000 and its tenure ranges from 3, 5, 7 or 10 years. Loan and nomination facilities are available. However, premature withdrawal can be made only in circumstance of the death of its depositor.
|SBI Schemes||Minimum Deposit||Tenure||Loan Facilities against FD/Deposit||Premature Withdrawal||Additional Information|
|SBI Term Deposit Plan||Rs.1000||7 days – 10 years||Till 90% of invested amount against FD||Penalty of 0.5% up to Rs. 5 lakh; Penalty of 1% on more than Rs. 5 lakh||Allowance of tax rebate for up to Rs. 1.5 lakh every financial year and quarterly calculation of interest|
|SBI Fixed Deposit Tax Saving Plan||Rs.1000||5 – 10 years||Not permitted||Not permitted||Allowance of tax rebate for up to Rs. 1.5 lakh every financial year and quarterly calculation of interest|
|SBI Fixed Deposit Reinvestment Plan||Rs.1000||6 months – 10 years||Till 90% of invested amount against FD||Penalty of 0.5% up to Rs. 5 lakh; Penalty of 1% on more than Rs. 5 lakh||Increment in principal amount through reinvestment of interest and allowance for linking Current or Savings Account|
|SBI MODS or Multi Option Deposit Scheme||Rs.10, 000||1 year – 5 years||Loan against deposit is provided||Permitted to acquire in the multiple of Rs. 1000||Linked with current/ savings deposit|
|SBI Annuity Deposit||Rs.25, 000 (minimum of Rs.1000 every month)||3, 5, 7, 10 years||Up to 75% of the balance amount of the deposited made||Can be availed if the depositor dies||EMI can be availed on depositing an estimate amount|
Also Read: Car Insurance Benefits and Discounts
Different schemes and SBI Interest Calculator for NRI –
Non-Residential External (NRE) Fixed Deposit Account
This scheme allows investment of money in the form of any foreign currency which can get converted in Indian currency during depositing. However, drawings can be made only in Indian rupees. NRIs can deposit their savings and gain interest on them without attaining any risks on it
Non-Residential Ordinary (NRO) Fixed Deposit Account
This scheme is specially designed for Non-Resident Indians and can be acquired jointly with a local resident. However, the sum amount as well as interest under the Fixed Deposit plan is subjected to tax in India and an NRI individual has to deposit their savings in Indian rupees.
Foreign Currency Non-Residential (FCNR) Fixed Deposit Account
An FCNR account can be easily opened jointly with other NRI account holders. Under this scheme, the deposits can be made in any currency by the NRI investor where the interest and sum amount are subjected to tax in the concerned foreign country but not in India.
Resident Foreign Currency (RFC) Fixed Deposit Account
This scheme is especially designed for Indian individuals who have returned from a foreign country. RFC allows such people to make deposits in foreign currencies like USD, GBP or EURO and the interest returns acquired under this type of Fixed Deposit are also provided in the same currency.
What are the Accessibility Norms for SBI Fixed Deposit Account?
It is advisable to all individuals interested in acquiring a SBI Fixed Deposit account to make sure to check whether they fit within the specified accessibility norms by the bank and have all required documentation for successfully opening a Fixed Deposit account. Please note that the list of documents can be improvised by SBI as per their requirements.
SBI FD Plan can be availed by the following –
- Hindu-Undivided Families
- Resident Individuals
- Societies and trusts
- Public and private limited companies
- Partnership firms
Necessary Documentation required for opening a Fixed Deposit account –
- Passport size photographs
- Address proof (Passport, Voter ID card, etc.)
- Photo ID proof (Aadhaar Card, Passport, etc.)
- Age proof (Birth certificate, matriculation certificate, etc.)
- Details of bank account
Understanding TDS on SBI Fixed Deposits
A method created by the government for collecting tax directly from where the income gets generated is called Tax Deducted at Source or TDS.
This means that the person accountable to make payment of specified nature to the other person will deduct tax at source and transfer that amount to the account of the Central Government.
- TDS is applicable (10%) in case interest acquired over Fixed Deposits by an investor is more than Rs. 40,000 (Rs, 50,000 for senior citizens).
- However, if your PAN Card is not submitted or updated with SBI, 20% TDS will be deducted.
- TDS is applicable on Fixed Deposits incurred by residents only.
Also Read: Latest NSC interest rates
What is Premature Withdrawal in Fixed Deposit?
If an investor opts to draw out the deposited amount under their fixed deposit plan before its maturity period, this extraction of activity is called Premature Withdrawal. Although, as per the terms and conditions, SBI fixed deposit schemes which provide this service demand a specific penalty from the depositor.
- Significant points to keep in mind before planning to make a Premature Withdrawal of your Fixed Deposits. These points are as follows:
- A penalty of 0.5% to 1% is charged on making a premature withdrawal over a Fixed Deposit plan.
- The scheme of Tax Saving Fixed Deposit by SBI does not permit this activity.
- In case of the Non-resident Ordinary Fixed Deposit, if the amount is withdrawn after completion of a year, 1% lower interest than that of the applicable rate is charged.
- However, no interest is demanded if the withdrawal is made within 7 days of making a Fixed Deposit in case of Non-resident Ordinary accounts.
What are Loan Facilities under SBI Fixed Deposit plan?
State Bank of India offers its investors with an efficient service of availing loans against their Fixed Deposit of up to 90% of the total amount deposited in case of a financial strain or emergency.
Although, it is permitted under various FD schemes of SBI to avail the facility of making a premature deposit but it is not advisable to an investor to do so as it is not a beneficial step.
That is because the depositor has to suffer a penalty charge and their interest amount also gets reduced at the same time as the bank reevaluates and pays at a lower rate of interest as compared to that on which the FD was first issued.
Also Read: What is Coverage in Car Insurance Policy?
Hence, acquiring a loan under your FD plan is comparatively a finer choice as it provides a loan at lesser interest rate and keeps your fixed deposit plan and its interest unaffected.
The interest rate under SBI FD Loans are lower than other loans as these are entirely secured in type because the bank has the authority to recover the amount of loan from an individual’s FD, in case if they are unable to repay it.
Characteristics of Loan services under SBI Fixed Deposit plan –
- Overdraft Amount limits – Loan up to 90% of the total deposit can be acquired against SBI Fixed Deposits and the limit amount for availing overdraft online is till Rs.25, 000. A maximum of Rs. 5 Crore can be acquired as loan under SBI FD plans.
- Accessibility – Loans are accessible by both single and joint account Fixed Deposit holders. However, single account holders get the service of applying for a loan online against TDR and STDR. Whereas, in case of a joint account, it is necessary for all the members of the FD to sign the request application for loan before submitting it to the bank.
- Processing Fee – The account holder of a Fixed Deposit plan who wants to take a loan does not have to endure any processing charges for availing an overdraft under State Bank of India.
- Repayment duration – Loan against STDR/STDR provides a minimum of 6 months up to 5 years of duration or the residual period (the one which is lesser) for the repayment of loan. Whereas, loan against e-TDR/TDR, a duration of minimum 6 months up till 3 years or the residual period (the one which is lesser) is allowed . This duration is depicted according to the capacity of the holder and prepayment of the loan can also be made without undergoing any additional charges.
- Mode of Repayment – It is necessary to make the repayment of loan on time to avoid dissolution of your Fixed Deposit. SBI has an authority to do so in order to recover the sum. Repayment can be done by Internet Banking or via visiting your local SBI.
Rate of Interest – The bank may impose variant interest rates on its customers dependent on their trust factor. For instance, if a holder already is in good terms with the bank, he/she might be charged a lower rate of interest as compared to some other person applying for the same amount of loan, as in this case, the debt falls under safe category.
How to apply for loan against SBI Fixed Deposit
Procedure to apply for loan ONLINE:
- You can visit the official website of SBI
- Log in to your profile for internet banking.
- Locate the e-fixed deposit tab and open it
- Initiate a request application for loan under Overdraft against FD option.
Procedure to apply for loan OFFLINE:
- Simply visit the branch of your SBI account
- File a request for the loan against your Fixed Deposit on spot.
- Please note that all applicants of a joint holder Fixed Deposit plan are required to sign on the overdraft form to successfully conduct the process of acquiring a loan against FD.
- Procedure to apply for loan ONLINE:
SBI FD Calculator FAQs
How fixed deposit interest is calculated in SBI?
Fixed Deposit at SBI is calculated basis the number of months you want to invest your money. The interest rate is compounding and increases as duration of FD increases.
What is the rate of FD in SBI?
Interest Rate of SBI FD starts from 5.5% for non senior citizens with minimum investment duration of 46 days to 6.10% till 10 years. For senior citizens, the FD interest rate is 0.5% higher in all slabs
Which SBI FD is best?
FD done for 1 years is best at SBI as it fetches same interest rate as that for 5 to 10 years – 6.1%. You can again invest same amount in that FD post 1 year. This strategy is best as it provides you benefit of taking out your investment amount after 1 year itself. And in case you want to invest again, you can invest as well.
What is the interest of 1 lakh in SBI?
Interest Rate on 1 lakh Rs investment done at SBI will get you minimum interest of INR 5,800 in 1 year, INR 6,100 per year if investment is done for 5 years.