How to Use the SBI FD Calculator for Better Investment Planning?

SBI FD calculator makes your FD investment planning easier than you have ever imagined. With a few clicks, you will know exactly how much your savings will grow, how long it will take to hit the financial goal you have planned for and other related data. In this article, we will break down how this online tool works and how you can use it to make more informed investment decisions. 

What is the SBI FD Calculator? 

The SBI FD calculator is an online calculator provided by the State Bank of India, which helps investors like yourself to estimate the overall maturity amount and the total amount of interest they will be receiving once their fixed deposit matures. It takes into account your deposit amount, chosen tenure and applicable interest rate, and provides you with results. It is quick and spares you the headache of dealing with formulae and financial jargon. Think of this as a financial assistant in your pocket – no guesswork, just clear answers.  

How to Use the SBI FD Calculator? 

Here’s how you do the calculations on the SBI FD Calculator: 

• Visit the SBI FD calculator website.  
• Enter the deposit amount that you plan to invest in the “Principal” section. This can be as little as a couple of thousand rupees to a few lakhs, based on your current goals. 
• Choose your preferred tenure in the “Duration” section. Once you have added the number, you need to select between days, months and years from the list next to it. 
• Add in the interest rate that you are looking for. You can select anything between 1% to 21%. 
• You will be provided the total maturity value and interest value based on the above variables provided. 

Here’s an example: 

Let’s say, you plan to invest a total of Rs. 25,000 for a total tenure of 2 years. One fixed deposit plan provides you with an interest rate of 6% while another one offers you a 7% rate. Now, when we put in the numbers, you will notice the first plan will offer you Rs. 28,162 as the maturity amount while the next one will provide you Rs. 28,722.  

With this in mind, you can make an educated decision regarding which plan to invest in. However, please note that the total maturity amount provided by the SBI FD Calculator does not take premature withdrawal or tax implications into account. You need to plan for them separately.  

How to Get More Out of Your FD Investments? 

Now that you understand how the SBI FD calculator works, here are some tips that can help you get better returns from fixed deposits: 

1. Fixed deposit laddering 

Instead of locking away all of your hard-earned savings in one fixed deposit, you can consider splitting it across different FDs with different tenures. This ensures better liquidity and flexibility. 

2. Reinvestment of interest 

Choose the option to reinvest your interest earned every quarter instead of taking payouts. This ensures you get better returns due to compounded growth. 

3. Compare rates before investing. 

Always compare interest rates before making an investment decision. The higher the interest rate is, the better returns it will provide. 

4. Senior citizen benefits 

If you are 60 or above, you should look for senior citizen investment plans. Senior citizens are awarded much higher interest rates than young customers. This can help you maximise your FD returns.