Maximizing Returns with SBI FD: A Deep Dive into the SBI FD Calculator

A Fixed Deposit Calculator is an accounting tool that helps calculate the maturity amount of the investment made via FD. It calculates the maturity amount, taking into consideration the principal amount, interest rates, and time period. SBI offers risk-free and guaranteed returns on the investment. FD allows users to invest the savings amount to get attractive interest rates on FD till the time it matures. The maturity amount that is to be received from the SBI fixed Deposit can be calculated using the SBI FD Interest Calculator. Also, SBI provides senior citizens with a higher rate of interest in FD as compared to that of the general public.

How to Apply for SBI Fixed Deposit? 

SBI customers can apply for a fixed deposit either online or offline, i.e. by visiting the nearest branch of the bank. But before visiting the bank, the customer should check if the SBI Open today or not. If the customer opts to apply offline, he/ she should download the application form and submit it to the nearest branch of SBI along with the documents required. In case he/ she wants to apply online, one must require:

  • A SBI Savings Bank Account
  • A Net Banking User ID and Password
  • At least one transaction account should be linked to the username

Mentioned below are the steps to apply for SBI Fixed Deposit Online:

Step 1: Log in to the SBI account online.

Step 2: Provide your username along with the password.

Step 3: Click “Login” to proceed further.

Step 4: On the main menu, click the e-fixed deposit link.

Step 5: Now, create a deposit amongst various options available.

Step 6: Now, click the e-TDR/ STDR option.

Step 7: Enter the savings account number from which the amount is to be debited.

Step 8: Enter the amount to be debited. Select the TDR or STDR option.

Step 9: Click “Confirm” to generate the online fixed deposit account.

SBI Fixed Deposit Form

The Fixed deposit form of SBI is available online as well as at the branches. Mentioned below are the details that are to be filled out in the form:

  • Customer status – existing customers or new to the bank
  • Funding account details, i.e., the account to be debited
  • Applicant’s details
  • Co-applicants details
  • Term of deposit
  • Details of the account in which interest is to be credited
  • Maturity instructions (tenure of policy, auto-renewal)
  • Frequency of interest payable
  • Signature of both customers
  • Product name or the name of the deposit scheme

SBI Fixed Deposit TDS Implications 

Mentioned below are the different TDS implications on the fixed deposit of the SBI:

  • The amount of interest earned on a fixed deposit is taxable according to the income tax slabs.
  • In the case of resident Indians, the TDS is applied @ 10% on the interest amount of INR 40,000 or above. This rate applies to the regular citizens.
  • In the case of senior citizens, the TDS is applicable @ 10% only, but the threshold limit is INR 50,000 or above.
  • In the case of non-submission of the PAN details, the TDS will be applicable @ 20%.
  • Under 80C of the Income Tax Act, 1961, the investors can take benefit of tax deductions up to INR 1.5 lakhs on depositing the funds into the SBI tax saving FD.

How does the SBI Fixed Deposit Calculator work?

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 –

  • 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
  • t, the tenure of investment.

Overview of Fixed Deposits

Fixed Deposits A type of deposit where you can earn interest by depositing a fixed amount for a certain tenure.
Who Provides? All Banks and NBFCs
How to Open Can be opened online and offline
Risk Meter No risk as it is governed by the RBI
Types of FDs
  • Standard
  • Tax Savings
  • Special
  • Corporate
  • Regular
  • Senior Citizen
  • Flexi
Is there any fixed deposit scheme for NRIs? Yes, NRE (Non-resident External) and NRO (Non-resident Ordinary)
Premature Withdrawal Subject to Banks’ norms (Usually, there is a penalty on the interest rate)
How to Calculate FD Interest? You can use the FD interest rate calculator available over the Internet.

Types of Fixed deposits

There are different types of fixed deposits with different banks. There are basically two categories of fixed deposits: cumulative and non-cumulative deposits. In cumulative deposits, the interest is paid along with the principal amount at the time of maturity. However, in the case of non-cumulative deposits, the interest is usually paid on a quarterly basis. If interest is paid monthly, it would be at discounted rates. 

Let us know the different types of Fixed Deposits: 

A. Standard Fixed Deposits 

This FD is available with all banks. Some of the features are mentioned below –

  1. Money is deposited for a fixed tenure.
  2. The rate of interest is pre-determined by the bank only.
  3. The tenure for the FD will be between 7 days to 10 years.
  4. Interest rates of FD will be definitely higher than you will get with a savings account.

B. Tax Saving Fixed Deposits 

As the name suggests, these deposits help in saving tax and are available with all the banks.

  1. One can get a tax exemption of 1.5 lakhs Rupees in a year using this type of FD.
  2. The lock-in period of this FD is 5 years, during which you cannot withdraw the amount.
  3. Only one time of lump sum deposits are allowed in this type of FD.

C. Special Fixed Deposits

Like standard FD’s, these funds are also invested for specific time periods. One can earn higher interest on it than the standard FDs if you don’t withdraw the money for the specified period.

D. Regular Income Fixed Deposits

If you have a limited income and depend on the interest from bank deposits for your monthly expenses, this type of FD is the best suited for you. One can either opt for a monthly or quarterly interest payout.

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