How to Calculate FD Interest in SBI?

Fixed Deposits (FDs)
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Need to know how to calculate interest on fixed deposit sbi

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If you want to know how to calculate FD interest in SBI, you could do it manually, but honestly, I would recommend using a fixed deposit return calculator. It is faster and way more accurate.

Look for a reliable FD calculator page; here, you will find an online calculator that can calculate the FD interest in a minute. You need to enter the following details:

  • The total investment amount
  • Rate of interest
  • Time period

Then, choose the ‘Compounding Frequency’ from the dropdown list that shows three options:

  1. Quarterly
  2. Half-yearly
  3. Yearly

For your clear understanding, let me explain this using an example. Suppose you wish to invest ₹5,00,000 for 5 years in an FD.

Step 1: Enter ₹5,00,000 in the ‘Total Investment’ section.

Step 2: Input 5 in the ‘Time Period’ section.

Step 3: 6.05 in the ‘Rate of Interest’ section

If you are a senior citizen, enter 7.05 in the interest rate section. Post that, it is time to choose the ‘Compounding Frequency’. Choose ‘Quarterly’ to get the highest return, worth ₹6,75,089. If you select yearly compounding frequency, the total Fixed Deposit return will be ₹6,70,693, which will create a ₹5,000 difference.