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:
- Quarterly
- Half-yearly
- 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.