The SBI Fixed Deposit Calculator estimates your returns by:

• Calculating interest based on your deposit amount and tenure
• Considering the current SBI FD interest rates
• Computing both simple and compound interest options
• Providing a detailed breakdown of your investment returns

Detailed Explanation:

This calculator uses two different methods to calculate interest on your fixed deposit:

Simple Interest Calculation:

• Simple Interest = Principal × Rate × Time
• Where:
• Principal = Your deposit amount
• Rate = Annual interest rate (as a decimal)
• Time = Investment period in years
• For example: If Principal = ₹1,00,000, Rate = 6.5% = 0.065, Time = 3 years
• Then: Simple Interest = 1,00,000 × 0.065 × 3 = ₹19,500

Compound Interest Calculation:

• Compound Interest = Principal × (1 + Rate)^Time - Principal
• Where:
• Principal = Your deposit amount
• Rate = Annual interest rate (as a decimal)
• Time = Investment period in years
• For example: If Principal = ₹1,00,000, Rate = 6.5% = 0.065, Time = 3 years
• Then: Compound Interest = 1,00,000 × (1 + 0.065)^3 - 1,00,000 = ₹20,847

Maturity Amount Calculation:

• Maturity Amount = Principal + Interest
• For simple interest: Maturity Amount = 1,00,000 + 19,500 = ₹1,19,500
• For compound interest: Maturity Amount = 1,00,000 + 20,847 = ₹1,20,847

Effective Annual Rate:

• Effective Annual Rate = (1 + Nominal Rate/n)^n - 1
• Where n is the number of compounding periods per year
• For quarterly compounding: n = 4
• For monthly compounding: n = 12

Important Notes:

• SBI FD interest rates vary based on deposit amount and tenure
• Senior citizens receive an additional 0.50% interest
• Premature withdrawal penalties may apply
• Interest is subject to TDS as per applicable tax laws

This calculator also includes text-to-speech functionality to announce your calculated maturity amount, making it more accessible for all users.