If you want to earn better returns while keeping your savings safe, then fixed deposit (FD) is considered a reliable option. Especially if you invest in a big bank like State Bank of India i.e. SBI, you get stable interest along with security. But the question is, if you make an FD of ₹ 3,60,000 for 36 months (3 years), then how much money will you get on maturity? Here we try to understand this very thing. Its complete calculation will give you an idea of the returns. With this you will be able to take the right decision of your investment.
how much interest is being received
Currently, SBI is offering 6.30% per annum interest rate to general citizens on FDs of 3 years to less than 5 years, while senior citizens get 6.80% per annum with an additional 0.50% benefit.
Understand return calculation
If you are a normal customer and deposit Rs 3,36,000 in FD in SBI for 36 months, then according to the calculation based on 6.30% interest, you will get Rs 69,304 as return. That means a total fund of Rs 4,05,304 will be ready on maturity. Similarly, if you are a senior citizen, then if you calculate on the basis of 6.80 percent interest, then the total return will be Rs 75,330. This means that ultimately a fund of Rs 4,11,330 will be ready. The special thing is that you will get guaranteed returns on this amount, it will have nothing to do with market fluctuations.
Understand these important things
The interest deposited under SBI’s FD scheme is based on quarterly compounding, hence, returns are higher than simple interest. If you fall in the tax slab, TDS can be deducted, which you can save by submitting Form 15G/15H. The maturity amount includes both principal amount + interest. One more thing to understand, interest rates can change from time to time. Before opening FD, please confirm the latest rate on the official website of SBI or in the nearest branch.
(Disclaimer: This is not an investment advice but just an information. Consult your financial advisors before taking any decision related to money.)
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
