Important thing regarding investment is that one is constantly worried regarding returns and security of deposits. Even the investment would garner profit or not? If okay, then how much would we attained at the ripeness of the scheme. These are some queries that disquiet about all investors. But, the individuals investing in FD or fixed deposits don’t need to think about it a lot. In FD, all is prearranged.

This is the ratio at which the return is computed. The increment is offered on the originally deposited sum. The client prior investing may understand how much return he will obtain. How? Presume, if you are creating a fixed deposit account in SBI bank for the term of 1 year and the rate of interest is 7.25% p.a. To find out how much would you obtain at the end of the interlude employ SBI fixed deposit calculator.

The calculation becomes simple and easy. In just a few seconds the individual can understand the profit on investment employing the calculator. FD Calculator SBI is an online tool that on putting in the appropriate values like investment sum, interest rate and time of deposit would calculate the precise sum. This may assist you arrange your investment.

## How does the Calculator Works?

Comparable, the labor-intensive calculation of interest, the calculator employs an interest method for calculating the concluding investment worth. The calculator computes the maturity worth and interest sum using the below affirmed formula:

A = P (1 + r/n) nt

I = A – P

There are two processes of interest computation like simple interest and compound interest. The distinction amid the two is:

Simple Interest- In this process, the interest is computed on the firstly deposited sum for the whole deposit term. The interest receivable stays same all through the term of the period. The returns on these deposits are lesser.

Compound Interest- Deposits attaining interest at compound interest offer increased returns. As the sum of interest attained in the preceding period is appended to the first principal and the new-fangled sum is taken into deliberation for computing the interest of subsequent period. That is the principal sum keeps on altering throughout the tenure.

The SBI FD calculator is present online on the bank’s site. Employing it, you may make things easier for you. Verify the **FD Interest Rate Online** as well as check returns.