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SBI Monthly Deposit Interest Formula:
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The SBI Monthly Deposit Interest Calculator helps you estimate the monthly interest earned on your savings account or fixed deposit with State Bank of India based on your average balance and the applicable annual interest rate.
The calculator uses the SBI interest formula:
Where:
Explanation: The formula calculates monthly interest by converting the annual rate to a monthly rate and applying it to your average balance.
Details: Understanding how much interest you earn monthly helps in financial planning, comparing different savings options, and maximizing your returns from bank deposits.
Tips: Enter your monthly average balance in INR and the annual interest rate in percentage. Both values must be positive numbers for accurate calculation.
Q1: What is monthly average balance in SBI?
A: Monthly average balance is the average of daily closing balances in your account over a calendar month.
Q2: Does SBI offer different interest rates for different account types?
A: Yes, SBI offers varying interest rates for savings accounts, fixed deposits, and other deposit schemes based on amount and tenure.
Q3: How often is interest credited in SBI accounts?
A: Interest in savings accounts is typically credited quarterly, while fixed deposit interest can be paid monthly, quarterly, or at maturity.
Q4: Are there any taxes on interest earned?
A: Yes, interest earned on bank deposits is taxable under Income Tax Act, and TDS may be deducted if interest exceeds specified limits.
Q5: Can I use this calculator for other banks?
A: While the basic formula is similar, interest rates and calculation methods may vary between banks, so check with your specific bank for accurate calculations.