SBI NRE FD Maturity Calculator
Please note: NRE FDs must have a minimum tenure of 1 year.
Total Investment:
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Estimated Interest Earned:
₹0
Maturity Amount:
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Understanding SBI NRE Fixed Deposits
A Non-Resident External (NRE) Fixed Deposit is one of the most popular investment vehicles for Non-Resident Indians (NRIs) looking to park their foreign earnings in Indian Rupees. State Bank of India (SBI) offers competitive rates on these accounts, which are fully repatriable and tax-free in India.
Key Features of SBI NRE FD
- Tax Benefits: Interest earned on NRE FDs is completely exempt from Income Tax in India.
- Minimum Tenure: The minimum duration for an NRE FD is 1 year. No interest is payable if the deposit is withdrawn before 1 year.
- Compounding: SBI typically calculates interest on a quarterly compounding basis for tenures of 6 months and above (though NRE starts at 1 year).
- Repatriability: Both the principal and the interest earned are fully and freely repatriable to your country of residence.
How the Calculation Works
The calculator uses the standard quarterly compounding formula for Indian Fixed Deposits:
A = P [1 + (r/n)]^(n*t)
Where:
- A = Maturity Amount
- P = Principal Deposit Amount
- r = Annual Rate of Interest (in decimal)
- n = Number of compounding periods per year (4 for quarterly)
- t = Total tenure in years
Example Calculation
If you invest ₹10,00,000 in an SBI NRE FD for 3 years at an annual rate of 6.75%:
| Investment Component | Value |
|---|---|
| Principal Amount | ₹10,00,000 |
| FD Rate | 6.75% |
| Tenure | 3 Years |
| Compounding | Quarterly |
| Maturity Value | ₹12,22,393 |
Frequently Asked Questions
1. Can I open an NRE FD for 6 months?
No, SBI NRE FDs require a minimum tenure of 1 year. If you need a shorter duration, you might consider other NRI account types, though tax implications differ.
2. Is the interest taxable?
No, interest earned on NRE deposits is currently exempt from Indian Income Tax. You do not need to pay any TDS on the interest accrued.
3. What happens if I withdraw early?
If withdrawn before 1 year, no interest is paid. After 1 year, SBI may apply a premature withdrawal penalty (usually 0.50% to 1.00%) on the applicable rate for the period the deposit remained with the bank.