1. What is SBI Auto Sweep Interest Rate?

The SBI Auto Sweep Interest Rate calculates the annual interest rate for SBI's auto sweep facility, which automatically transfers excess funds from savings account to fixed deposits to earn higher interest rates.

2. How Does the Calculator Work?

The calculator uses the SBI Auto Sweep Interest Rate formula:

Where:

• \( R \) — Annual interest rate (%)
• \( A \) — Final amount (currency units)
• \( P \) — Principal amount (currency units)
• \( n \) — Compounding frequency (unitless)
• \( T \) — Time period (years)

Explanation: The formula calculates the effective annual interest rate considering compound interest with specified compounding frequency.

3. Importance of Interest Rate Calculation

Details: Accurate interest rate calculation helps customers understand their potential returns from SBI's auto sweep facility and make informed investment decisions.

4. Using the Calculator

Tips: Enter the final amount, principal amount, compounding frequency, and time period. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is SBI Auto Sweep Facility?
A: SBI Auto Sweep automatically transfers excess funds above a threshold from savings account to fixed deposits to earn higher interest rates.

Q2: How does compounding frequency affect interest rate?
A: Higher compounding frequencies generally result in higher effective interest rates due to more frequent compounding.

Q3: What are typical compounding frequencies?
A: Common compounding frequencies include quarterly (n=4), monthly (n=12), and daily (n=365).

Q4: Is this calculator specific to Indian currency?
A: The calculator works with any currency as long as amount and principal are in the same currency units.

Q5: Can this calculator be used for other bank's sweep facilities?
A: While designed for SBI, the formula can be applied to similar auto sweep facilities offered by other banks.