SBI FD Scheme: For people looking for a relatively stable investment option, Fixed Deposits (FDs) remain a popular choice. State Bank of India (SBI) offers FD options across different tenures, allowing customers to lock in their money for periods ranging from 1 year to 10 years.
SBI also provides an additional interest rate to senior citizens compared with regular depositors. The applicable rate depends on the selected FD tenure.
SBI FD Interest Rates
For a 1-year FD, SBI offers an interest rate of 6.25% to regular investors, while senior citizens receive 6.75%.
On a 2-year FD, the rate is 6.40% for regular investors and 6.90% for senior citizens.
For deposits with a tenure of 3 to 4 years, regular customers receive 6.30%, whereas senior citizens are offered 6.80%.
For longer-term FDs with a tenure of 5 to 10 years, the interest rate stands at 6.05% for regular investors and 7.05% for senior citizens.
What Will ₹1 Lakh Become?
The maturity amount depends on the investment period and applicable interest rate. Based on the figures provided, interest is compounded quarterly.
For a ₹1 lakh FD with a 1-year tenure, the maturity amount is ₹1,06,398 for regular investors. For senior citizens, the maturity amount is ₹1,06,923.
The amount increases when the deposit is kept for a longer period. For a 10-year FD of ₹1 lakh, regular investors would receive ₹1,82,298 at maturity, while senior citizens would receive ₹2,01,146, based on the supplied rates and calculations.
Things to Check Before Opening an SBI FD
Before putting money into an FD, investors should carefully check the applicable interest rate and the selected tenure. It is also important to understand the rules for premature withdrawal, including any applicable penalty.
Tax implications should also be considered before investing. Customers should check how often the interest is compounded and understand the bank’s auto-renewal facility once the FD reaches maturity.
For those investing a larger amount, spreading the money across FDs with different maturity periods can also be considered, depending on individual financial requirements.
Disclaimer: This article is intended for general informational purposes and is based on the interest rates and calculations provided in the source material. FD interest rates, maturity amounts, withdrawal rules and tax provisions may change according to SBI’s prevailing policies and applicable regulations. Investors should verify the latest rates and terms on SBI’s official website or with the bank before making an investment decision.