SBI Fixed Deposit : Fixed deposits (FDs) remain one of the most preferred investment options in India due to their safety, guaranteed returns, and ease of use. Among the many financial institutions offering FD schemes, the State Bank of India (SBI) continues to be a trusted choice for millions. With competitive interest rates and flexible tenures, SBI’s FD plans offer attractive returns. In this article, we will explore how an investment of ₹4 lakh can grow to ₹5,52,168, and provide complete insights into SBI FD schemes including interest rates, maturity periods, tax implications, and more.
SBI Fixed Deposit : Why Choose SBI Fixed Deposits?
SBI is India’s largest public sector bank with a strong reputation for security and transparency. Choosing SBI for your fixed deposit ensures your funds are safe while earning reliable returns. Some of the major reasons why people prefer SBI FDs include:
- Wide range of FD tenures from 7 days to 10 years
- Competitive interest rates compared to other banks
- Assured returns with no market-related risk
- Option to receive interest payout monthly, quarterly, or at maturity
- Loan and overdraft facilities against FD
- Safe investment backed by the Government of India
SBI FD Interest Rates 2025 (Latest Update)
SBI periodically revises its interest rates based on RBI policies and market conditions. As of April 2025, here are the updated SBI FD interest rates for general public and senior citizens:
| Tenure | Interest Rate (General) | Interest Rate (Senior Citizens) |
|---|---|---|
| 7 days to 45 days | 3.00% | 3.50% |
| 46 days to 179 days | 4.50% | 5.00% |
| 180 days to 210 days | 5.25% | 5.75% |
| 211 days to less than 1 year | 5.75% | 6.25% |
| 1 year to less than 2 years | 6.80% | 7.30% |
| 2 years to less than 3 years | 7.00% | 7.50% |
| 3 years to less than 5 years | 6.75% | 7.25% |
| 5 years and up to 10 years | 6.50% | 7.50% |
Note: Interest rates are subject to change. Please check SBI’s official website for the latest updates.
See More : LIC Fixed Deposit Plan 2025
SBI Fixed Deposit Calculation: ₹4 Lakh Investment
Let’s understand how a ₹4 lakh investment grows in an SBI Fixed Deposit depending on the tenure and interest rate. Below is a detailed projection for different tenures:
| Investment Amount | Tenure | Interest Rate | Maturity Amount | Total Interest Earned |
|---|---|---|---|---|
| ₹4,00,000 | 1 year | 6.80% | ₹4,27,200 | ₹27,200 |
| ₹4,00,000 | 2 years | 7.00% | ₹4,61,600 | ₹61,600 |
| ₹4,00,000 | 3 years | 6.75% | ₹4,86,362 | ₹86,362 |
| ₹4,00,000 | 4 years | 6.75% | ₹5,09,520 | ₹1,09,520 |
| ₹4,00,000 | 5 years | 6.50% | ₹5,33,600 | ₹1,33,600 |
| ₹4,00,000 | 5 years (Senior) | 7.50% | ₹5,78,100 | ₹1,78,100 |
| ₹4,00,000 | 5 years Tax Saver FD | 6.50% | ₹5,52,168 | ₹1,52,168 |
The above figures are indicative and based on compound interest calculations assuming annual compounding.
SBI Tax Saver Fixed Deposit Scheme
If you’re looking to save on taxes while earning decent returns, SBI’s 5-Year Tax Saver Fixed Deposit is a great option. Here’s what you need to know:
- Lock-in period of 5 years
- Eligible for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh
- No premature withdrawal allowed
- Option to receive interest periodically or at maturity
- Nomination facility available
This scheme is particularly useful for salaried individuals and those seeking guaranteed tax benefits without market risks.
Key Benefits of Investing in SBI Fixed Deposits
SBI’s FD schemes are packed with features designed to offer maximum convenience and returns. Here’s a breakdown of the primary benefits:
- Capital Protection: Your investment is safe and secure with zero market volatility.
- Regular Income Option: You can opt to receive regular interest payouts to support monthly expenses.
- Flexible Tenure: Choose any tenure from 7 days up to 10 years.
- Loan Against FD: Avail up to 90% loan against your FD amount at attractive interest rates.
- Online Management: Open, renew, and manage your FDs online through SBI’s net banking or YONO app.
How to Open an SBI Fixed Deposit Account
Opening an FD with SBI is easy and can be done both online and offline. Here’s a step-by-step guide:
Online Method:
- Log in to SBI Internet Banking or YONO app.
- Navigate to ‘Fixed Deposit’ section.
- Choose the FD scheme and enter the deposit amount.
- Select tenure, interest payout option, and nominee details.
- Confirm and submit.
Offline Method:
- Visit your nearest SBI branch.
- Fill out the Fixed Deposit application form.
- Submit KYC documents like PAN card, Aadhaar, and address proof.
- Deposit the amount via cheque, cash, or transfer.
- Collect the FD receipt from the bank.
Things to Consider Before Investing in SBI FD
Before you commit your funds into a fixed deposit, here are some key factors to keep in mind:
- Interest Payout Preference: Choose between monthly, quarterly, or cumulative interest options based on your needs.
- Premature Withdrawal Penalty: SBI imposes a small penalty (usually 0.50%-1%) for early withdrawal.
- Tax Implications: Interest income above ₹40,000 (₹50,000 for seniors) in a year is taxable under TDS.
- Reinvestment Option: On maturity, you can reinvest the entire amount for compound growth.
- Senior Citizen Benefit: Investors above 60 years earn additional interest of 0.50% across tenures.
SBI Fixed Deposits offer a blend of safety, decent returns, and flexibility, making them a solid investment choice for conservative investors. Whether you’re looking to park surplus funds, save for the future, or plan retirement income, SBI’s FD options are tailored to fit various needs. Investing ₹4 lakh in SBI FD can fetch you up to ₹5,52,168 in 5 years under the Tax Saver scheme—making it a reliable tool for wealth accumulation and tax savings.
Always review the latest interest rates and consult with a financial advisor before investing to ensure the plan aligns with your financial goals.
