SBI Scheme: SBI gives 3.5% to 7% annual interest to the customer on FDs of different maturities. SBI’s FD scheme is a good option for long term investment for senior citizens.
SBI Scheme: If you are looking for a solid option to double the money in the long term, then FDs are an effective option. In the country’s largest bank SBI, customers also get the facility of FDs from 7 days to 10 years. SBI gives 3.5% to 7% annual interest to the customer on FDs of different maturities. SBI’s FD scheme is a good option for long term investment for senior citizens.
SBI: Interest rates from 7 days to 10 years
| General Public | Senior Citizen | |
| Tenors | Interest Rates | Interest Rates |
| 7 days to 45 days | 3.4% | 4.0% |
| 46 days to 179 days | 5.5% | 6.0% |
| 180 days to 210 days | 6.25% | 6.75% |
| 211 days to less than 1 year | 6.5% | 7.0% |
| 1 Year to less than 2 years | 6.8% | 7.3% |
| 2 years to less than 3 years | 7.0% | 7.5% |
| 3 years to less than 5 years | 6.75% | 7.25% |
| 5 years and up to 10 years | 6.50% | 7.50%* |
*Including additional premium of 50 bps under ”SBI We-care” deposit scheme.
SBI FDs: How to turn ₹10 lakh into ₹20 lakh
Suppose, a regular customer deposits ₹10 lakh in a 10-year FD in SBI. According to the SBI FD Calculator, the investor will get a total of ₹19,05,559 on maturity at an interest rate of 6.5 per cent per annum. This will give a fixed income of ₹9,05,559 from the interest. That is, your deposit amount will almost double.
On the other hand, a senior citizen deposits ₹10 lakh in a 10-year FD in SBI. According to the SBI FD Calculator, the senior citizen will get a total of ₹21,02,349 on maturity at an interest rate of 7.5 per cent per annum. This will give a fixed income of ₹21,02,349 from the interest. That is, your deposit amount will more than double.
SBI FDs: Interest income will be taxed
Bank FDs are generally considered safe. This is a good option for investors who do not take risks. 5-year tax saving FDs get the benefit of tax exemption under Section 80C. However, the interest received from FD is taxable.
According to the Income Tax Rules (IT Rules), Tax Deduction at Source (TDS) is applicable on FD schemes. That is, the amount received on maturity of FD will be considered as your income and you will have to pay tax according to the slab rate. For exemption from tax deduction, the depositor can submit Form 15G/15H.
