SBI Fixed Deposit Interest Rates: When it comes to safe investments, State Bank of India Fixed Deposit (FD) comes to mind. State Bank offers great schemes for those who want stable returns Recently, State Bank of India has hiked its FD interest rates, making it an opportune moment for investors to explore potential gains.
SBI Fixed Deposit Scheme:
Various banks in India offer fixed deposit options, but SBI’s fixed deposit scheme is particularly notable for offering competitive interest rates. Even State Bank offers higher interest rates than Ananya Bank Besides, State Bank is unmatched in terms of safety and risk-free investment.
SBI has increased the interest rate on deposits below Rs 2 crore by 0.50 percent from 27 December 2023. This strategic move enhances the appeal of SBI FD to potential investors.
SBI Fixed Deposit Interest Rate:
For those thinking of investing Rs 5 lakh in SBI FD, the returns are dependent on the tenure chosen. Renewed interest rates range from 3.5 percent to 6.5 percent, with preferential rates for senior citizens.
1 Year to Less Than 2 Years Tenure: At an impressive rate of 6.80 percent, an investment of Rs 5 lakh for this period yields a return of Rs 5,34,876, with a substantial interest of Rs 34,876 per annum.
2 Years to Less Than 3 Years Tenure: Opting for this bracket at 7 percent interest gives a return of Rs 5,74,440, of which Rs 74,440 in interest enriches the investment.
3 Years Tenure: With the interest rate hiked to 6.75 per cent, an investment of Rs 5 lakh for three years earns an interest of Rs 1,11,196, a significant increase from the previous rate of 6.50 per cent.
5 Years Tenure: For a further extended commitment of five years at an interest rate of 6.50 per cent, the total return amounts to Rs 6,90,209.
Special Considerations for Senior Citizens:
It is important to note that senior citizens get more favorable interest rates, increasing returns for the same investment amount and tenure. Additionally, under Income Tax Section 80C, investors can get a tax deduction of up to Rs 1.5 lakh in SBI FDs, further adding to the attractiveness of this investment avenue.
Conclusion: SBI Fixed Deposit presents a lucrative opportunity for investors seeking a combination of safety and competitive returns. The recent rise in interest rates only adds to the appeal, making it a prudent choice for those looking to strengthen their financial portfolio. Consider different tenures to get the most out of your SBI FD investment, avail senior citizen benefits and capitalize on tax deductions.