3 DAYS LEFT! SBI's Special FD Scheme To End On Independence Day, Senior Citizens Get 7.60% Rate

With India set to celebrate 77 years of independence on August 15, investors looking for risk-free and guaranteed returns on their lumpsum money would not want to miss out on the special fixed deposit scheme offered by the leading PSU bank, State Bank of India (SBI). The bank is offering up to 7.60% interest rate under its scheme Amrit Kalash which is scheduled to end on August 15, 2023.

Both general category and senior citizens get to earn higher FD rates than compared to normal FDs.

On its website, SBI said, "The specific tenor scheme of "400 days" (Amrit Kalash) at Rate of Interest of 7.10 % w.e.f. 12- April- 2023. Senior Citizens are eligible for a rate of interest of 7.60%. The Scheme will be valid till 15-August-2023."

Hence, the tenure for this special FD offer is 400 days, giving a 7.10% rate to the general category and 7.60% to senior citizens.

The annualised yield on this 400-day FD is 7.29% for the general category and a whopping 7.82% for elderlies.

The interest rates are compounded quarterly.

SBI's normal FD rates vary from 3% to as high as 7% for the general public. The rates are higher in the range of 3.50% to 7.50% for senior citizens. The minimum tenure is 7 days while the maximum period is up to 10 years.

After the Amrit Kalash scheme FD rates, SBI offers 7% to the general public and 7.50% to senior citizens on 2 years to less than 3 years tenures. Senior citizens also get to earn a 7.50% rate on 5 years and up to 10 years of tenure.

Apart from this, SBI also has a scheme 'Sarvottam (Non-Callable) Domestic Retail Term Deposits' where the minimum FD starts above Rs 15 lakh to less than Rs 2 crore. Here, SBI offers 7.10% for 1-year and 7.40% for 2-year tenure to the general public, while senior citizens get a massive 7.60% on 1-year and 7.90% on 2-year maturities.

In simple words, non-callable deposits are invested surplus funds for a long period without the option of premature withdrawal. Also, an overdraft facility is not allowed.

Fixed deposits are the most traditional and common investment scheme that is offered by financial institutions, especially banks. FDs are one of the main mediums of bank deposits book. But with time as capital market instruments have gained popularity, our investment mechanisms have diverse eventually.

But FDs remain a one-stop investment platform for investors who are not willing to bear risks and volatility. FDs in simple words are safe, risk-free and offer guaranteed interest rates. Senior citizens majorly benefit from FD schemes as banks offer them higher interest rates than compared to normal categories.

During the June 2023 quarter, SBI reported a net profit of Rs 16,884 crore, rising by 178.25% YoY or 2.78 times from a PAT of Rs 6,068 crore in the same quarter a year ago. Net Interest Income (NII) for Q1FY24 increased by 24.71% YoY, while domestic NIM for the quarter increased by 24 bps YoY to 3.47%.