SBI Scheme: If you are looking for a solid option to double your 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 percent to 7 percent annual interest to customers 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 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 Rs 10 lakh in a 10-year FD in SBI. According to the SBI FD Calculator, the investor will get a total of Rs 19,05,559 on maturity at an interest rate of 6.5 percent per annum. This will give a fixed income of Rs 9,05,559 from interest. That is, your deposit amount will almost double.
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On the other hand, a senior citizen deposits Rs 10 lakh in a 10-year FD of SBI. According to the SBI FD Calculator, the senior citizen will get a total of Rs 21,02,349 on maturity at an interest rate of 7.5 percent per annum. This will give a fixed income of Rs 21,02,349 from interest. That is, your deposit amount will more than double.
SBI FDs: Interest earnings will be taxed
Bank FDs are generally considered safe. This is a good option for investors who do not take risk. 5-year tax saving FDs are eligible for tax exemption under Section 80C. However, the interest earned on FDs is taxable.
According to the Income Tax Rules, Tax Deduction at Source (TDS) is applicable on FD scheme. That is, the amount received on maturity of FD will be considered as your income and you will have to pay tax as per the slab rate. To get exemption from tax deduction, the depositor can submit Form 15G/15H.
