Are you looking for a safe and smart way to grow your savings? SBI’s 1-Year FD scheme promising an interest return of ₹31,990 might just be the opportunity you’ve been searching for! Whether you’re a first-time saver or a seasoned investor, the State Bank of India’s Fixed Deposit (FD) schemes offer a reliable way to earn attractive returns, without taking market risks.
In this article, we’ll break down SBI’s latest FD scheme in simple, easy-to-understand terms. You’ll learn how it works, who can benefit, how much you need to invest to earn ₹31,990 interest, and expert tips to maximize returns.
SBI’s ₹31,990 Interest in 1 Year FD Scheme
| Details | Information |
|---|---|
| Bank Name | State Bank of India (SBI) |
| FD Tenure | 1 Year (specifically SBI’s Amrit Kalash – 400 days scheme) |
| Interest Rate | General Public: 7.10% p.a.Senior Citizens: 7.60% p.a. |
| Interest Earned | ₹31,990 approx. |
| Investment Required | Around ₹4,00,000 – ₹4,50,000 (depending on applicable interest rate & tenure) |
| Scheme Validity | Available till March 31, 2025 |
SBI’s 1-Year FD scheme offering ₹31,990 interest is an excellent choice for anyone seeking guaranteed, risk-free returns. Whether you’re a young investor, a retiree, or a professional, this scheme provides a balance of safety, decent returns, and flexibility. With competitive rates, government backing, and senior citizen benefits, SBI stands tall as a trusted financial partner.
Why SBI FDs Are Trusted by Millions
SBI, being India’s largest public-sector bank, has always been a top choice for safe, secure, and consistent returns. The SBI Fixed Deposit (FD) product is particularly popular because:
- Guaranteed Returns: Unlike stock markets, your returns don’t fluctuate.
- Senior Citizen Benefits: Higher interest rates (up to 7.60%) for individuals aged 60 and above.
- Flexible Tenures: From 7 days to 10 years.
- Liquidity Options: Premature withdrawals and loan facilities available.
Fun fact: As per SBI’s annual report, more than ₹14 lakh crore is deposited in term deposits (FDs), showing the sheer trust of customers.
see also: Section 43B of the Income Tax Act
SBI’s Special Amrit Kalash FD Scheme – How It Works
In 2025, SBI reintroduced its Amrit Kalash FD scheme, offering 7.10% p.a. for regular customers and a whopping 7.60% p.a. for senior citizens. The scheme specifically runs for 400 days, slightly more than a year but designed to help investors maximize short-term returns.
How much do you need to invest to earn ₹31,990 interest?
Let’s break it down with an example:
| Customer Type | Interest Rate | Investment Amount | Interest Earned in 1 Year (Approx.) |
|---|---|---|---|
| Regular Customer | 7.10% | ₹4,50,000 | ₹31,950 |
| Senior Citizen | 7.60% | ₹4,20,000 | ₹31,920 |
Note: The exact interest may vary slightly based on compounding frequency and TDS deductions.
How to Open an SBI FD & Get ₹31,990 Interest
Opening an FD with SBI is super simple! Here’s how:
Step 1: Check Eligibility
- Must be an Indian resident (18+ years)
- Can also be opened in the name of minors, jointly, or under senior citizen category
Step 2: Choose FD Type
- Choose the Amrit Kalash scheme (400 days) for maximum benefit.
- Other FD types are also available if you prefer different tenure or flexibility.
Step 3: Decide the Investment Amount
- To get ₹31,990, invest around ₹4 to ₹4.5 lakh depending on your category (senior/regular).
Step 4: Visit Branch or Use SBI Net Banking/YONO App
- Offline: Walk into any SBI branch with ID proof, PAN, and address proof.
- Online: Log in to SBI’s NetBanking portal or SBI YONO App.
Step 5: Select Tenure & Nominee
- Choose 400 days and opt for cumulative (compounded) interest or periodic payouts.
- Add nominee details.
Step 6: Review, Confirm & Deposit
Taxation on SBI FD Returns – Know Before You Invest!
While earning ₹31,990 sounds great, keep in mind:
- TDS (Tax Deducted at Source): 10% on interest above ₹40,000 (₹50,000 for senior citizens) in a financial year.
- To avoid TDS, submit Form 15G/15H if you are eligible (low income/no tax liability).
Pro Tips to Maximize Returns
- Split Deposits: Use the ₹40,000 TDS threshold smartly by splitting FDs across family members.
- Use Cumulative FD Option: Reinvest interest to compound returns, especially if you don’t need monthly payouts.
- Senior Citizens: Always mention your status to avail extra 0.50% interest rate.
- Premature Withdrawal Penalty: Plan wisely to avoid breaking your FD before maturity, as penalties apply.
see also: Post Office Monthly Income Scheme (POMIS) A Safe Alternative to SIP
Why Choose SBI Over Private Banks for FD?
| Feature | SBI FD | Private Bank FD |
|---|---|---|
| Safety | Backed by Govt., Highly Secure | Varies, subject to bank strength |
| Interest Rates | Competitive (7.10%-7.60%) | Slightly higher but riskier |
| Branch Network | 22,000+ branches nationwide | Limited in rural areas |
| Senior Citizen Benefits | Additional 0.50% interest | Depends on bank policy |
SBI’s Amazing Scheme FAQs
1. Is SBI’s ₹31,990 interest offer available for NRI customers?
No, the scheme is available only for Indian residents.
2. Can I close my FD before 1 year?
Yes, but SBI charges a premature withdrawal penalty, typically 0.50% to 1% lower rate.
3. How is the interest paid – monthly or yearly?
You can choose cumulative (paid at maturity) or periodic (monthly/quarterly/yearly) payouts while opening.
4. Is there any minimum deposit requirement?
Minimum deposit starts from ₹1,000, but to get ₹31,990, you’ll need approx. ₹4-4.5 lakh investment.
5. What is the last date to invest in Amrit Kalash FD?
The scheme is available till March 31, 2025.
