SBI Amrit Kalash FD: 8.6% Interest Rate, How Much Benefit Will Investors Get?

If you’re searching for a secure and rewarding fixed deposit scheme, chances are you’ve come across the SBI Amrit Kalash FD. Many headlines mention an 8.6% interest rate—but how much actual benefit will you receive? Whether you’re a young investor or a seasoned financial planner, understanding how this FD works is essential.

In this detailed guide, we’ll break down everything about the SBI Amrit Kalash FD, including interest rates, maturity benefits, eligibility, how much you can earn, and how it compares to others in the market.

SBI Amrit Kalash FD 2025

Feature	Details
Scheme Name	SBI Amrit Kalash FD
Interest Rate (General)	7.10% p.a.
Interest Rate (Senior Citizens)	7.60% p.a.
Tenure	400 days
Compounding Frequency	Quarterly
Minimum Deposit	₹1,000
Maximum Deposit	No upper limit
Premature Withdrawal	Allowed with penalty
Tax Benefit	Interest fully taxable under Income Tax Act
Official Website	SBI Official Website

The SBI Amrit Kalash FD is an attractive choice for risk-averse investors seeking a higher-than-usual interest rate with the backing of a trusted bank. While it doesn’t offer 8.6% returns, it still stands out with 7.10% for general investors and 7.60% for senior citizens—a solid deal in the current market.

What is SBI Amrit Kalash FD?

The SBI Amrit Kalash FD is a special term deposit scheme offered by the State Bank of India (SBI). Introduced to celebrate the Amrit Mahotsav, it offers a fixed deposit for a unique tenure of 400 days.

While some rumors suggest a whopping 8.6% interest rate, the official rates are:

7.10% p.a. for general investors
7.60% p.a. for senior citizens

These rates are quite competitive, especially when compared to regular FD rates offered by other banks.

How Much Benefit Will You Get?

Let’s break it down with an example:

For General Investors:

Principal Amount: ₹1,00,000
Interest Rate: 7.10% p.a.
Tenure: 400 days (1.095 years)
Compounding: Quarterly

Maturity Calculation:

Using compound interest formula:

A = P × (1 + r/n)^(n×t)
Where:

A = Maturity Amount
P = Principal (₹1,00,000)
r = Annual Rate (7.10% or 0.071)
n = Compounding frequency (4 times/year)
t = Time (1.095 years)

Result: Maturity Amount ≈ ₹1,08,050
Total Interest Earned: ₹8,050

For Senior Citizens:

Principal Amount: ₹1,00,000
Interest Rate: 7.60% p.a.

Maturity Calculation:

Maturity Amount ≈ ₹1,08,590
Total Interest Earned: ₹8,590

Step-by-Step Guide: How to Invest in SBI Amrit Kalash FD

Step 1: Check Eligibility

Any Indian resident can invest.
No age restriction, but senior citizens (60+) get higher rates.

Step 2: Choose Investment Mode

Online via SBI Net Banking/YONO App
Visit nearest SBI branch.

Step 3: Decide Deposit Amount

Minimum deposit starts from ₹1,000.
No maximum limit.

Step 4: Select Tenure

Fixed at 400 days.

Step 5: Submit Documents

PAN Card, Aadhaar, and address proof.

Step 6: Choose Interest Payout Option

Quarterly or cumulative (paid at maturity).

How Does SBI Amrit Kalash FD Compare to Other FDs?

Bank/Scheme	Interest Rate (General)	Interest Rate (Senior Citizens)	Tenure
SBI Amrit Kalash FD	7.10%	7.60%	400 days
HDFC Bank Special FD	7.00%	7.50%	35-55 months
ICICI Bank Golden Years FD	7.10%	7.60%	5 years & above
Bajaj Finance FD	Up to 8.60%	Up to 8.85%	42 months

Note: Always verify rates on the official websites before investing.

Pros and Cons of SBI Amrit Kalash FD

Pros	Cons
Higher interest rate compared to standard SBI FDs	No tax benefits
Safe & secure (backed by India’s largest public sector bank)	Fixed tenure; not flexible
Senior citizens enjoy additional 0.50% interest rate	Premature withdrawal attracts penalty
Easy to invest via online and offline modes	Interest fully taxable

Taxation on SBI Amrit Kalash FD

One key point to remember is that interest earned is fully taxable:

If your interest income exceeds ₹40,000 in a year (₹50,000 for senior citizens), TDS at 10% will be deducted.
Submit Form 15G/15H if your income is below taxable limits to avoid TDS.