Fixed Deposits (FDs) have always been a popular investment choice in India, offering security and assured returns. One of the most trusted banks in the country, the State Bank of India (SBI), provides competitive interest rates on its FD schemes. If you’re wondering how much return you’ll get on depositing Rs 5 lakh in an SBI FD, this guide will break down the expected earnings based on different tenures and interest rates.
SBI FD Scheme
| Feature | Details |
|---|---|
| Bank Name | State Bank of India (SBI) |
| Deposit Amount | Rs 5 Lakh |
| Interest Rates | 6.50% – 7.75% (varies by tenure & senior citizen benefits) |
| Maturity Period | 1 year to 5 years or more |
| Total Interest Earned (Approx.) | Rs 34,876 (1 year) to Rs 2,24,974 (5 years, senior citizen) |
| Official Website | SBI Official Website |
SBI Fixed Deposits offer security, stable returns, and flexible tenures, making them an excellent choice for risk-averse investors. If you deposit Rs 5 lakh, you can earn up to Rs 2,24,974 in interest over 5 years (for senior citizens). While FDs are safe, consider diversifying your investments to maximize your wealth.
Understanding SBI Fixed Deposit (FD) Interest Rates
SBI offers different FD interest rates based on the deposit tenure and the depositor’s age. Senior citizens enjoy higher interest rates compared to general depositors. Here’s a look at the latest SBI FD interest rates:
SBI FD Interest Rates for General Citizens (As of 2025)
- 1 Year FD: 6.80% p.a.
- 3 Years FD: 6.75% p.a.
- 5 Years FD: 6.50% p.a.
SBI FD Interest Rates for Senior Citizens (As of 2025)
- 1 Year FD: 7.30% p.a.
- 3 Years FD: 7.25% p.a.
- 5 Years FD: 7.50% p.a.
see also: Post Office Scheme If you deposit ₹ 36 thousand, you will get more than 9 lakh rupees
How Much Return Will You Get on Rs 5 Lakh in SBI FD?
Scenario 1: 1-Year Fixed Deposit
- General Citizens
- Interest Rate: 6.80% p.a.
- Maturity Amount: Rs 5,34,876
- Total Interest Earned: Rs 34,876
- Senior Citizens
- Interest Rate: 7.30% p.a.
- Maturity Amount: Rs 5,37,511
- Total Interest Earned: Rs 37,511
Scenario 2: 3-Year Fixed Deposit
- General Citizens
- Interest Rate: 6.75% p.a.
- Maturity Amount: Rs 6,11,196
- Total Interest Earned: Rs 1,11,196
- Senior Citizens
- Interest Rate: 7.25% p.a.
- Maturity Amount: Rs 6,20,273
- Total Interest Earned: Rs 1,20,273
Scenario 3: 5-Year Fixed Deposit
- General Citizens
- Interest Rate: 6.50% p.a.
- Maturity Amount: Rs 6,90,209
- Total Interest Earned: Rs 1,90,209
- Senior Citizens
- Interest Rate: 7.50% p.a.
- Maturity Amount: Rs 7,24,974
- Total Interest Earned: Rs 2,24,974
How to Open an SBI FD Online?
Opening a Fixed Deposit with SBI is simple and can be done both online and offline.
Step-by-Step Guide to Open an SBI FD Online:
- Login to SBI Net Banking
- Visit SBI Internet Banking and log in with your credentials.
- Go to Fixed Deposit Section
- Navigate to “Fixed Deposit” under the Deposit tab.
- Select FD Type
- Choose “Term Deposit” and select the tenure.
- Enter Deposit Amount
- Input Rs 5 lakh (or your preferred amount).
- Choose Interest Payout Option
- Select between cumulative (reinvestment) or non-cumulative (monthly/quarterly payout) options.
- Confirm and Submit
- Review the details and confirm your FD investment.
Tax Implications on SBI FD Returns
- TDS (Tax Deducted at Source): If your interest earnings exceed Rs 40,000 per year (Rs 50,000 for senior citizens), SBI deducts 10% TDS.
- Form 15G/15H: Submit this form if your total income is below the taxable limit to avoid TDS.
- Tax Benefits: Under Section 80C, deposits in 5-year SBI FD qualify for tax deductions up to Rs 1.5 lakh.
see also: This is how you will get 3 times return in FD?
SBI FD Scheme FAQs
1. Can I break my SBI FD before maturity?
Yes, but premature withdrawal may attract a penalty of 0.5% – 1% depending on the FD tenure.
2. Is SBI FD better than investing in mutual funds?
SBI FD offers guaranteed returns, while mutual funds are market-linked and carry higher risk. If you prefer safety and fixed earnings, SBI FD is a good choice.
3. Can I take a loan against my SBI FD?
Yes, SBI offers loans up to 90% of your FD value, which can be helpful in emergencies without breaking your FD.
4. How can senior citizens get the best FD rates in SBI?
Senior citizens get an extra 0.50% interest rate on FD deposits. SBI also offers exclusive FD schemes like SBI WeCare FD for senior citizens.
5. Is it safe to invest Rs 5 lakh in SBI FD?
Yes, SBI is India’s largest public sector bank, and its FDs are insured up to Rs 5 lakh by DICGC, making it one of the safest investment options.
