SBI Fixed Deposit: How Much to Invest for Rs 31,990 Interest in One Year?

Investing in a Fixed Deposit (FD) is a smart and secure way to grow your money. If you’re wondering how much you need to invest in State Bank of India (SBI) FDs to earn an interest of Rs 31,990 in one year, you’re in the right place. This article will break it down step by step, helping you understand how FD interest works, how to calculate your investment amount, and the benefits of SBI’s FD schemes.

SBI Fixed Deposit

Key Details	Information
Bank	State Bank of India (SBI)
Target Interest	Rs 31,990
Tenure	1 year
Estimated Investment	Rs 4,92,154 (at 6.5% interest rate)
Interest Rate	Varies from 6.5% to 7.25%
Senior Citizen Benefit	Additional 0.50% interest
Official SBI Website	SBI FD Rates

If you aim to earn Rs 31,990 in interest from an SBI Fixed Deposit in one year, you need to invest approximately Rs 4.92 lakh at an interest rate of 6.5%. SBI offers various FD schemes with competitive interest rates, making it a safe and profitable investment option. To maximize returns, choose a high-interest FD plan and ensure tax efficiency.

Understanding SBI Fixed Deposits

A Fixed Deposit (FD) is a popular savings option where you deposit a lump sum amount in a bank for a fixed period at a predetermined interest rate. At the end of the tenure, you receive your principal amount along with the accumulated interest.

How FD Interest is Calculated?

The formula for FD interest calculation is:

A=P×(1+r/n)ntA = P \times (1 + r/n)^{nt}

Where:

A = Maturity Amount
P = Principal Amount
r = Annual Interest Rate (in decimal)
n = Number of times interest is compounded per year
t = Number of years

For a 1-year FD, most banks follow simple interest or quarterly compounding.

see also: Post Office Scheme Earn ₹1,62,728

How Much to Invest to Earn Rs 31,990 Interest?

To calculate the investment required to earn Rs 31,990 in interest, we reverse-calculate using SBI’s estimated interest rates.

Example Calculation (Assuming 6.5% Interest Rate)

Interest Rate: 6.5% per annum
Time: 1 year
Simple Interest Formula: SI = (P × R × T) / 100

31,990=(P×6.5×1)/10031,990 = (P × 6.5 × 1) / 100 P=(31,990×100)/6.5P = (31,990 × 100) / 6.5 P=Rs4,92,154P = Rs 4,92,154

So, to earn Rs 31,990 in interest in one year, you need to invest approximately Rs 4.92 lakh.

Note: SBI offers different FD schemes with rates ranging from 6.5% to 7.25%, affecting the exact investment amount.

Best SBI FD Schemes for Higher Returns

SBI offers multiple FD schemes to suit different investment goals. Here are some options:

1. SBI Regular Fixed Deposit

Interest Rate: 6.5% per annum
Minimum Investment: Rs 1,000
Tenure: 7 days to 10 years
Suitable for: General investors looking for steady returns.

2. SBI Amrit Kalash FD

Interest Rate: 7.10% (7.60% for seniors)
Tenure: 400 days
Benefit: Higher interest rate for short-term investments.

3. SBI WeCare FD (For Senior Citizens)

Interest Rate: 7.50%
Tenure: 5 to 10 years
Benefit: Extra 0.50% interest for senior citizens.

How to Open an SBI FD Online?

Opening an SBI Fixed Deposit is quick and hassle-free. Follow these simple steps:

Step 1: Log in to SBI Net Banking

Go to SBI Online and log in with your credentials.

Step 2: Select ‘Fixed Deposit’

Under the deposits section, choose ‘Fixed Deposit’ and click ‘Open FD’.

Step 3: Enter Deposit Details

Enter the investment amount (e.g., Rs 4,92,154)
Select the tenure (1 year)
Choose interest payout frequency (monthly, quarterly, yearly)

Step 4: Confirm & Submit

Review the details and confirm the FD creation. You will receive a confirmation via SMS and email.

Tax Implications on SBI FD Interest

TDS (Tax Deducted at Source): If FD interest exceeds Rs 40,000 per year (Rs 50,000 for seniors), SBI deducts 10% TDS.
Form 15G/15H: If your income is below the taxable limit, submit Form 15G (for individuals) or 15H (for seniors) to avoid TDS.

Tip: Invest in multiple FDs below Rs 40,000 interest each to avoid TDS deduction.