Looking for a safe and guaranteed way to grow your savings? The SBI Fixed Deposit Scheme is one of the most trusted investment options in India. And if you’re aiming for a return of ₹4,83,147 in 5 years, the good news is—it’s entirely possible. But the real question is: how much do you need to invest today to get there?
In this article, we break down everything you need to know—from the investment amount, interest rates, how SBI FDs work, to tips on maximizing returns. Whether you’re a first-time investor or a seasoned saver, this guide will help you make smarter financial choices.
SBI Fixed Deposit Scheme – ₹4.83 Lakh in 5 Years
| Feature | Details |
|---|---|
| Bank Name | State Bank of India (SBI) |
| Scheme | Fixed Deposit (FD) |
| Maturity Amount Targeted | ₹4,83,147 |
| Time Period | 5 Years |
| Interest Rate (General Public) | 6.50% p.a. (Compounded quarterly) |
| Interest Rate (Senior Citizens) | 7.00% p.a. |
| Required Investment | Approx. ₹3,52,000 |
| Compounding Frequency | Quarterly |
| Minimum Deposit | ₹1,000 |
The SBI Fixed Deposit Scheme is a great option if you’re looking for stable, low-risk returns. As we’ve shown, investing ₹3.52 lakh today can fetch you a tidy sum of ₹4.83 lakh in just 5 years. It’s ideal for retirement planning, education goals, or simply building your financial cushion. With quarterly compounding, attractive interest rates, and backed by SBI’s trust, this FD is definitely worth considering.
What Is an SBI Fixed Deposit?
A Fixed Deposit (FD) is a financial tool where you deposit a lump sum amount with a bank for a fixed tenure. In return, the bank pays you interest, which is either compounded or paid out regularly. SBI’s FD is a risk-free, low-maintenance investment trusted by millions.
It’s especially popular among retired individuals, salaried professionals, and parents planning for children’s education or marriage—thanks to its predictable returns and safety.
see also: Understanding Fixed Deposits 2025
How Does the SBI FD Work?
When you invest in an SBI FD:
- You choose a tenure (from 7 days to 10 years).
- Interest gets compounded quarterly.
- You receive your principal + interest at the end of the term (unless you opt for monthly/quarterly payouts).
Let’s break down the calculation.
How Much to Invest for ₹4,83,147 in 5 Years?
To reach a maturity amount of ₹4.83 lakh in 5 years, you must invest a certain lump sum upfront. Here’s how the math works:
Compound Interest Formula: A=P×(1+rn)n×tA = P \times \left(1 + \frac{r}{n}\right)^{n \times t}
Where:
- A = Maturity Amount (₹4,83,147)
- P = Principal (amount to invest)
- r = Annual interest rate (6.50% or 0.065)
- n = Compounding periods per year (4 for quarterly)
- t = Time in years (5)
Solving the equation:
P=₹4,83,147(1+0.065/4)4×5=₹4,83,1471.372786P = \frac{₹4,83,147}{(1 + 0.065/4)^{4 \times 5}} = \frac{₹4,83,147}{1.372786} P≈₹3,52,000P ≈ ₹3,52,000
So, investing ₹3,52,000 today in an SBI FD for 5 years at 6.5% annual interest will give you approximately ₹4.83 lakh on maturity.
Note: If you’re a senior citizen, you’ll earn more due to a higher interest rate (7%), and will need to invest slightly less—around ₹3.44 lakh.
SBI FD Interest Rates – April 2025 (Latest)
According to SBI’s official website and Paisabazaar FD rate tracker, here are the current interest rates:
| Tenure | General Public | Senior Citizens |
|---|---|---|
| 1 year to < 2 years | 6.80% | 7.30% |
| 2 years to < 3 years | 7.00% | 7.50% |
| 3 years to < 5 years | 6.75% | 7.25% |
| 5 years to 10 years | 6.50% | 7.00% |
Why Choose SBI FD?
Here’s why this scheme is a solid choice:
- 100% capital protection (backed by RBI regulations)
- Guaranteed returns without market risks
- Flexible tenures (7 days to 10 years)
- Loan facility available against FDs
- Tax-saving option (5-year Tax Saver FD under Section 80C)
How to Open an SBI Fixed Deposit
Opening an FD with SBI is super simple. Here’s how you can do it:
Income Tax: How Much Tax Will Be Levied on an Income of 14 Lakhs? Complete Calculation Explained
Online (via SBI YONO or Net Banking)
- Log in to your SBI net banking or YONO app.
- Go to “Fixed Deposit” under Accounts.
- Choose ‘e-TDR’ or ‘e-STDR’.
- Enter the amount, tenure, and payout preference.
- Confirm with OTP.
Done! Your FD is instantly created.
Offline (at SBI branch)
- Visit your nearest SBI branch.
- Fill the FD application form.
- Submit your KYC documents (PAN, Aadhaar, etc.).
- Deposit the investment amount.
Tax Implications on SBI FD
Interest earned on FDs is taxable under “Income from Other Sources.” If interest exceeds ₹40,000 (₹50,000 for senior citizens), TDS at 10% is deducted.
Pro Tip: Submit Form 15G/15H if your income is below taxable limits to avoid TDS.
Tips to Maximize FD Returns
- Opt for quarterly compounding instead of monthly payout.
- Senior citizens should use special FD schemes with 0.50% higher interest.
- Don’t break your FD before maturity—it leads to penalty charges.
- Ladder your investments across multiple tenures to stay liquid and earn better.
see also: HDFC and Yes Bank Changed the Fixed Deposit Interest Rate
SBI Fixed Deposit Scheme FAQs
Q1. Is SBI FD safe for long-term investment?
Yes. SBI is a government-owned bank and FDs are insured up to ₹5 lakh under DICGC protection.
Q2. Can I get monthly income from SBI FD?
Absolutely. Choose the monthly interest payout option (STDR) while booking your FD.
Q3. What if I break my FD early?
You’ll get your money, but a premature withdrawal penalty of 0.50%–1% will apply.
Q4. Can I take a loan against my FD?
Yes. SBI offers up to 90% of your FD amount as a loan at a nominal interest.
Q5. Is TDS applicable on all FDs?
TDS applies if annual interest exceeds ₹40,000 (₹50,000 for seniors). Submit Form 15G/15H if not taxable.
