When it comes to safe and rewarding investments, State Bank of India (SBI) is often the first name that comes to mind. Recently, SBI Bank has launched a special fixed deposit scheme offering tremendous interest on 444 days, making it a fantastic option for investors looking to grow their savings securely. This new FD scheme, called the SBI Amrit Vrishti Fixed Deposit, is generating quite a buzz for its attractive interest rates and limited-time availability.
SBI 444 Days Fixed Deposit Scheme
| Feature | Details |
|---|---|
| Scheme Name | SBI Amrit Vrishti Fixed Deposit |
| Tenure | 444 days |
| Interest Rate (General Public) | 7.25% per annum |
| Interest Rate (Senior Citizens) | 7.75% per annum |
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | Less than ₹3 crore |
| Availability Period | July 15, 2024, to March 31, 2025 |
| Eligible Accounts | New and renewal Domestic Retail Term Deposits, NRI Rupee Term Deposits |
| Exclusions | MODs, Tax Saving FDs, Recurring Deposits, Annuity Deposits, Capital Gains Scheme |
| Loan Facility | Available |
| Premature Withdrawal | Allowed (Penalty applicable: 0.50%-1% depending on deposit size) |
| Official Website | SBI Official Website |
The SBI Bank’s 444 Days Fixed Deposit Scheme (Amrit Vrishti FD) is an excellent opportunity for those looking to lock in high returns without the risks of market volatility. With interest rates of 7.25%-7.75%, backed by India’s largest public sector bank, it’s ideal for both conservative savers and professional investors.
What is the SBI Amrit Vrishti FD Scheme?
The SBI Amrit Vrishti Fixed Deposit Scheme is a special term deposit plan offering a higher-than-usual interest rate of up to 7.75% for senior citizens and 7.25% for the general public. What sets this scheme apart is its fixed tenure of 444 days – slightly over a year – designed to deliver attractive returns without locking in your money for too long.
Introduced as part of SBI’s commitment to offer better returns to its customers, the scheme is available only for a limited period from July 15, 2024, to March 31, 2025.
see also: LIC FD Gives 16% Guaranteed Return
Why Choose SBI’s 444 Days Fixed Deposit?
Here’s why this FD stands out:
1. Higher Interest Rates Compared to Regular FDs
While the standard SBI fixed deposit rates range between 6.5% and 7.1%, the Amrit Vrishti FD bumps up the rate to 7.25% for regular depositors and 7.75% for senior citizens. This rate competes strongly with private banks and small finance banks while providing the trust and safety of SBI.
2. Short Tenure, Big Returns
A 444-day tenure is ideal for investors who want to grow their savings without committing to long-term deposits. It’s long enough to benefit from higher rates yet short enough to maintain liquidity.
3. Loan Facility
Need emergency funds? SBI allows loans against this FD, helping you avoid breaking your FD prematurely while still meeting urgent financial needs.
How to Open SBI Amrit Vrishti Fixed Deposit
Investing in this scheme is super simple. Here’s how you can do it:
1. Through SBI Net Banking
- Log in to your SBI Internet Banking account.
- Go to ‘Fixed Deposit’ > ‘Open Fixed Deposit’.
- Choose SBI Amrit Vrishti FD (444 days).
- Enter your deposit amount (minimum ₹1,000).
- Confirm details and submit.
2. Using SBI YONO Mobile App
- Log in to YONO SBI.
- Tap on ‘Deposits’ > ‘Fixed Deposits’ > ‘Open FD’.
- Select Amrit Vrishti Fixed Deposit (444 days).
- Enter required details, confirm, and complete.
3. Visiting SBI Branch
- Visit your nearest SBI branch.
- Fill out the FD application form specifying Amrit Vrishti Scheme (444 days).
- Submit documents and make the deposit.
Practical Example: How Much Will You Earn?
Let’s calculate:
| Details | Amount |
|---|---|
| Deposit Amount | ₹1,00,000 |
| Tenure | 444 days |
| Interest Rate (General) | 7.25% |
| Interest Earned | Approx. ₹8,800 |
| Maturity Amount | ₹1,08,800 |
Senior citizens depositing the same amount at 7.75% will earn approximately ₹9,400 in interest, totaling ₹1,09,400 at maturity.
Taxation on SBI Fixed Deposit Interest
While SBI’s 444 days FD offers high returns, remember that interest income from FDs is taxable. It is added to your total income and taxed according to your slab rate.
However, under Section 80C of the Income Tax Act, 5-year Tax Saving FDs offer tax benefits—but unfortunately, the Amrit Vrishti FD scheme is not eligible under this section.
If your total interest income exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, TDS (Tax Deducted at Source) will be applied at 10%. To avoid unnecessary TDS, you can submit Form 15G/15H if eligible.
Who Should Invest in SBI’s 444 Days FD?
- Senior Citizens: The 7.75% interest rate is very attractive, offering better returns with minimal risk.
- Conservative Investors: If you prefer security over riskier assets like stocks or mutual funds, this FD is a solid choice.
- Short-Term Savers: Planning to use the funds in 1.5 years? This FD is perfect for such short-to-mid-term goals.
see also: These Are the Best Tax-Saving FDs Which Can Reduce Your Income Tax Liability
SBI 444 Days Fixed Deposit Scheme FAQs
1. What is the minimum deposit amount for SBI 444 days FD?
The minimum deposit required is ₹1,000.
2. Can NRIs invest in the SBI Amrit Vrishti FD scheme?
Yes, NRI Rupee Term Deposits are eligible under this scheme.
3. Is premature withdrawal allowed?
Yes, but SBI levies penalties:
- 0.50% penalty for deposits up to ₹5 lakh.
- 1% penalty for deposits above ₹5 lakh and below ₹3 crore.
4. How is the interest paid?
Interest is compounded quarterly and paid at maturity or as per chosen payout option.
5. Where can I apply online?
You can apply via SBI Net Banking or the YONO SBI App.
