If you’re looking for a safe, steady, and guaranteed return on your money, the SBI Fixed Deposit (FD) scheme could be a great option. Recently, the State Bank of India (SBI) has highlighted how investing ₹2 lakh in their FD scheme can fetch you a guaranteed profit of ₹32,044, depending on tenure and interest rates.
SBI Savings Scheme (2024–25)
| Feature | Details |
|---|---|
| Scheme Name | SBI Term Deposit (Fixed Deposit) |
| Minimum Investment | ₹1,000 |
| Investment Example | ₹2,00,000 |
| Estimated Return on ₹2 lakh (2 Years) | ₹32,044 |
| Interest Rate (General Citizens) | Up to 7.00% per annum |
| Interest Rate (Senior Citizens) | Up to 7.50% per annum |
| Payout Type | Cumulative (Quarterly Compounded) |
| Tax Benefit | Up to ₹1.5 lakh under Section 80C (Tax Saver FD only) |
| Loan Facility | Yes, up to 90% of deposit amount |
| How to Apply | Online via SBI Internet Banking or SBI YONO app |
The SBI Fixed Deposit scheme is an ideal choice for conservative investors who prefer stability, predictability, and safety. With guaranteed returns of ₹32,044 on an investment of ₹2 lakh over 2 years, this scheme proves to be a reliable savings tool for both salaried individuals and retirees.
By understanding interest rates, taxation, and payout options, you can make informed choices and align your FD investment with your financial goals. Whether you’re saving for a short-term goal or planning a stress-free retirement, SBI FD has you covered.
Why SBI FD Is Trending Again in 2025
After several years of low interest returns, Indian banks have started raising FD rates, and SBI—India’s largest public sector bank—has stayed competitive. As of April 2025, the bank is offering up to 7.00% interest for general citizens and 7.50% for senior citizens for certain tenures.
This is a great time to lock in attractive rates before future interest rate corrections, especially if you’re planning medium-term savings goals like:
- Child’s education in 2–3 years
- Buying a vehicle or home renovation
- Creating a secure emergency fund
see also: Want to Invest in FD? These Banks Are Giving the Highest Returns on 3-Year FD
How You Can Earn ₹32,044 from ₹2 Lakh in SBI FD
Let’s break this down with an actual example.
Scenario: General Citizen
- Amount Invested: ₹2,00,000
- Tenure: 2 Years
- Interest Rate: 7.00% per annum (compounded quarterly)
- Maturity Amount: ₹2,32,044
- Profit/Earnings: ₹32,044
Scenario: Senior Citizen
- Interest Rate: 7.50% per annum
- Maturity Amount: ₹2,34,547
- Profit/Earnings: ₹34,547
So, if you’re a senior citizen, you can earn even more without doing anything extra—just by choosing the right tenure.
Tip: Always opt for the “reinvestment option” or “cumulative payout” to maximize earnings. That way, your interest is reinvested every quarter, and you get the full benefit of compounding.
Who Should Invest in This SBI FD Scheme?
This scheme is ideal for:
- Risk-averse investors who prefer guaranteed returns
- Retirees/senior citizens looking for regular income or lump sum maturity
- Salaried individuals planning for short to medium-term savings
- Parents saving for their child’s tuition fees or other expenses
SBI’s reputation as a trustworthy bank backed by the Government of India makes this scheme a safe choice for both beginners and experienced investors.
Features That Make SBI FD Stand Out
Flexibility in Tenure
You can choose to invest for as short as 7 days or as long as 10 years, depending on your goals.
Attractive Senior Citizen Rates
Additional 0.50% interest for citizens aged 60 and above, giving them better returns and financial security.
Loan Against FD
Need emergency funds? You can get up to 90% loan against your FD, so your investment keeps earning while you meet your needs.
Nomination Facility
Ensure your loved ones receive the amount even in your absence.
Automatic Renewal
You don’t have to worry about missing renewal dates—opt for auto-renewal to keep growing your funds.
Special FD: The Time Limit for Special FD of These Banks Is Ending Soon, Better Rates Are Available
How to Open an SBI Fixed Deposit Account
Step 1: Choose the Method
You can open an FD either:
- Online via SBI NetBanking or YONO App
- Offline by visiting your nearest SBI branch with KYC documents
Step 2: Choose the Type
- Cumulative FD (Reinvestment Plan): Earn interest at maturity
- Non-Cumulative FD: Monthly/quarterly interest payout
Step 3: Enter Investment Details
Select deposit amount, tenure, interest payout type, and nominee details.
Step 4: Submit and Confirm
Review your selection and submit. Your FD certificate or deposit confirmation will be issued instantly.
What About Tax on SBI FD Returns?
Interest earned from FDs is fully taxable under “Income from Other Sources.” Here’s what you need to know:
- TDS Applicable: If interest exceeds ₹40,000/year (₹50,000 for senior citizens)
- Rate: 10% TDS if PAN is provided, 20% if not
- Save Tax: Invest in SBI’s 5-year Tax Saver FD and claim up to ₹1.5 lakh under Section 80C
Use Form 15G/15H to avoid TDS if your total income is below taxable limits.
Tips to Maximize Your FD Returns
- Ladder Your FD: Split ₹2 lakh into 4 FDs of ₹50,000 each with different tenures—this provides better liquidity and return management.
- Compare With Post Office Schemes: While Post Office Time Deposits offer similar returns, SBI offers better liquidity and online management.
- Reinvest Interest: Always go for quarterly compounding for the power of compounding to work in your favor.
see also: How to Invest in SCSS? How Much Return Will Senior Citizens Get?
SBI Savings Scheme FAQs
What is the minimum deposit for SBI FD?
₹1,000 is the minimum you can invest in an SBI fixed deposit.
Is SBI FD safe?
Yes. SBI is India’s largest public sector bank, and your deposits up to ₹5 lakh are also insured by DICGC.
Can I break the FD early?
Yes, but premature withdrawal may result in a penalty of 0.50% to 1% on the interest rate.
Can I open this FD online without visiting the branch?
Absolutely. Use SBI NetBanking or the YONO app for quick and easy investment.
How often is the interest paid on SBI FD?
You can choose monthly, quarterly, or cumulative (at maturity) interest payouts based on your need.
What’s better—SBI FD or Mutual Fund SIP?
If you seek guaranteed, risk-free returns, FD is better. But if you’re okay with market risk and want higher potential returns, SIP in mutual funds may suit you better.
