Fixed Deposits (FDs) have long been a preferred investment option for risk-averse investors in India. The State Bank of India (SBI) offers special FD schemes that provide attractive interest rates, making them an excellent choice for those looking for a stable monthly income.
SBI Special FD: How to Earn a Monthly Return of ₹6,333
| Aspect | Details |
|---|---|
| Investment Required | ₹9,80,903 – ₹10,71,521 (depending on interest rate) |
| Interest Rate | 7.10% – 7.75% per annum |
| Monthly Return | ₹6,333 |
| Eligibility | Indian residents, senior citizens (higher rate available) |
| FD Tenure | 400 days (Amrit Kalash) or 444 days (Amrit Vrishti) |
| Tax on Interest | TDS applicable as per Income Tax Act |
SBI’s Special Fixed Deposits offer an excellent way to earn a stable monthly income. By investing around ₹9.8 lakh to ₹10.7 lakh, you can receive a guaranteed monthly payout of ₹6,333. With secure returns, senior citizen benefits, and loan options, these FDs are a reliable investment choice for risk-averse investors.
Understanding SBI Special FDs
SBI offers various fixed deposit schemes, but two special FDs currently provide higher interest rates:
1. SBI Amrit Kalash FD (400 Days)
- Interest Rate: 7.10% (General) | 7.60% (Senior Citizens)
- Tenure: 400 Days
- Minimum Deposit: ₹1,000
- Maximum Deposit: No Upper Limit
- Premature Withdrawal: Allowed with penalty
2. SBI Amrit Vrishti FD (444 Days)
- Interest Rate: 7.25% (General) | 7.75% (Senior Citizens)
- Tenure: 444 Days
- Minimum Deposit: ₹1,000
- Maximum Deposit: No Upper Limit
- Premature Withdrawal: Allowed with penalty
see also: When Do You Have to Pay Income Tax on Interest Earned on FD?
How Much Should You Invest to Earn ₹6,333 Per Month?
To earn a monthly interest payout of ₹6,333, let’s break down the investment requirement.
For General Citizens
- Amrit Kalash FD (7.10% p.a.)
- Required Investment = ₹10,71,521
- Amrit Vrishti FD (7.25% p.a.)
- Required Investment = ₹10,49,103
For Senior Citizens
- Amrit Kalash FD (7.60% p.a.)
- Required Investment = ₹9,99,474
- Amrit Vrishti FD (7.75% p.a.)
- Required Investment = ₹9,80,903
How to Open an SBI Special FD?
Opening an SBI Fixed Deposit is a simple process that can be done online or offline.
1. Online Process (via YONO App or Net Banking)
- Log in to SBI Net Banking or YONO App.
- Select “Fixed Deposit” under the Deposit section.
- Choose “Amrit Kalash FD” or “Amrit Vrishti FD”.
- Enter the investment amount and tenure.
- Select “Monthly Payout” option for interest disbursement.
- Confirm and submit your request.
2. Offline Process (Visiting SBI Branch)
- Visit the nearest SBI branch.
- Request the Fixed Deposit Form.
- Fill in your personal and financial details.
- Submit the deposit amount (via cheque or account transfer).
- Choose monthly interest payout option.
- Collect the FD receipt.
Benefits of SBI Special FDs
1. Higher Interest Rates
SBI’s special FDs offer better interest rates than regular term deposits, making them ideal for higher returns.
2. Fixed Monthly Income
By opting for the monthly payout option, you ensure a steady cash flow to manage your expenses.
3. Senior Citizen Benefits
Senior citizens get an additional 0.50% interest rate, ensuring better returns on their savings.
4. Low Risk Investment
Fixed deposits are one of the safest investment options as they are not market-linked.
5. Loan Against FD
SBI allows you to take a loan of up to 90% of your FD amount, ensuring liquidity when needed.
Things to Keep in Mind Before Investing
1. Tax Deduction on Interest (TDS)
- If your annual interest income exceeds ₹40,000 (₹50,000 for senior citizens), TDS (Tax Deducted at Source) of 10% is applicable.
- Submit Form 15G/15H to avoid TDS deduction (if your total income is below the taxable limit).
2. Premature Withdrawal Penalty
- SBI charges a penalty of 0.50% – 1% for withdrawing FD before maturity.
- Consider this before opting for early withdrawal.
3. Reinvestment Option
- Instead of a monthly payout, you can opt for compounding interest, which yields higher returns at maturity.
see also: SBI Fixed Deposit: Earn Rs 21,02,350 on Rs 10 Lakh
SBI Special FD FAQs
1. Can I withdraw my FD before maturity?
Yes, SBI allows premature withdrawal with a penalty of 0.50% – 1% on the applicable interest rate.
2. Is SBI FD safe?
Yes, SBI FDs are safe and secure as SBI is a government-backed bank, and deposits up to ₹5 lakh are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation).
3. Can I get a loan against my SBI FD?
Yes, SBI allows loans up to 90% of your FD amount.
4. What is the minimum deposit required?
The minimum deposit amount for SBI Special FDs is ₹1,000.
5. Do senior citizens get extra benefits?
Yes, senior citizens get an additional 0.50% interest rate on all fixed deposits.
