SBI FD Scheme: Tax deduction is also available on FDs with maturity of 5 years in SBI. SBI is currently offering 6.10 per cent interest per annum to regular customers and 6.9 per cent per annum to senior citizens on 5-year FDs.
SBI FD Scheme: Along with the rising interest rates of loans, banks are increasing interest on deposits. State Bank of India (SBI) has also increased interest rates on FDs in recent months. If you too are looking for a risk-free fixed income option amidst the ongoing ups and downs in the market, then there is a better option in bank FDs. In SBI’s FD, the customer can make a lump sum deposit in different tenures of 1-10 years. In this, the interest to be received at the time of deposit is fixed. There is also the benefit of tax deduction on FDs with maturity of 5 years in SBI. SBI is currently offering 6.10 per cent interest per annum to regular customers and 6.9 per cent per annum to senior citizens on 5-year FDs.
SBI: How much interest on ₹ 5 lakh deposit
If you make an FD of Rs 5 lakh for 5 years in SBI’s bank FD, the regular customer will get around Rs 6,76,753 on maturity at 6.1% per annum interest. That is, there will be fixed income from interest of Rs 1,76,753 lakh. On the other hand, if senior citizens get a 5-year FD for Rs 5 lakh, they will get more than Rs 7,03,921 on maturity. That is, in 5 years, there will be a fixed income of Rs 2,03,921 as interest.
These revised interest rates of SBI are applicable from October 22, 2022 to deposits of less than Rs 2 crore. On the other hand, if SBI staff deposits for the same tenure, then they will get 1 percent more interest.
Benefits of Tax Saver FD
Fixed deposits / term deposits of banks are considered safe. This is a good option for risk-averse investors. Under Section 80C, you can avail tax deduction up to Rs 1.50 lakh on a 5-year tax saving FD. However, the interest earned on FD is taxable. Bank FD is a very popular scheme among the salaried class and senior citizens due to tax savings and fixed income.
(Note: The information on interest rates available on FD has been taken from the official website of SBI.)