SBI Scheme: You can earn a certain interest on your principal ie deposit by depositing a lump sum in bank FD. Apart from this, if you have made an FD for 5 years, then you can also avail tax deduction.
SBI Term Deposit Scheme: Bank Fixed Deposit or Term Deposit is a traditional investment option. Bank FDs are a better way to give a safe and fixed income. The country’s largest bank SBI has increased the interest rates on Tuesday to make its FD attractive. In Bank FD, you can deposit a lump sum and earn a fixed interest on your principal amount. Apart from this, if you have made an FD for 5 years, then you can also avail tax deduction. SBI is paying 5.50 percent annual interest on its 5-year FD to the general customer and 6.30 percent to the senior citizen.
3.66 lakh interest on 10 lakh deposit
According to the FD calculator, if you deposit a lump sum deposit of Rs 10 lakh in SBI for 5 years, then on maturity you will get Rs 13,14,067. In this, interest of Rs 3.14 lakh will be earned. On the other hand, if you are a senior citizen, then on an FD of Rs 10 lakh, you will get Rs 13,66,900 on maturity. In this, there will be an income of Rs 3,66,900 from interest.
SBI Wecare Deposit for Senior Citizen
SBI is running SBI Wecare Scheme for Senior Citizens in Retail Term Deposit / Fixed Deposit. In this scheme, in addition to 0.50 percent, 0.30 percent ie 0.80 percent more interest is being offered to all senior citizens on FDs with tenure of 5 years or more. The bank has extended this scheme till 30 September 2022.
Benefits of Bank FD
Fixed deposits / term deposits of banks are considered safe. This is a good option for risk-averse investors. Tax exemption is available in section 80C on tax saving FDs of 5 years. However, the interest earned from FD is taxable.