SBI extends Fixed Deposit schemes: How they stack up versus other PSBs
Source: Business Standard
State Bank Of India (Photo: Shutterstock)
State Bank of India (SBI) has extended its special fixed deposit schemes, Amrit Kalash and Amrit Vrishti, until March 31, 2025. Initially set to conclude on September 30, these schemes have now been extended for another six months, providing higher interest rates for depositors.
SBI Amrit Kalash scheme?
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The SBI Amrit Kalash scheme offers a fixed deposit with a tenure of 400 days, providing an interest rate of 7.10% per annum for general customers. Senior citizens receive a rate of 7.60% per annum on this scheme, higher than the standard rate of 6.80% for FDs with similar tenures of 1 year to less than 2 years.
The scheme is available for both new deposits and renewals of existing deposits. Interested customers can apply through an SBI branch, internet banking, or the YONO app. Additionally, the option to avail of a loan against the fixed deposit is also available.
SBI Amrit Vrishti FD scheme
Launched on July 15, 2024, the SBI Amrit Vrishti scheme offers a 444-day fixed deposit. The scheme was introduced right after the Reserve Bank of India (RBI) urged banks to reduce the gap between deposit rates and credit growth.
The Amrit Vrishti scheme offers a 7.25% interest rate for general citizens and 7.75% for senior citizens. Like the Amrit Kalash scheme, it remains open for investments until March 31, 2025. These interest rates apply to deposits below Rs 3 crore.
Bank of India’s 400-day term deposit offer
Bank of India is providing an interest rate of 8.10% per annum for super senior citizens under non-callable deposits, which are deposits that cannot be prematurely withdrawn. Senior citizens receive 7.95%, while other customers get a 7.45% rate for the same non-callable deposits. For callable deposits, where early withdrawal is allowed, the rates stand at 7.95% for super senior citizens, 7.80% for senior citizens, and 7.30% for others.
For those looking to compare the schemes, it might be worthwhile to explore rates from other public sector banks like Bank of Baroda and Union Bank of India to ensure they get the best returns on their investments.
According to PolicyBazaar, several public sector banks offer competitive fixed deposit rates. Here’s a breakdown of some of the leading rates:
Bank of Baroda:
Highest rate: 7.80% for 399 days (BoB Monsoon Dhamaka)
Super Senior Citizen benefits: None
Bank of India:
Highest rate: 7.80% for 400 days
Additional rate for Super Senior Citizens: 0.15% for tenures from 180 days to 10 years
Bank of Maharashtra:
Highest rate: 7.75% for 777 days
Super Senior Citizen benefits: None
Canara Bank:
Highest rate: 7.75% for 444 days
Additional rate for Super Senior Citizens: 0.10% on 444 days
Central Bank of India:
Highest rate: 7.95% for 444 days
Super Senior Citizen benefits: None
Indian Bank:
Highest rate: 7.75% for 400 days (IND SUPER)
Additional rate for Super Senior Citizens: 0.25% on all tenures
Indian Overseas Bank:
Highest rate: 7.80% for 444 days
Additional rate for Super Senior Citizens: 0.25% on all tenures
Punjab National Bank:
Highest rate: 7.75% for 400 days
Additional rate for Super Senior Citizens: 0.30% for tenures up to 5 years
Punjab & Sind Bank:
Highest rate: 7.80% for 666 days
Additional rate for Super Senior Citizens: 0.15% on tenures like 222 days, 333 days, 444 days, and others
Union Bank of India:
Highest rate: 7.90% for 333 days
Additional rate for Super Senior Citizens: 0.25% on all tenures
How is fixed deposit interest taxed in India?
Fixed deposit interest is subject to tax based on the amount earned, not the deposit itself. “The interest earned is added to your total income and taxed according to your income tax slab,” said Adhil Shetty, CEO of BankBazaar. “If the interest earned exceeds Rs 50,000 for senior citizens (Rs 40,000 for others), a 10% TDS is deducted by the bank, which goes up to 20% without a PAN.”
Here’s how his tax liability works out:
Interest earned: Rs 75,000
TDS threshold for senior citizens: Rs 50,000
TDS deducted by bank: 10% of Rs 75,000 = Rs 7,500
If Mounish’s total income remains below Rs 2.5 lakh, he won’t need to pay additional tax. To avoid TDS, he could submit Form 15G at the beginning of the financial year, declaring his income below the taxable limit, preventing the bank from deducting TDS upfront.
First Published: Oct 08 2024 | 12:43 PM IST
