SBI FD Calculator: PSU bank pays these returns on Rs 1 lakh-Rs 3 lakh investments over 1-year, 3-year, 5-year, 10-year, other maturities; see examples
SBI FD Returns: Are you aware of the fixed deposit rates offered by the country's largest lender, State Bank of India (SBI)? Here's a comparison of various maturities of fixed deposits provided by SBI now with examples. Remember, the interest in fixed deposit accounts is compounded on a quarterly basis. What this essentially means is that an FD of Rs 1 lakh yields a return of Rs 7,186, and not 7,000, over a year. Read on to learn about the current interest rates offered by SBI to senior citizens and other depositors in their FD accounts.
SBI FD Rate List: A fixed deposit (FD) is a 'fixed' income scheme where depositors earn interest on a lump sum investment for a fixed period. Historically, FDs have been a preferred investment option for conservative investors. State Bank of India (SBI), the country's largest lender, offers various domestic FD maturities ranging from 7 days to 10 years. Outlined below are SBI's current FD rates for different depositors, along with examples illustrating estimated returns across various maturity options.
SBI FD Rates | Maturity options
SBI offers eight maturity options for domestic term deposits—or fixed deposits. These are:
7 days to 45 days
46 days to 179 days
180 days to 210 days
211 days to less than 1 year
1 Year to less than 2 years
2 years to less than 3 years
3 years to less than 5 years
5 years and up to 10 years
SBI FD interest rates
As of October 8, 2024, the PSU banking giant offers interest rates in the range of 3.5-7 per cent to the general public and 4-7.5 per cent to senior citizens on these maturities, according to its website, sbi.co.in.
SBI pays 100 bps higher return to senior citizen FD depositors in one maturity option. Can you guess which?
In the maturity option of 5 years and above, the PSU bank pays a special return of 7.5 per cent to senior citizen depositors under its We-Care scheme.
This is a limited-period scheme. Learn more about it here.
Learn about SBI FD rates with examples
Example 1: Rs 1 lakh investment for 1 year
Let's assume that a senior citizen depositor and a general depositor each invest Rs 1 lakh in an SBI FD for one year. Can you guess the returns in each case?
Remember, FDs are compounded on a quarterly basis, which means that the interest rate is divided into four parts in a year and the return is applied and added to the corpus at the end of each quarter before the next quarter commences.
So in this example, a general depositor will earn an interest of Rs 6,975 whereas a senior citizen will get Rs 7,502.
At the end of the year, the total money that they will receive (the principal and the interest) will be approximately Rs 1,06,975 and Rs 1,07,502, respectively.
Learn about SBI FD returns with examples
Example 2: Rs 1.5 lakh investment for 2 years
At the current interest rates, an investment of Rs 1.5 lakh will become Rs 1,74,033 (including Rs 24,033 interest) for senior citizens and Rs 1,72,332 (including Rs 22,332 interest) for other depositors.
SBI FD returns with examples
Example 3: Rs 2 lakh investment for 4 years
Similarly, over 4 years, a Rs 2 lakh investment grows into Rs 2,61,403 for the general public and Rs 2,66,592 for senior citizens.
Confused?
A 4-year period falls in the SBI FD slab of '3 years to less than 5 years'. Hence, interest rates of 6.75 per cent and 7.25 per cent apply for general and senior citizen depositors, respectively.
Power of Compounding | The longer the FD term, the larger the benefit...
Not only does SBI, and most other commercial lenders, offer higher interest rates on longer term deposit options, but also your investment gets more instances of the interest component being added to your principal, which enhances your overall return.
This is indeed the power of compounding.
SBI FD returns with examples | Rs 2,50,000 investment for 5 years
Example 4: Rs 2.5 lakh investment for 5 years
At the current interest rates, a 5-year FD each by a general depositor and a senior citizen depositor yields significantly different returns in this maturity as the general depositor gets 6.5 per cent whereas the senior citizen depositor gets 7.5 per cent (We-Care).
So, a sum of Rs 2.5 lakh becomes Rs 3,62,487 for senior citizens and Rs 3,45,105 for other depositors in the 5-year maturity option.
SBI FD Returns | Can you guess the returns in 7 years?
Example 5: Rs 3 lakh investment for 7 years
While SBI pays general depositors an interest of Rs 1,71,126 to general depositors in a 7-year FD of Rs 3 lakh, it will pay a higher return of Rs 2,04,678 to senior citizen depositors, according to estimates.
Therefore, their Rs 3 lakh investments will become Rs 4,71,126 and Rs 5,04,678 in the 7-year period, respectively.
FD Return Estimate
Example: 6: Rs 5 lakh investment for 10 years
At the current interest rates, SBI pays senior citizens and other depositors returns of Rs 10,51,175 (including Rs 5,51,175 interest) and Rs 9,52,779 (including Rs 4,52,779 interest) on Rs 5 lakh investments in 10-year FDs, estimates show.
Power of Compounding
Please Note: Please note that the above examples are illustrative and based on current SBI FD rates, which are subject to change. Actual figures may vary.