SBI has launched a new fixed deposit (FD) scheme that promises guaranteed returns over a medium-term period. For conservative investors seeking safe and predictable growth, this FD is an attractive option. By investing in this scheme, your money grows steadily, with interest compounded quarterly, giving a clear picture of how your savings can increase over 5 years.
Brief Guide to SBI’s New FD
SBI’s new FD scheme is ideal for those who want financial security without market risks. By locking in your deposit for 5 years, you earn guaranteed interest, making it easier to plan for future expenses such as education, retirement, or other medium-term financial goals.
Here’s an overview of the scheme in detail:
- Deposit Amount: ₹1,00,000 (minimum, you can invest more as per your savings)
- Tenure: 5 years, suitable for medium-term financial planning
- Interest Rate: ~7.2% per annum (compounded quarterly)
- Maturity Amount: ₹1,41,826
- Total Interest Earned: ₹41,826
This setup helps investors see their money grow predictably, giving confidence and clarity in planning for the future.
Monthly Interest Accrual Table for ₹1 Lakh Deposit
To understand how the interest accumulates over time, here’s an approximate monthly breakdown:
| Year | Deposit Amount | Interest Earned in Year | Cumulative Interest | Maturity Amount at Year End | Approx. Monthly Interest |
|---|---|---|---|---|---|
| 1 | ₹1,00,000 | ₹7,200 | ₹7,200 | ₹1,07,200 | ₹600 |
| 2 | ₹1,07,200 | ₹7,710 | ₹14,910 | ₹1,14,910 | ₹642.50 |
| 3 | ₹1,14,910 | ₹8,280 | ₹23,190 | ₹1,23,190 | ₹690 |
| 4 | ₹1,23,190 | ₹8,900 | ₹32,090 | ₹1,32,090 | ₹741 |
| 5 | ₹1,32,090 | ₹9,736 | ₹41,826 | ₹1,41,826 | ₹811 |
Note: Monthly interest is approximate, as actual FD interest is compounded quarterly, not paid monthly.
Who Should Consider This FD?
This FD is best for:
- Risk-averse investors who want guaranteed returns
- Individuals planning medium-term financial goals (5 years)
- People seeking low-maintenance, predictable growth
- Anyone avoiding volatile investments like stocks or mutual funds
It’s a simple, safe way to grow savings steadily without worrying about market fluctuations.
Important Points Before Investing
- Premature withdrawals may attract penalties and reduce earned interest
- Interest earned is taxable under the Income Tax Act
- Confirm the latest interest rate and compounding frequency with SBI before investing
- Deposit insurance covers amounts up to the prescribed limit
Conclusion
SBI’s new FD scheme offers a guaranteed ₹41,826 return on a ₹1 Lakh deposit over 5 years. With clear monthly accruals, safe principal, and predictable growth, this FD is an excellent choice for conservative investors or anyone looking for steady medium-term returns.
By understanding the scheme and planning accordingly, you can maximize your benefits while keeping your money secure.
FAQ
1. How much total interest will I earn on ₹1 Lakh?
Approximately ₹41,826 over 5 years, with a maturity amount of ₹1,41,826.
2. What is the tenure of this FD?
The standard tenure is 5 years.
3. Is the interest guaranteed?
Yes, the interest and maturity amount are fully guaranteed by SBI.