SBI Scheme: SBI provides the facility of FDs ranging from 7 days to 10 years to the customers. On FDs of different maturity, SBI gives 3% to 6.5% annual interest to regular customers and 3.5% to 7.5% to senior citizens.
SBI Scheme: If you are looking for an investment option for fixed income in the long term without taking the risk of the stock market, then bank FDs are a good option. The country’s largest bank SBI provides the facility of FDs ranging from 7 days to 10 years to the customers. On FDs of different maturity, SBI gives 3% to 6.5% annual interest to regular customers and 3.5% to 7.5% to senior citizens. SBI’s FD scheme is a good option for long term investment for senior citizens.
SBI Scheme: ₹10 lakh in 10 years on deposit of ₹5 lakh
Suppose, a regular customer deposits Rs 5 lakh in lump sum in SBI’s scheme with 10 years maturity. According to SBI FD Calculator, the investor will get a total of Rs 9,52,779 on maturity at 6.5 percent annual interest rate. In this, there will be fixed income of Rs 4,52,779 from interest.
On the other hand, a senior citizen deposits Rs 5 lakh in lump sum in SBI’s 10 year maturity scheme. According to SBI FD Calculator, senior citizens will get a total of Rs 10,51,175 on maturity at 7.5 percent annual interest rate. In this, there will be a fixed income of Rs 5,51,175 from interest.
SBI FDs: Interest income taxable
Fixed deposits/term deposits of banks are considered safe. This is a good option for risk-averse investors. Tax exemption is available under section 80C on 5 year tax saving FD. However, the interest earned on FD is taxable. According to Income Tax Rules (IT Rules), Tax Deduction at Source (TDS) is applicable on FD scheme. That is, the amount received on maturity of FD will be considered as your income and you will have to pay tax according to the slab rate. As per IT rules, the depositor can submit Form 15G/15H for exemption from tax deduction.
