SBI Fixed Deposits Can Double Your Investment Securely, Check Here

While the market fluctuations often evoke apprehension among investors, the allure of fixed and secure returns remains a first choice for many investors. For people looking for safe investment opportunities, the State Bank of India (SBI), India's largest public lender, has stood out with its Fixed Deposit (FD) schemes, offering a sanctuary for risk-averse investors seeking reliable growth opportunities.

The distinguishing feature of SBI's FD scheme is the tiered interest rates tailored for both regular customers and senior citizens. Regular customers can expect annual interest rates between 3% and 6.5%, whereas senior citizens receive an added benefit with rates ranging from 3.5% to 7.5%, varying across different maturity periods.

Picture an investor depositing Rs 10 lakh in SBI's 10-year maturity scheme. At an annual interest rate of 6.5%, the SBI FD Calculator predicts a maturity amount of Rs 19,05,558. Here, the interest alone amounts to a fixed income of Rs 905,558.

On the other hand, a senior citizen investing the same sum in the same scheme at a 7.5% annual interest rate could witness their investment soar to Rs 21,02,349 at maturity, accruing a fixed income of Rs 1,102,349 from interest—an impressive return on investment.

It is crucial to note that interest income from fixed deposits falls under Tax Deduction at Source (TDS) as per Income Tax Rules. The maturity amount is considered taxable income, with depositors required to pay taxes according to their income slab. However, to mitigate this, depositors can submit Form 15G/15H for exemption from tax deduction, optimizing their returns.

Section 80C enables customers investing in a 5-year tax-saving FD to claim a tax deduction of up to Rs 1.5 lakh, augmenting the appeal of SBI's FD schemes for prudent investors seeking secure growth avenues.