SBI FD– How to Get Rs 1,00,000 Interest in Just 2 Years? Know Here 

SBI FD Calculation: SBI, the largest public sector bank in the country, is providing appealing interest rates on fixed deposits for its customers. As a result, you might consider investing in an FD (Fixed Deposit) for a secure investment with guaranteed returns. If a long-term investment isn’t your preference, you can opt for the bank’s 2-year FD and earn one year’s interest in just two years.

What is the interest rate on a 2-year FD?

Currently, SBI is offering an interest rate of 6.40 percent for general citizens and 6.90 percent for senior citizen customers on FDs that last more than 2 years but less than 3 years.

How to earn interest of Rs 1 lakh?

If an ordinary citizen invests Rs 740,000 in an FD scheme for over 2 years (2 years and 1 day), they can expect to earn around Rs 100,197 in interest at maturity. This will bring the total maturity amount to approximately Rs 840,197. This means investors can gain over Rs 1 lakh in interest during the specified period without facing any market risk.

Additionally, the bank provides senior citizen customers with the advantage of an extra interest rate. If a senior citizen invests Rs 7 lakh in an SBI FD for 2 years and 1 day, they can anticipate receiving about Rs 1,02,638 in interest at maturity. This will lead to a total maturity amount of roughly Rs 8,02,638.

The key point here is that senior citizens benefit from higher interest rates even on lower investments. This is because banks offer higher interest rates to senior citizens than to regular customers. This is why many people consider it safe to invest their savings in fixed deposits after retirement.

TDS on interest earned on FD

However, keep in mind that interest earned on FDs is not completely tax-free. If the total interest earned on FDs in a financial year exceeds a certain limit, the bank may deduct TDS. This limit is Rs 40,000 for general citizens and Rs 50,000 for senior citizens. However, the final tax liability depends on the individual’s total income and tax slab. If an individual’s total income is below the tax limit, they can avoid TDS by submitting Form 15G or Form 15H.