The Reserve Bank of India (RBI) has completely changed the interest rate calculations in the banking sector after the Reserve Bank of India (RBI) cut the repo rate by a total of 1.25 percent this year. Following the latest reduction of 0.25 percent in the repo rate in December, it now stands at 5.25 percent.
This change has directly impacted fixed deposit (FD) rates, and the country’s largest public sector bank, State Bank of India (SBI), has also revised the interest rates on select FD schemes. However, the good news for investment enthusiasts is that some of SBI’s fixed-term schemes are still offering strong returns. If you want to earn a guaranteed profit of up to ₹83,652 with a safe investment, this article is crucial for you.
Investment Opportunity from 7 Days to 10 Years
State Bank of India offers its customers flexible investment options, allowing you to lock in your savings for long-term periods ranging from 7 days to 10 years. Currently, SBI offers attractive interest rates ranging from 3.05% to 7.05%. The bank’s most popular scheme, ‘Amrit Vrishti’, comes with a special tenure of 444 days and offers returns of 6.45% for general citizens and 6.95% for senior citizens. Furthermore, deposits between 1 and 2 years offer 6.10% interest for general customers and 6.60% for senior citizens.
How to earn ₹83,652 on an investment of ₹2 lakh
SBI’s 5-year FD scheme is ideal for those who want a guaranteed income while keeping their money safe for a long time. If you are under 60 years of age and fall under the general category, you will earn an annual interest of 6.05% on a 5-year FD. In this situation, after 5 years, you will receive a fixed interest of ₹70,035 on a total investment of ₹2,00,000, bringing your maturity amount to ₹2,70,035.
On the other hand, SBI has always been more generous towards senior citizens. Senior citizens aged 60 years and above receive a steady return of 7.05% on a 5-year FD. If a senior citizen deposits ₹2,00,000 for 5 years, they will receive a total of ₹2,83,652 upon maturity. The interest portion of this will be ₹83,652, which is considered a very good and safe return in today’s falling market.
SBI Fixed Deposit Benefits
Depositing money with SBI is not just about earning interest, but also about complete peace of mind. Being a government bank, your money is 100% safe. Another major advantage of investing in a 5-year FD is that you can claim tax exemption under Income Tax Section 80C, further increasing your savings.
Furthermore, the bank offers nomination options to ensure your family doesn’t face any future difficulties. If you suddenly need money, you can also take up to 90% of your FD amount as a loan or overdraft, avoiding the need to interrupt your plan.