SBI Scheme: The “Amrit Vrishti” special fixed deposit (FD) scheme from State Bank of India, the country’s largest public sector bank, is highly favoured by investors seeking secure and guaranteed returns. This distinctive 444-day term deposit offers appealing interest rates for a wide range of individuals, from ordinary citizens to senior and super senior citizens.

If you wish to secure your hard-earned money for a fixed duration without exposure to market risks, it is essential to thoroughly understand all the terms and conditions of this scheme.

Understand the complete interest rate structure first

The interest rates on deposits under the Amrit Varsha Yojana for the 444-day period depend on the investor’s age:

Investor Category Age Limit Annual Interest Rate (%)
Ordinary citizens Below 60 years 6.45% p.a.
Senior citizens 60 years or older 6.95% p.a. (0.50% extra)
Super senior citizens 80 years or older 7.05% p.a. (0.60% extra)
Note: The interest rate fixed at the time of account opening remains unchanged for the entire 444-day term. Even if the bank revises its interest rates during this period, your rate will stay the same.

Who is eligible to invest and what are the limits?

Eligibility: Resident citizens, Hindu Undivided Families (HUFs), and Non-Resident Indians (NRIs) can open accounts under this scheme.

Minimum and maximum deposit: The FD can be started with a minimum amount of Rs 1,000. This scheme is intended for retail deposits below Rs 3 crore.

Who is not eligible for benefits: This scheme does not qualify as a tax-saving FD, recurring deposit (RD), annuity deposit, or multi-option deposit (MOD).

Interest payment options

Investors can choose from two main interest payment methods according to their requirements:

Term Deposit (TDR): For those needing regular income, interest can be paid monthly, quarterly, or half-yearly.

Special Term Deposit (STDR): This option provides quarterly compounding of interest, with the entire principal and accumulated interest paid together upon maturity after 444 days.

Premature withdrawal rules and penalties

If you need to withdraw funds before the 444-day term ends, the following rules apply:

Withdrawal within 7 days: No interest will be paid if the FD is broken within 7 days of deposit.

For deposits up to Rs 5 lakh: Premature withdrawal will incur a penalty of 0.50% of the applicable or contracted interest rate, whichever is lower.

For deposits above Rs 5 lakh and below Rs 3 crore: A penalty of 1.00% applies on premature withdrawal in this range.

Exemption: SBI employees and SBI pensioners are exempt from premature withdrawal penalties.

Loan facility and tax regulations

Loan/Overdraft: You do not need to break the FD in case of urgent funds; you can avail a loan or overdraft up to 90% of the deposit value.

Tax (TDS): Interest earned under this scheme is fully taxable as per your income tax slab. The bank deducts 10% TDS if interest income exceeds Rs 50,000 for general citizens and Rs 1,00,000 for senior citizens in a financial year. Eligible investors can submit Form 15G or 15H to avoid TDS.

How to book the ‘Amrit Vrishti’ FD?

You can conveniently open this special FD through the following methods:

Online: Log in to the SBI YONO App or SBI Net Banking, navigate to ‘Deposits’, select ‘Fixed Deposit’, and enter 444 days as the tenure.

Offline: Visit your nearest SBI branch and complete the ‘Amrit Vrishti’ application form.