State Bank of India (Photo: Shutterstock)
4 min read Last updated: October 8, 2024 | 12:43 PM IST
State Bank of India (SBI) has extended the special fixed deposit schemes Amrit Kalash and Amrit Vrishti till March 31, 2025. Originally due to end on September 30, these schemes have now been extended for a further six months and offer higher interest rates. For depositors.
SBI Amrit Kalash plan?
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SBI Amrit Kalash Scheme offers fixed deposits with a tenor of 400 days at an interest rate of 7.10% per annum to retail customers. Senior citizens are getting an annual interest rate of 7.60% under this scheme, which is higher than the standard interest rate of 6.80% for similar FDs with tenure of more than 1 year and less than 2 years.
This facility is available for both new deposits and renewals of existing deposits. Customers who wish to apply can apply through SBI branches, internet banking, or the YONO app. You can also take out a loan using your fixed deposit as collateral.
SBI Amrit Vrishti FD Scheme
The SBI Amrit Vrishti Scheme, which was launched on July 15, 2024, offers fixed deposits for 444 days. The scheme was introduced soon after the Reserve Bank of India (RBI) asked banks to reduce the gap between deposit rates and credit growth.
Under the Amrit Vrishti scheme, the interest rate is 7.25% for general citizens and 7.75% for senior citizens. Similar to the Amrit Kalash scheme, it is open for investment until March 31, 2025. These interest rates are applicable on deposits below Rs 300 crore.
Indian Bank 400 Day Fixed Deposit Offer
Bank of India is offering super senior citizens an interest rate of 8.10% per annum on non-call deposits, which are deposits that cannot be withdrawn on time. Seniors receive an interest rate of 7.95%, while other customers receive an interest rate of 7.45% on the same non-callable deposit. For callable deposits with early withdrawal allowed, the interest rate is 7.95% for super senior citizens, 7.80% for senior citizens and 7.30% for others.
For those who want to compare these schemes, it may be worth checking out the interest rates of other public sector banks such as Bank of Baroda and Union Bank of India to ensure you get the best return on your investment. yeah.
According to PolicyBazaar, several public sector banks are offering competitive fixed deposit interest rates. Below is a breakdown of some of the key rates.
Bank of Baroda:
Maximum interest rate: 7.80% for 399 days (BoB Monsoon Dhamaka)
Super elderly allowance: None
Bank of India:
Maximum rate: 7.80% for 400 days
Super senior addition rate: 0.15% for 180 days or more and 10 years
Bank of Maharashtra:
Maximum rate: 7.75% for 777 days
Super elderly allowance: None
Canara Bank:
Maximum rate: 7.75% for 444 days
Super senior addition rate: 0.10% for 444 days
Central Bank of India:
Maximum rate: 7.95% for 444 days
Super elderly allowance: None
Indian banks:
Maximum rate: 7.75% for 400 days (IND SUPER)
Super senior addition rate: 0.25% for entire tenure
Indian Overseas Banks:
Maximum interest rate: 7.80% for 444 days
Super senior addition rate: 0.25% for entire tenure
Punjab National Bank:
Maximum rate: 7.75% for 400 days
Super senior addition rate: 0.30% within 5 years of service
Punjab and Sindh Bank:
Maximum interest rate: 7.80% for 666 days
Super senior addition rate: 0.15% for tenure of 222 days, 333 days, 444 days, etc.
Union Bank of India:
Maximum rate: 7.90% for 333 days
Super senior addition rate: 0.25% for entire tenure
How is fixed deposit interest taxed in India?
Interest on term deposits is taxed based on the amount earned, not the deposit itself. Adhil Shetty, CEO, BankBazaar, said, “The interest earned is added to the gross income and taxed as per the income tax schedule.” “If the interest earned is more than Rs 50,000 for senior citizens (Rs 40,000 for others), 10% TDS will be deducted by the bank, but without PAN it will go up to 20%.”
Take, for example, the case of Moonish, an 80-year-old man based in Kolkata who earns Rs 75,000 a year in interest on fixed deposits.
His tax liability will be:
Interest earned: Rs 75,000
TDS threshold for senior citizens: Rs 50,000
TDS deduction by bank: 10% of Rs 75,000 = Rs 7,500
If Mr. Moonish’s total income remains below 2.5 million rupees, he will not have to pay any additional tax. To avoid TDS, you can file Form 15G at the beginning of the financial year to declare that your income is below the taxable limit and prevent banks from prepaying TDS.
First published: October 8, 2024 | 12:43 PM IST
