FD or Fixed Deposit-FD is the first choice of people for secure investment. A lot of folks think they can’t build a big savings pot by putting money into fixed deposits (FDs), but that’s not the case. Today, we’re diving into a fantastic FD option from the State Bank of India (SBI) that can help you grow your funds significantly.
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SBI Sarvottam FD
Right now, SBI is offering the Sarvottam FD scheme, which boasts an interest rate of 7.4%. This rate is better than other investment choices like PPF, NSC, and Post Office schemes. One of the standout features of this scheme is its short tenure, available for just 1 or 2 years. For a 2-year FD, the general public gets 7.4% interest, while senior citizens enjoy a higher rate of 7.90%.
For FDs with a 1-year term, the interest rates are 7.10% for the general public and 7.60% for senior citizens.
Now, let’s talk about the investment limits. To get started with the SBI Sarvottam Fixed Deposit Scheme, you’ll need to invest a minimum of Rs 15 lakh, with a cap of Rs 2 crore. The scheme offers options for both 1-year and 2-year tenures.
This scheme is particularly great for retirees. When they receive funds from their PPF, they can easily invest in this option. Just a heads up: if you invest over Rs 2 crore, the interest rate drops by 0.05%.
As for how interest is calculated, you’ll earn compound interest with this scheme. Plus, senior citizens get a special yield feature. For a 1-year deposit, they can expect an annual yield of 7.82%, while a 2-year deposit offers an 8.14% yield. If you’re making a bulk deposit between Rs 2 crore and Rs 5 crore, senior citizens will receive 7.77% interest for 1 year and 7.61% for 2 years.
Keep in mind, this is a non-callable scheme, meaning you can’t withdraw your funds before the end of the term. If you do, there will be penalties.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.