SBI FD: Are you planning to open a FD account at the State Bank of India? Then this article is for you. Term deposits or fixed deposits (TDs/FDs) of banks are one of the popular investment options in the country. In these, the depositor does not have market exposure and has a fixed income with interest after a fixed period. Let’s know where regular and senior citizens will benefit more on the FD of Rs 5 lakh for government bank SBI 5 years.
SBI FD rates 2024
SBI is paying 6.5% interest annually on a 5-year FD to regular customers. This rate for senior citizens is 7.50 percent. These interest rates are applicable to deposits of less than Rs 2 crore with effect from 27th December 2023.
According to the SBI FD Calculator, if the regular customer makes an FD of Rs 5 lakh, then on maturity you will get Rs 6,90,209. That is, there will be an income of Rs 1,90,209 from interest. Senior citizens will get Rs 7,24,974 on maturity on depositing Rs 5 lakh. There will be a guaranteed income of Rs 2,24,974 from interest.
Tax Benefits
If you make an FD of 5 years in any bank, then the benefit of tax deduction is available in Section 80C. In this, tax deduction can be claimed on investment up to a maximum of Rs 1.50 lakh in a financial year. There is a lock-in period of 5 years. This period can extend up to 10 years.
According to the income tax rule, however, the interest received from FDs is taxable. If the interest earned on FD/TD in a financial year is more than Rs 40,000, then TDS (Tax Deduction at Source) is deducted. For senior citizens, this limit is Rs 50,000. If a person’s income is less than the taxable limit, then he will have to fill out Forms 15G and 15H and request the bank not to deduct tax TDS on FD/TD.