SBI FD on Rs 1 Lakh for 365 days can give investors a fixed return over one year.
For a regular customer, SBI’s one-year FD interest rate is currently 6.25% per annum, subject to the bank’s applicable rates and terms.
If you invest Rs 1 lakh in a one-year cumulative FD, the interest is compounded quarterly.
Based on the current rate, the estimated maturity amount works out to around Rs 1.06 lakh.
SBI FD on Rs 1 Lakh: How Much Will You Get?
For a Rs 1 lakh deposit at 6.25% annual interest, the estimated interest over one year is around Rs 6,400, taking quarterly compounding into account.
This means the maturity amount can be approximately Rs 1,06,400.
The exact amount will be the figure mentioned on the FD receipt issued by SBI.
SBI itself notes that its maturity calculator provides indicative figures, while the actual maturity value is as stated on the fixed deposit receipt.
SBI FD Interest Rate for One Year
SBI currently offers 6.25% per annum on fixed deposits with a tenure of one year to less than two years for eligible regular customers.
Senior citizens generally receive an additional interest rate over the applicable regular rate.
The interest rate depends on the selected tenure, deposit category and applicable SBI rules.
Rates can also change, so investors should check the rate applicable on the date they book the FD.
What Happens to Rs 1 Lakh After One Year?
A cumulative FD does not normally pay the interest periodically to the investor.
Instead, the interest is added to the deposit according to the applicable compounding method and paid along with the principal at maturity.
For a Rs 1 lakh investment, the estimated maturity value at the current one-year rate is therefore slightly higher than what a simple 6.25% calculation would suggest because of quarterly compounding.
The actual return may also be affected by applicable tax rules, including TDS where relevant.
Investors should consider their tax liability while calculating the final post-tax return.
Is SBI FD Suitable for Short-Term Savings?
An SBI FD can appeal to investors who prefer a relatively predictable return and do not want their money exposed to daily market movements.
However, investors should compare the interest rate, tenure, premature withdrawal conditions and tax implications before booking an FD.
SBI offers different rates across different deposit periods, so choosing the right tenure can affect the final return.
