SBI FD: How much will your ₹1 lakh grow to at SBI? Find out the full breakdown for 1, 3, 5, and 10-year tenures..

SBI FD Calculator: If you are planning to open a Fixed Deposit (FD) with the State Bank of India (SBI) for a secure investment, it is crucial to know the total amount you will receive upon maturity. The maturity amount depends primarily on the bank's interest rates and your investment tenure.

Based on SBI's current retail term deposit rates, let us understand how an investment of ₹1 lakh grows over periods ranging from 1 to 10 years for general citizens and senior citizens, as well as the applicable tax conditions.

For General Citizens: What returns will a ₹1 lakh investment yield?

SBI's current FD rates for general customers and the estimated maturity amount on ₹1 lakh are as follows:

1-year FD (6.25% interest rate): After one year, your ₹1 lakh investment will grow to approximately ₹1,06,398.

3-year FD (6.30% interest rate): An amount deposited for a 3-year tenure will grow to approximately ₹1,20,642.

5-year FD (6.05% interest rate): With a 5-year investment, this amount will grow to approximately ₹1,34,982.

10-year FD: If invested for a long tenure of 10 years, the ₹1 lakh deposit will grow to approximately ₹1,82,400.

What are the benefits for senior citizens?

SBI offers senior citizens (aged 60 years and above) an interest rate that is 0.50% (50 bps) higher than the standard rates.

1-year FD (6.75% interest rate): For senior citizens, an investment of ₹1 lakh will grow to approximately ₹1,06,920 in one year. 3-year FD (6.80% interest rate): Over a 3-year tenure, this amount will grow to approximately ₹1,22,430.

5-year FD (7.05% interest rate): Over 5 years, with a rate exceeding 7%, this amount will grow to nearly ₹1,41,680 (or approximately ₹1.42 lakh).

10-year FD: Over the long term—specifically 10 years—a senior citizen's investment of ₹1 lakh will grow to surpass the ₹2,01,000 mark.

Tax implications: Is the money received from an FD entirely tax-free?

Investors often believe that the entire FD maturity amount is tax-free, but this is not the case. Under current income tax rules, the interest earned on an FD is fully taxable.

Tax liability: The amount of tax payable on FD interest depends on your total annual income and the tax regime you have opted for (Old or New Tax Regime).

TDS deduction: Banks deduct Tax Deducted at Source (TDS) on FD interest once it exceeds a certain threshold. Note that TDS is not an additional tax; you can adjust it against your total tax liability or claim it as a refund when filing your Income Tax Return (ITR).

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Relief from TDS via Form 15H: Senior citizens can avoid TDS deduction by submitting Form 15H to the bank. The condition is that, after the Section 87A rebate and other deductions, their total income must fall below the tax-free limit—specifically, ₹12 lakh under the new tax regime and ₹5 lakh under the old tax regime.