The State Bank of India (SBI) has reintroduced its special fixed deposit scheme, ‘Amrit Kalash’, for retail customers. This 400 days term deposit offers a rate of 7.1 per cent for the general customer and a 50 basis point (bps) higher (7.6 per cent) for senior citizens, according to the SBI website.
In the 400-day tenure, the interest rate would fetch the customer an effective yield of 7.29 per cent if the interest is not withdrawn, and compounded quarterly, says the website. For senior citizens, the annualised yield would come to 7.82 per cent.
This fixed-term deposit was introduced first in FY22-23, from February 15, 2023 to March 31, 2023. Now, the bank has reintroduced the scheme from April 12, 2023 to June 30, 2023.
At present, SBI is offering a maximum 7 per cent rate of interest for fixed deposits of two years to less than three years, whereas the highest interest rates for senior citizens is 7.5 for the same tenure as well as for longer term under the ‘SBI Wecare’ fixed deposit scheme, which has a 5-10 year deposit period.
The interest will be payable on a monthly, quarterly, or half-yearly basis under Amrit Kalash.
One can also go for receiving interest on maturity. The TDS will be deducted at the tax slab rate applicable to the depositor under the Income-tax Act, 1961. The bank will credit the interest, net of TDS, to the customer’s account at the end of the tenure.
Domestic retail term deposits, including non-resident Indian (NRI) rupee term deposits (less than Rs 2 crore), new and renewals, term deposits, and special term deposits are eligible for this specific tenure deposit scheme.
Customers can deposit in the scheme at SBI’s branches, through Netbanking, or through the SBI YONO mobile app. One can also avail loan against the ‘Amrit Kalash’ deposit scheme. A premature withdrawal facility is also available for this scheme.
Earlier this month, the bank extended the date for its other fixed-term deposit named ‘SBI Wecare’. The Wecare term deposit is for senior citizens and offers a deposit rate 100 bps higher than the interest offered to the general public. The date for this scheme has also been extended to June 30, 2023.