State Bank of India has introduced a new deposit scheme for resident individuals and non-individual customers. The bank is offering a higher interest rate than PPF, NSC and various other Post Office deposit schemes, under SBI Sarvottam (non-callable) term deposit scheme, senior citizens can get a 7.9 per cent interest rate on deposits of 2 years. The general public can get 7.4 per cent interest on the scheme’s deposits of two years.
According to the SBI’s website, under the Sarvottam scheme on one-year deposits, senior citizens will get the benefit of a 7.6 per cent interest rate, while the general public will gain a 7.1 per cent interest. The interest rate for Sarvottam (Non-Callable) Domestic Retail Term Deposits has been also revised and will be in effect from February 17.
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The Annualised Yield for 1-year Sarvottam deposits of above Rs 15 lakh to Rs 2 crore is 7.82 per cent for senior citizens while the yield for a two-year deposit is 8.14 per cent. On bulk deposits of Rs 2 crore to Rs 5 crore, SBI is offering 7.77 per cent for 1 year and 7.61 per cent for 2 years to senior citizens.
SBI also recently revised its interest rates for regular term deposits where it is offering 7.5 per cent interest to senior citizens for deposits of two years to less than three years and 5 years to 10 years. SBI is offering 7.6 per cent interest to senior citizens and 7.1 per cent to others under a special Amrit Kalash deposit of 400 days.
The current interest rates offered on Various small saving schemes and post office deposits for senior citizens are comparatively less than SBI Sarvottam Term Deposit rates.
PPF Interest Rate:
The current interest rate on Public Provident Fund deposits is 7.2 per cent. Only Rs 1.5 lakh in a PPF account can be investable in a year. However, the interest rate is lesser than the SBI Sarvottam deposit but the tax benefits offered by the PPF account make it better than any FD scheme.
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Post Office Interest Rates
You can get 7 per cent interest on 5-year Post Office Time deposits. The rates offered by the Post Office on 1-year and 2-year deposits are 6.6 per cent and 6.8 per cent, respectively.
NSC Interest Rate
The current interest rate for National Saving Certificate (NSC) deposits is 7 per cent compounded annually. Under this scheme, you can invest for five years and enjoy tax benefits under Section 80C.
KVP interest rate
Kisan Vikas Patra (KVP) deposits’ current interest is 7.2 per cent compounded annually. You can make your investment double with this scheme in 120 months.
