SBI Amrit Kalash Fixed Deposit rates: India’s biggest lender by assets, State Bank of India has said it would reintroduce its retail term deposit, Amrit Kalash, which will offer an interest rate of 7.6 per cent to senior citizens and 7.1 per cent to others. It is a special scheme of 400 days tenor.
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Earlier, SBI launched the same retail term deposit scheme on February 15, 2023, which was valid till March 31, 2023.
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The bank reintroduced the scheme on April 12 and it will be valid till June 30, 2023. The scheme is applicable on domestic retail term deposits including NRI Rupee Term Deposits below Rs 2 crore.
According to the SBI website, “The specific tenor scheme of “400 days” (Amrit Kalash) at Rate of Interest of 7.10 per cent w.e.f. 12- April- 2023. Senior Citizens are eligible for a rate of interest of 7.60 per cent.”
Interest rate and tenor
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The special fixed deposit scheme is for a period of 400 days. The interest rate for general investors is 7.10 per cent, whereas, senior citizens would get 7.60 per cent. It is valid from April 12, 2023 to June 30, 2023.
Interest and tax
The interest on this scheme will be paid monthly, quarterly, and semi-annual intervals. The maturity interest on special term deposits, net of TDS, will be added to the customer’s account.
The scheme will attract tax deducted at source (TDS) at the applicable rate under the Income-Tax Act. The scheme will also have a premature withdrawal and loan facility.
SBI Wecare Senior Citizen FD scheme
Besides this, SBI has also extended its Wecare Senior Citizen FD scheme to June 30, 2023. The scheme was first introduced in May 2020, with an initial maturity date of September 2020. Since then, the FD scheme designed for senior citizens was repeatedly extended.
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According to an SBI statement, “SBI takes pride in its association with Senior Citizens and introduces new Deposit Scheme ‘SBI WECARE’ protecting their income by offering additional interest on Term Deposits.”
Interest rate and tenor
The interest rate offered under this particular scheme for senior citizens is 7.50 per cent for a period ranging from 5 years to 10 years.
As per the SBI statement, an additional premium of 50 bps (over and above the existing premium of 50 bps) over the card rate for the Public i.e., 100 bps over the card rate for the Public is offered to the customers under this scheme.
In comparison, Senior Citizen Savings Scheme (SCSS) backed by the Centre offers an interest rate of 8.2 per cent annually.
The minimum deposit is Rs 1000, while the maximum limit is Rs 30 lakh for a single individual.
Besides, SCSS deposits qualify for tax deduction under Section 80C subject to the limit of Rs 1.5 lakh.
