If you’re planning to invest in a Fixed Deposit (FD) with the State Bank of India (SBI), there’s an important update you should know. SBI has reintroduced its special FD scheme called ‘Amrit Kalash’ (previously known as ‘Amrit Vrishti’), but with reduced interest rates this time.
This revision follows the recent cut in the repo rate by the Reserve Bank of India (RBI), which has directly impacted the interest rates offered by banks on fixed deposits.
What Is the ‘Amrit Kalash’ FD Scheme?
The Amrit Kalash FD scheme is a special fixed deposit plan by SBI designed to offer better returns than regular FDs. Previously, it provided higher interest rates, making it a popular choice among depositors.
However, after the RBI’s repo rate cut, SBI has made some changes:
- The FD tenure is fixed at 444 days.
- Interest rates have been reduced by 20 basis points.
New Interest Rates for SBI Amrit Kalash FD
Here’s how the new rates look:
- For general customers:
- Earlier: 7.25% per annum
- Now: 7.05% per annum
- For senior citizens:
- Earlier: 7.75% per annum
- Now: 7.55% per annum
Although the return is slightly lower than before, it still offers better returns compared to many regular FD schemes available in the market.
Interest Rates on Other SBI FDs
SBI has also revised the interest rates for its standard fixed deposit schemes:
- For general citizens:
- Interest ranges from 3.50% to 6.90%, based on tenure (7 days to 10 years)
- For senior citizens:
- Interest ranges from 4% to 7.50%
This adjustment also applies to loan rates, meaning customers may benefit from lower EMIs as well.
Penalty on Premature Withdrawal
Planning to withdraw your FD early? Here’s what you need to know:
- FDs up to ₹5 lakh:
- 0.50% penalty on premature withdrawal
- FDs above ₹5 lakh and below ₹3 crore:
- 1% penalty on early closure
- FDs with tenure below 7 days:
- No interest will be paid
Should You Invest in This Scheme?
Despite the recent rate cut, the Amrit Kalash FD remains a low-risk and stable investment option. It’s suitable for:
- Individuals who prefer safety over high returns
- Those looking for guaranteed income without market risks
- Investors who want to diversify beyond equity or mutual funds
Before investing, consider your financial goals and liquidity needs. If stability and safety are your priorities, this scheme could be a wise choice.
Conclusion
The State Bank of India’s Amrit Kalash FD offers a dependable investment opportunity even after the interest rate reduction. While the returns are slightly lower than before, the scheme still stands out for its security and predictability. If you’re looking for a reliable way to grow your savings, this FD could be a solid option to explore.
