Despite the constant introduction of new investment opportunities each year, particularly by asset management companies (AMCs) launching new fund offers across different categories and themes, high-interest fixed deposits (FDs) remain a steadfast attraction for both young and old investors alike. The enduring appeal of FDs, despite their age-old concept, underscores how even the most innovative financial products introduced in the industry have not diminished the interest in these government-sponsored investment vehicles.
Recognizing this trend, the State Bank of India (SBI) has introduced a new term deposit scheme called Amrit Vrishti. The scheme is designed with a customer-centric approach, offering competitive interest rates and catering to both domestic and non-resident Indian customers. The Amrit Vrishti scheme offers an enticing interest rate of 7.25% per annum for deposits of 444 days, starting from July 15, 2024.
Additionally, senior citizens will receive an extra 0.50% interest, maximizing returns for this demographic. This scheme remains open for investment until March 31, 2025, presenting retail investors with ample opportunity to capitalize on the elevated interest rates.
Investors can avail of the Amrit Vrishti scheme through multiple convenient channels including SBI branches, YONO SBI, YONO Lite (mobile banking apps), and SBI internet banking (INB). This ensures flexibility and accommodates both online and offline transactions.
Is Amrit Vrishti worth its name?
While the scheme may appear appealing at first glance, its true value comes into question when considering that the post-tax interest rate may not be sufficient to outpace inflation. In a period where daily living expenses are soaring, relying solely on FDs for wealth creation may not be financially viable.
Before evaluating the scheme’s effectiveness, it’s crucial to consider the investment duration. The power of compounding is most evident over a longer investment horizon. The Amrit Vrishti option, however, limits the investment period to just 444 days, without provisions for renewing FD investments at the same interest rate. This suggests that this investment is suitable primarily for individuals with short-term goals, rather than for many investors seeking to generate returns on their investments over extended periods, such as a decade or more.
Hiren Thakkar, Chartered Accountant Proprietor, Hiren S Thakkar & Associates, says, “With a pre-tax internal rate of return at 7.80%, and a post-tax return of 7.75%, an initial investment of ₹1,00,000 will generate ₹9,787 over 444 days. This is because a shorter investment horizon limits the opportunity for compounding to maximize growth. The interest earned may not be sufficient to significantly increase your investment.” The Amrit Vrishti scheme, with its 444-day term, provides a respectable interest rate but may not be optimal for fully leveraging the potential of compounding for long-term financial goals. The plan is considered appropriate for senior citizens with short-term investment objectives, aiming to earn a reasonable interest income on their retirement savings.
Better options to consider
The plan is tailored for individuals who are not only focused on earning money but also willing to dedicate sufficient time to witness their investments grow. If you seek an investment option that appreciates over time, consider alternatives in the market that offer potential returns despite inherent risks.
For instance, if you have a financial goal set for a decade from now, a stable blue-chip mutual fund that grows steadily and is less susceptible to market fluctuations might be more suitable. On the other hand, investors willing to take on risk could consider dynamic small-cap mutual funds known for high returns or thematic funds aligned with specific sectors’ performance.
First Published:
22 Jul 2024, 11:59 AM IST
FAQs
The "Amrit Vrishti" scheme comes with an interest rate of 7.25% per annum on deposit of 444 days. In addition, SBI will provide an additional 0.50% on top of it to senior citizens, maximizing returns for this segment of customers. Loan can be availed on these deposits. The investment period is up to March 31, 2025.
What is the interest rate for 444 days FD in SBI? ›
SBI NRE FD Interest Rates w.e.f. 15 July 2024
| Tenure | Interest Rates (p.a.) |
|---|
| 444 Days (Amrit Vrishti) | 7.25% | – |
| 2 years to less than 3 years | 7.00% | 7.00% |
| 3 years to less than 5 years | 6.75% | 6.50% |
| 5 years to 10 years | 6.50% | 6.25% |
3 more rowsAug 14, 2024
SBI Amrit Vrishti FD: SBI provides a 7.25 per cent interest rate for general citizens while senior citizens get a 7.75 per cent interest rate under this guaranteed return scheme. State Bank of India's (SBI's) Amrit Vrishti scheme is a fixed deposit (FD) scheme. It has a specific tenure of 444 days.
What is the Amrit Vristi scheme of SBI? ›
The name “Amrit Vrishti” translates to “nectar shower,” symbolizing the beneficial and rewarding nature of this investment. The scheme provides an attractive interest rate of 7.25% per annum for a tenure of 444 days, with an additional 0.50% for senior citizens, bringing their total to 7.75% per annum.
What is the 444 FD scheme? ›
The Amrit Vrishti FD has a fixed deposit period of 444 days. The scheme will be available from July 15, 2024 to March 31, 2025. Domestic Retail Term Deposits including NRI Rupee Term Deposits (< Rs 3 crore). New and Renewal of existing deposits.
How to calculate FD interest for 444 days? ›
The fixed deposit maturity amount is calculated by the formula MV = (P x r x t)/100, in which MV is the maturity value; P is the principal amount deposited; r is the rate of interest; and t is the duration or the tenure of the FD.
How can I get 10,000 interest monthly in SBI? ›
How to earn a monthly fixed income of Rs 10,000 with this scheme? To receive a monthly income of Rs 10,000 from this scheme, a customer will have to make a one-time deposit of 5,07,964. The return from the scheme based on a 7 percent rate of interest would bring back an amount of Rs 10,000 every month.
What is the interest rate for 400 days FD in SBI 2024? ›
The specific tenor scheme of “400 days” (Amrit Kalash) at Rate of Interest of 7.10 % w.e.f. 12- April- 2023. Senior Citizens are eligible for rate of interest of 7.60%. The Scheme will be valid till 30-September-2024.
Which FD is best in SBI for senior citizens? ›
Revised SBI Retail Domestic Term Deposits Interest Rates 2024 (Below Rs. 3 crore)
| Tenure | General Public FD Rate | Senior Citizens FD Rate |
|---|
| 7 days to 45 days | 3.50% | 4.00% |
| 46 days to 179 days | 5.50% | 6.00% |
| 180 days to 210 days | 6.25% | 6.75% |
| 211 days to less than 1 year | 6.50% | 7.00% |
5 more rowsThe scheme is designed with a customer-centric approach, offering competitive interest rates and catering to both domestic and non-resident Indian customers. The Amrit Vrishti scheme offers an enticing interest rate of 7.25% per annum for deposits of 444 days, starting from July 15, 2024.
The State Bank of India (SBI) has launched a new term limited period deposit scheme known as "Amrit Vrishti", an FD scheme offering higher interest rates and catering to both domestic and non-resident Indian customers. The new scheme is effective from July 15, 2024.
Who is giving highest interest rate on FD? ›
Top Banks FD Interest Rates 2024
| FD Scheme | All Bank FD Interest Rates 2024 |
|---|
| HDFC Bank Tax Saving FD | 6.10% - 6.60% |
| IndusInd Bank Tax Saver Scheme | 6.75% - 7.50% |
| SBI Bank Tax Saving FD | 6.10% - 6.60% |
| RBL Bank Tax Saving FD | 6.55% - 7.05% |
8 more rowsSBI MF Top Rated Funds
- SBI Infrastructure Fund Direct-Growth. ...
- SBI Long Term Equity Fund Direct Plan-Growth. ...
- SBI Small Cap Fund Direct-Growth. ...
- SBI Magnum Mid Cap Direct Plan-Growth. ...
- SBI Large & Midcap Fund Direct Plan-Growth. ...
- SBI Multi Asset Allocation Fund Direct-Growth. ...
- SBI Banking & Financial Services Fund Direct-Growth.
10 lakhs. The Sum Assured that can be availed for Accidental Death Benefit and Total Permanent Disability benefit is a maximum of 120 times the gross monthly income or 10 times the gross annual income from gainful employment or occupation.
What is SBI annuity scheme? ›
Features. To enable the customer to deposit one-time lump sum amount and receive re-payment of the same in monthly annuity instalment comprising part of the principal amount plus interest. Premature payment allowed for the deposits up to Rs.15,00,000/-. Penalty chargeable, as applicable to Term Deposits.
What is the interest rate for 400 days fixed deposit? ›
The specific tenor scheme of “400 days” (Amrit Kalash) at Rate of Interest of 7.10 % w.e.f. 12- April- 2023. Senior Citizens are eligible for rate of interest of 7.60%.
What is the FD scheme for senior citizens in SBI? ›
SBI Amrit Kalash Fixed Deposit
Under this scheme, senior citizens are offered FD interest rates at 7.60% p.a. This scheme can be availed through SBI branch, internet banking and SBI YONO mobile banking app. Depositors can also avail loan facility under this scheme.
What is the special term deposit in SBI? ›
Special Term Deposit (STD) Account can be opened in the same way as the Term Deposit Account. The interest on the STD Account is compounded at quarterly intervals and principal and interest are paid on maturity. Minimum and maximum period of deposit may be 7 days and 120 months respectively.
What is the interest rate of Canara bank on 444 days? ›
Canara Bank FD Rates for Domestic & NRO Deposits of less than Rs 3 crore w.e.f. 11 June 2024
| FD Tenure | Interest Rates (% p.a.) |
|---|
| 180 days to 269 days | 6.15 | 6.65 |
| 270 days to less than 1 year | 6.25 | 6.75 |
| 1 year | 6.85 | 7.35 |
| 444 days | 7.25 | 7.75 |
8 more rows