SBI Fixed Deposit Scheme : In a surprising move, the State Bank of India (SBI), India’s largest public sector bank, has discontinued its popular high-interest fixed deposit (FD) scheme that offered an attractive 7.60% annual return. This FD plan, which had garnered widespread attention for its competitive rates amidst fluctuating market trends, is no longer available, leaving many existing and potential depositors searching for the best next steps.
Let’s explore what this decision means, why SBI has taken this step, and how you can navigate your investment strategy going forward.
Why SBI Discontinued the 7.60% Fixed Deposit Scheme
The now-withdrawn FD scheme was primarily designed to attract senior citizens and long-term depositors by offering above-average interest rates. However, changing economic conditions, fluctuating repo rates, and evolving liquidity requirements have led SBI to reassess its deposit offerings.
Key Reasons Behind the Withdrawal:
- RBI’s interest rate stance is becoming more stable, prompting banks to align deposit rates accordingly.
- Liquidity in the banking system has improved, reducing the need for aggressive deposit mobilization.
- Alternative investment trends among customers are growing, leading to a shift in bank focus.
- Short-term deposit surge reduced the necessity for long-term high-rate deposits.
What Was the SBI Amrit Kalash FD Scheme?
This special deposit plan was launched as a limited-time offer and gained immense popularity for its lucrative interest rate. The scheme was called SBI Amrit Kalash, specifically tailored for domestic investors and non-resident Indians.
Features of the Amrit Kalash Scheme:
- Interest Rate: 7.60% p.a. for senior citizens; 7.10% for general customers
- Tenure: 400 days
- Premature Withdrawal: Allowed with penalty
- Auto-renewal Option: Available
- Eligibility: Domestic individuals, NRE/NRO customers
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Comparative Table: SBI FD Interest Rates Before and After the Change
| Customer Type | FD Tenure (Days) | Old Rate (Before Withdrawal) | New Rate (After Withdrawal) | Change |
|---|---|---|---|---|
| General Public | 400 | 7.10% | 6.80% | -0.30% |
| Senior Citizens | 400 | 7.60% | 7.30% | -0.30% |
| General Public | 1 Year | 6.80% | 6.80% | No Change |
| Senior Citizens | 1 Year | 7.30% | 7.30% | No Change |
| General Public | 2 Years | 6.75% | 6.75% | No Change |
| Senior Citizens | 2 Years | 7.25% | 7.25% | No Change |
| General Public | 5 Years | 6.50% | 6.50% | No Change |
| Senior Citizens | 5 Years | 7.00% | 7.00% | No Change |
Alternatives to the Discontinued SBI FD Scheme
While the 7.60% FD is no longer available, investors still have a range of options to consider. SBI and other banks continue to offer decent returns across various tenures. Here’s a look at what you can explore next.
Alternative Investment Options:
- SBI Regular Fixed Deposits
- Senior Citizen Savings Scheme (SCSS) – offering up to 8.2%
- Post Office Time Deposits
- Debt Mutual Funds
- Corporate FDs from reputed NBFCs
Comparison Table: Top FD Rates from Leading Banks (as of April 2025)
| Bank Name | Interest Rate (General) | Interest Rate (Senior Citizens) | Tenure |
|---|---|---|---|
| HDFC Bank | 7.00% | 7.50% | 3 Years |
| ICICI Bank | 7.10% | 7.60% | 2 Years |
| Axis Bank | 7.05% | 7.55% | 1 Year |
| Bank of Baroda | 6.85% | 7.35% | 2 Years |
| SBI | 6.80% | 7.30% | 400 Days |
| IDFC First Bank | 7.25% | 7.75% | 3 Years |
| Kotak Mahindra | 7.00% | 7.50% | 2 Years |
| Indian Bank | 6.90% | 7.40% | 1 Year |
What Should Existing SBI FD Customers Do?
If you’ve already booked an FD under the discontinued scheme, there’s no need to worry. Your FD will continue to earn interest at the agreed-upon rate until maturity.
Here’s what you should know:
- Your returns remain locked-in at 7.60% (for seniors) until the 400-day period ends.
- No impact on existing deposits, only new deposits will follow revised rates.
- Consider laddering your FDs to manage rate volatility in future investments.
Tips for FD Investors in the Current Scenario
With changing interest rate dynamics, being strategic with your investments is more crucial than ever. Here are some actionable tips:
- Avoid long-term lock-ins unless the interest rate is very attractive.
- Diversify: Mix FDs with mutual funds, bonds, and other safer instruments.
- Reassess frequently: Track policy changes by RBI and react quickly.
- Use FD ladders: Break your total investment into multiple FDs with different maturities.
- Consider senior citizen schemes: These still offer competitive interest rates and additional benefits.
Final Thoughts: Should You Still Consider SBI for Fixed Deposits?
While the withdrawal of the 7.60% FD plan may seem like a setback, SBI remains one of the most trusted banking institutions with strong financial offerings. The bank continues to provide stability, security, and relatively good returns, especially for risk-averse investors.
Key Takeaways:
- SBI’s high-interest Amrit Kalash scheme has been withdrawn as of April 2025.
- Investors should explore alternative FD schemes or savings instruments for better returns.
- Senior citizens still have good options through government-backed schemes and select banks.
- Always compare interest rates and flexibility before locking your funds.
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