SBI Fixed Deposit Scheme – In today’s uncertain financial landscape, finding a secure and predictable investment option is crucial for building wealth steadily. Among the most trusted avenues in India is the Fixed Deposit (FD) scheme offered by the State Bank of India (SBI). With assured returns, low risk, and flexible tenures, SBI FDs continue to attract both first-time investors and seasoned savers. But how long will it take to earn ₹1.75 lakh interest on a ₹5 lakh FD investment? That’s what we explore in this article.
Whether you are planning for a future expense, saving for your child’s education, or simply want a guaranteed return without the volatility of the market, SBI’s FD options offer a solid foundation. Unlike market-based instruments, fixed deposits come with the benefit of capital safety, assured interest, and a choice of tenures. Depending on the interest rate applicable during the time of deposit, your investment can grow considerably.
As of 2025, SBI offers FD interest rates ranging between 6.5% and 7.5% for different tenures, with senior citizens eligible for slightly higher rates. If you’re aiming to earn ₹1.75 lakh interest on a ₹5 lakh FD, the time it takes can vary based on the prevailing interest rate and the compounding frequency. In this comprehensive article, we break down the calculations, compare tenures, and help you understand the best strategies to achieve this financial milestone.
Let’s dive deeper into SBI’s FD rates, tenure choices, maturity calculations, and more – all in a reader-friendly, easy-to-understand format.
Understanding SBI Fixed Deposits and Their Features
SBI Fixed Deposits are popular among investors seeking a low-risk, steady return. Here’s what makes them an attractive option:
- Offers interest rates between 6.5% to 7.5% (as of July 2025)
- Available for tenures ranging from 7 days to 10 years
- Minimum deposit starts from ₹1,000
- Senior citizens enjoy an additional 0.50% interest
- Option for monthly, quarterly, or cumulative interest payout
- Tax Saver FDs offer deductions under Section 80C (up to ₹1.5 lakh)
Types of SBI Fixed Deposits
Different FD schemes cater to various investor needs. Here are the primary types:
- Regular Term Deposit
- Tax Saving FD (5 years lock-in)
- Annuity Deposit Scheme
- Special Term Deposit for Senior Citizens
- SBI Multi Option Deposit (MOD)
How Long to Earn ₹1.75 Lakh on ₹5 Lakh Investment?
To reach ₹1.75 lakh in interest on a ₹5 lakh FD, the tenure and interest rate play a crucial role. Let’s look at how long it takes under different scenarios.
| Interest Rate | Tenure (in Years) | Total Interest Earned | Maturity Amount |
|---|---|---|---|
| 6.5% | 6.0 | ₹1,75,163 | ₹6,75,163 |
| 6.75% | 5.8 | ₹1,75,482 | ₹6,75,482 |
| 7.0% | 5.5 | ₹1,75,891 | ₹6,75,891 |
| 7.25% | 5.3 | ₹1,75,032 | ₹6,75,032 |
| 7.5% | 5.1 | ₹1,75,680 | ₹6,75,680 |
| 7.5% (Senior) | 4.8 | ₹1,75,242 | ₹6,75,242 |
| 7.75% | 4.5 | ₹1,75,150 | ₹6,75,150 |
| 8.0% | 4.3 | ₹1,75,680 | ₹6,75,680 |
Key Assumptions
- Interest compounded quarterly
- Interest not withdrawn until maturity
- No premature withdrawal
Ideal Tenure and Rate to Achieve Target Faster
Looking for the fastest route to earn ₹1.75 lakh in interest? Let’s analyze the best combination of tenure and rate.
Best Options Based on Current Rates
- 7.5% rate requires around 5.1 years
- Senior citizens at 7.75% need only 4.5 years
- Higher rates mean shorter investment periods
| FD Type | Rate (%) | Tenure Needed | Total Interest |
|---|---|---|---|
| Regular FD | 7.5% | 5.1 years | ₹1.75 Lakh |
| Senior Citizen FD | 7.75% | 4.5 years | ₹1.75 Lakh |
| Special FD Offers | 8.0% | 4.3 years | ₹1.75 Lakh |
SBI Senior Citizen FD Benefits and Strategy
Senior citizens can benefit from higher interest rates and flexible maturity options. Here’s why it’s a smart move:
Additional Perks for Seniors
- Extra 0.50% interest on regular FD rates
- Eligibility starts at age 60
- Higher returns in shorter timeframes
- Quarterly interest payout for income planning
Taxation and TDS on FD Returns
Earning interest is great, but you must account for taxes. Here’s how taxation works on your SBI FD returns.
Tax Rules on FD Interest
- Interest above ₹40,000 (₹50,000 for seniors) is subject to TDS at 10%
- Submit Form 15G/15H to avoid TDS if annual income is below taxable limit
- Interest is fully taxable as per your slab rate
- Tax Saver FDs offer tax benefits under 80C but have a 5-year lock-in
How to Invest in SBI FD and Choose the Right Plan
Investing in SBI FDs is simple and can be done online or offline. Here’s how to begin.
Online Investment Process
- Log in to SBI Net Banking or YONO App
- Navigate to ‘Fixed Deposit’ section
- Select deposit type and tenure
- Enter the amount (₹5 lakh or as preferred)
- Confirm and open the FD instantly
Offline Investment (Branch)
- Visit nearest SBI branch
- Fill the FD opening form
- Submit KYC and PAN details
- Provide cheque or cash for deposit
Important Departmental Contact Information
In case of queries or issues related to your FD, you can contact SBI’s customer support through the following:
| Department | Contact Details |
|---|---|
| Customer Care | 1800 1234 / 1800 2100 |
| Email Support | [email protected] |
| Branch Locator | https://sbi.co.in/web/locator |
| Grievance Redressal | https://crcf.sbi.co.in/ccf/ |
| Senior Citizen Desk | Available at major SBI branches |
Frequently Asked Questions
Q1. What is the current interest rate on SBI FD?
A. As of July 2025, it ranges between 6.5% to 7.5% for general public.
Q2. How can I calculate the interest earned on my FD?
A. Use SBI’s FD calculator online to get exact figures based on tenure and amount.
Q3. Is TDS deducted on SBI FD interest?
A. Yes, if your total interest exceeds ₹40,000 (₹50,000 for senior citizens) annually.
Q4. Can I break my FD before maturity?
A. Yes, but you may lose some interest and incur penalties depending on tenure.
Q5. Is there a minimum lock-in period for SBI FD?
A. Yes, the minimum period is 7 days. Tax Saver FDs have a 5-year lock-in.
