State Bank of India launches a 444-day fixed deposit scheme, Amrit Vrishti, offering attractive rates for senior citizens with flexible payout options, but investors should consider early withdrawal penalties and tax implications.
State Bank of India’s 444-day fixed deposit, marketed as Amrit Vrishti, is pitched at savers who want a short lock-in and a guaranteed return. According to Informalnewz.com, the scheme is open to resident individuals, senior citizens, super senior citizens, eligible non-resident depositors and existing FD holders renewing funds, with deposits starting at ₹1,000 and going up to ₹3 crore. The bank says the special tenure is meant to offer a higher yield than many of its standard short-term retail deposits.
For the current rate cycle, the scheme pays 6.45% a year to the general public, 6.95% to customers aged 60 and above, and 7.05% to those aged 80 and above, reflecting the extra senior-citizen benefit highlighted in several rate trackers including Paisabazaar, Finmandi and ClearTax. Those sources also note that SBI’s broader FD rates vary by tenure, but the 444-day deposit remains one of the bank’s better-paying short-term options for retail customers.
Investors should still weigh the cost of breaking the deposit early. The bank’s rules, as reported by Informalnewz.com and echoed by other rate guides, allow premature withdrawal but impose a penalty of 0.50% on deposits up to ₹5 lakh and 1% above that threshold. If the money is withdrawn within seven days, no interest is paid. The scheme also offers monthly, quarterly or half-yearly payout choices, while the cumulative option compounds interest quarterly and is paid at maturity.
Tax remains an important part of the calculation. FD interest is taxed as part of overall income, and TDS can be deducted at 10% where PAN details are in place, or 20% if they are not. Senior citizens generally face a higher threshold before TDS applies, but the deduction is not the final tax bill; savers still need to report the income in their return and reconcile it against Form 26AS or AIS. That makes Amrit Vrishti a straightforward option for conservative investors, but not necessarily a simple one once tax and early-exit penalties are taken into account.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
