SBI FD: Know maturity on Rs 1 lakh investment

Investors often consider State Bank of India (SBI) fixed deposit (FD) schemes, seeking to know the maturity amount for their investments. This amount hinges on the interest rate and the tenure of the FD. For a Rs 1 lakh investment, the maturity figures vary depending on the chosen term.

For a one-year FD, the interest rate is 6.25% for general citizens and 6.75% for senior citizens. This leads to a return of ₹6,398 for a general citizen and ₹6,923 for a senior citizen, resulting in a maturity amount of ₹1,06,398 and ₹1,06,923 respectively.

Three-year FDs offer a slightly higher rate for general citizens at 6.30% and senior citizens at 6.80%. Consequently, a general citizen would earn ₹20,626, growing their investment to ₹1,20,626, while a senior citizen would earn ₹22,420, making their total ₹1,22,420.

For five-year FDs, the interest rate for general citizens is 6.05%, whereas senior citizens receive 7.05%. This results in a return of ₹35,018 for a general citizen, leading to a maturity amount of ₹1,35,018. For a senior citizen, the return is ₹41,826, making the maturity amount ₹1,41,826.

A ten-year FD, regardless of the investor's age, carries a rate of 6.05% for general citizens and 7.05% for senior citizens. A general citizen would earn ₹82,298, resulting in a maturity amount of ₹1,82,298. For senior citizens, the return is ₹1,01,146, leading to a maturity amount of ₹2,01,146.

However, it's important to note that these maturity amounts are pre-tax. Interest earned on FDs is subject to taxation based on the individual's income tax bracket. The tax payable depends on the total taxable income and the applicable tax regime. Banks deduct tax at source (TDS) if the senior citizen's interest income exceeds ₹1 lakh in a financial year. Senior citizens can avoid TDS by submitting Form 15H or Form 121, depending on their income tax regime.