New Delhi – Fixed deposits have long been a cornerstone of conservative Indian investment portfolios, renowned for their stability and guaranteed returns. The State Bank of India (SBI), India’s largest public-sector bank, has released its fixed deposit rates for the year 2024, catering to both common individuals and senior citizens with tailored returns for various investment tenures.
For those looking to park their funds in short-term fixed deposits, SBI has delineated rates for periods ranging from as brief as a week to just under a year. Starting from the smallest tenure, investments locked in for 7 to 45 days will yield a return of 3.5 percent for regular investors, whereas senior citizens will receive a more favorable rate of 4 percent for the same duration.
Investors who prefer a marginally longer commitment, opting for fixed deposits that mature between 46 and 179 days, will benefit from a 4.75 percent return. Senior citizens are again provided an augmented rate, standing at 5.25 percent.
As one progresses into the mid-term deposit brackets, SBI has structured its rates to remain competitive. A fixed deposit held for 180 to 210 days is assigned a return rate of 5.75 percent; seniors can expect a stronger 6.25 percent. The pattern of offering an additional 0.5 percent to the elderly continues, incentivizing longer term savings for those in their retirement years.
Considering a slightly elongated investment timeline, an FD with maturity ranging from 211 days to less than a year will procure a 6 percent return for the general public, while senior citizens will gain from a 6.5 percent interest rate.
The attraction towards fixed deposits notably increases with SBI’s longer-term offerings. Deposits with a one-year to under two-year maturity period fetch a 6.8 percent return. This jumps to 7 percent for deposits maturing between two and under three years.
SBI’s long-term deposit options extend up to 10 years, with rates fluctuating slightly based on the duration. The bank provides a stable return of 6.75 percent for time spans of three years up to just under five years. For the most elongated term available, ranging from five to ten years, the rate is set at 6.5 percent for regular depositors, while senior citizens once again benefit from an enhanced rate of 7.5 percent.
The pinnacle of SBI’s fixed deposit returns is embodied within their Amrit Kalash Scheme, boasting the supreme yield of 7.1 percent. This scheme stands as the flagship investment avenue for those seeking the highest returns on their FDs.
Encapsulating the various investment horizons, these rates apply to fixed deposits below Rs 2 crore. It is pertinent for potential depositors to note that while these rates have been finalized for the year 2024, they are subject to change as per the financial policies dictated by prevailing market conditions.
Fixed deposits remain a coveted investment route for scores of Indians due to their risk-averse nature and assured income, and SBI’s latest rates for 2024 aim to uphold this tradition. Senior citizens, in particular, stand to gain from the preferential rates offered, making SBI’s FD options a compelling choice for the demographic.
While other investment options like equities and mutual funds capture headlines with promises of high returns, fixed deposits stay relevant by offering investment security and peace of mind. SBI’s announcement of FD rates for 2024 is a welcome update for investors aiming to consolidate their financial planning for the forthcoming year.
