SBI FD Interest Calculation: Rates, Quarterly Compounding & Returns
By Pradipta Ray · Published
State Bank of India (SBI), India's largest commercial lender, offers competitive fixed deposit rates across tenures ranging from 7 days to 10 years. Here is the exact mathematical mechanism SBI uses to calculate maturity value and interest.
When you open a fixed deposit with State Bank of India, your money is backed by the sovereign stability of India's largest public sector bank. Understanding how SBI computes quarterly interest compounding helps you pick the most profitable deposit tenure.
Direct Answer: SBI computes fixed deposit maturity using quarterly compounding: A = P × (1 + r/400)^(4n). At an official rate of 6.80% p.a. on a 1-year ₹1,00,000 deposit, your maturity value is ₹1,06,975 (interest: ₹6,975, effective yield: 6.98%).
SBI FD Maturity Values on ₹1 Lakh (at 6.80% p.a.)
| Tenure | Interest Rate (General) | Interest Rate (Senior) | General Maturity Value | Senior Maturity Value |
|---|---|---|---|---|
| 1 Year (365 days) | 6.80% | 7.30% | ₹1,06,975 | ₹1,07,502 |
| 2 Years | 7.00% | 7.50% | ₹1,14,888 | ₹1,16,022 |
| 3 Years | 6.75% | 7.25% | ₹1,22,239 | ₹1,24,082 |
| 5 Years (Tax Saver) | 6.50% | 7.50% | ₹1,38,042 | ₹1,44,995 |
| 10 Years | 6.50% | 7.50% | ₹1,90,556 | ₹2,10,235 |
SBI 'Amrit Kalash' and Special Tenure Schemes
SBI periodically introduces special deposit schemes like Amrit Kalash (400 days tenure) offering an attractive rate of 7.10% for general public and 7.60% for senior citizens. Because the interest compounds quarterly, the effective annual yield reaches approximately 7.29% to 7.82%.
Key Points to Note for SBI Depositors
TDS deduction: SBI deducts 10% TDS if your total annual interest across all SBI branches exceeds ₹40,000 (₹50,000 for senior citizens).
Form 15G/15H: Submit Form 15G/15H via SBI YONO app or net banking at the start of April if your total taxable income is below basic exemption limits.
SBI WeCare: Senior citizens get an extra 50 bps premium (total 100 bps over general rate) on tenures of 5 years and above under the SBI WeCare scheme.
Frequently asked questions
What is SBI's peak FD interest rate?
How does SBI compound fixed deposit interest?
What is the penalty for breaking an SBI FD before maturity?
Calculators for this
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Authoritative Sources
- State Bank of India Official Term Deposit Rates· verified 1 September 2026
- Reserve Bank of India Master Direction on Deposits· verified 1 August 2026