State Bank of India’s latest Fixed Deposit slab has become a popular choice among safe-return investors. With competitive FD interest rates for 2025 and long-term compounding benefits, a deposit of ₹1,00,000 can now yield a guaranteed return of up to ₹41,826 depending on the tenure chosen. SBI’s secure structure, predictable payouts and flexible tenure options make it ideal for retirees, salaried individuals and conservative investors.
SBI FD 2025: Returns Breakdown for a ₹1,00,000 Deposit
| Deposit Amount | Tenure | Interest Rate (Approx) | Total Interest Earned | Maturity Amount |
|---|---|---|---|---|
| ₹1,00,000 | 5 Years | 7.10% | ₹41,826 | ₹1,41,826 |
| ₹1,00,000 | 3 Years | 6.80% | ₹21,729 | ₹1,21,729 |
| ₹1,00,000 | 1 Year | 6.80% | ₹6,800 | ₹1,06,800 |
| Senior Citizen (5 Years) | 7.60% | ₹45,000+ | ₹1,45,000+ |
(Rates subject to bank-declared slabs)
Why SBI FDs Are Attracting Investors in 2025
SBI FDs offer guaranteed returns unaffected by market volatility. With rising demand for stable income options, more investors are shifting towards long-term fixed deposits. The bank’s reputation, safety and flexible interest-payout options add to its popularity among low-risk customers.
Who Should Consider SBI’s Fixed Deposit Scheme
Retirees, salaried professionals, homemakers, students saving emergency funds and small business owners prefer SBI FDs for assured returns. Senior citizens especially benefit from higher interest rates that enhance long-term income stability.
How to Earn ₹41,826 Interest on a ₹1 Lakh FD
Below is the single allowed bullet list summarizing the key steps and features:
• Choose a 5-year deposit tenure to maximize cumulative interest
• Senior citizens receive an additional rate boost (0.50% approx)
• Opt for reinvestment/compounding for the highest maturity value
• Maintain the FD for the full tenure to avoid premature withdrawal penalties
• Track interest rate changes to lock in higher slabs early
• Use multiple FDs for staggered maturity planning
• Keep your PAN and KYC updated to avoid TDS deduction issues
Tenure Selection and Interest Payout Options
Investors can choose between monthly, quarterly, annual or cumulative interest payouts. Monthly and quarterly payouts are ideal for those seeking regular income, while cumulative FDs generate the highest maturity returns.
Tax Rules on SBI Fixed Deposits
Interest earned on FDs is fully taxable. If the annual interest exceeds the threshold, TDS may apply unless Form 15G/15H is submitted. Senior citizens benefit from higher tax-exemption limits under Section 80TTB.
Why Long-Term Investors Prefer SBI Over Private Banks
SBI’s strong credit rating, wide reach and reliable service make it a stable choice compared to smaller or private banks. Government backing adds another layer of security for fixed-return investors.
Disclaimer: This article provides general informational coverage of SBI’s Fixed Deposit interest calculations and potential returns for 2025. Actual returns depend on the interest rate applicable at the time of booking, tenure selection and compounding cycle. Investors should verify final rates and terms directly with SBI or consult certified financial planners for personalized investment guidance.
