Fixed deposits continue to be a popular choice for investors looking for relatively predictable returns without taking direct exposure to the stock market. State Bank of India offers a special 444-day fixed deposit scheme, known as Amrit Vrishti, for customers looking for a medium-term deposit option.
For a regular customer depositing ₹2 lakh under the 444-day scheme, the applicable interest rate is currently 6.45% per annum. Senior citizens are eligible for a higher rate of 6.95%, subject to the scheme's applicable conditions.
What Happens to a ₹2 Lakh Deposit?
Suppose a regular customer places ₹2 lakh in the 444-day SBI FD at 6.45% per annum. Because fixed-deposit interest is calculated according to the bank's applicable compounding methodology, the final maturity amount is higher than a simple-interest calculation.
On an indicative calculation, the deposit can grow to approximately ₹2.16 lakh by the end of the 444-day period. That represents interest of roughly ₹16,000–₹16,200 on the original ₹2 lakh investment, before considering any applicable tax or TDS.
The exact maturity figure shown by SBI at the time of booking should be treated as the final amount because the bank's calculation can depend on its applicable compounding and deposit-payment conventions.
Senior Citizens Get an Additional Rate Benefit
The scheme offers a higher interest rate to eligible senior-citizen depositors. Under the currently published rates, the 444-day Amrit Vrishti deposit carries an interest rate of 6.95% for senior citizens, compared with 6.45% for regular customers.
This additional interest can make a noticeable difference over the full tenure, although the actual maturity amount will depend on the bank's calculation and the customer's eligibility.
Is the 444-Day FD Available for Everyone?
The special 444-day deposit is part of SBI's domestic retail term-deposit offerings. SBI's published rate table places the scheme separately from its standard maturity periods and specifies the applicable rates for regular and senior-citizen customers.
The rate is not permanently fixed for future deposits. SBI can revise its deposit rates, meaning investors should check the rate applicable on the date they actually open the FD rather than relying on an older calculation.
Tax and Premature Withdrawal Matter
The interest earned from an FD can have tax implications depending on the depositor's overall income and applicable tax rules. TDS may also apply when the relevant threshold and conditions are met.
Investors should also consider liquidity before locking money into an FD. SBI has rules governing premature withdrawal, including applicable penalties, so withdrawing the deposit before maturity can reduce the effective return.
Bottom Line
A ₹2 lakh SBI FD for 444 days at 6.45% can produce a maturity value of roughly ₹2.16 lakh for a regular customer, based on an indicative calculation. Senior citizens receive a higher applicable rate of 6.95%.
The 444-day option may appeal to savers who want a defined investment period and fixed-deposit returns, but the applicable interest rate, maturity amount, taxation and withdrawal conditions should all be checked before opening the deposit.
