State Bank of India (SBI) pays interest rates to the tune of 4.5-6.75 per cent to customers on fixed deposits up to Rs 2 crore. These fixed deposits, also known as retail term deposits, are available in eight maturity options ranging from seven days to 10 years at the country's largest bank. SBI pays higher interest rates to senior citizens among its depositors. For example, on a fixed deposit up to Rs 2 crore of one year, SBI pays interest at the rate of 6.25 per cent to non-senior citizen customers and 6.75 per cent to senior citizen customers, according to its corporate website - sbi.co.in. (Also Read: Compare Bank FD Rates Paid By Peers Here)
State Bank of India (SBI) pays the following interest rates on retail fixed deposits:
(SBI FD Interest Rate: On fixed deposits of two years, SBI pays a 6.75 per cent return to senior citizens and 6.25 per cent to other customers, according to its website)
Investment in fixed deposits with a maturity period of five years offers income tax benefit up to Rs 1.5 lakh per financial year under Section 80C of the Income Tax Act. Interest income, however, is subject to income tax.
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