SBI Increases Fixed Deposit Interest Rates: Calculate Potential Earnings for Periods Ranging from 46 Days to 1 Year

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Exploring State Bank of India's Fixed Deposit Interest Rates: Calculating Potential Earnings Over Various Maturity Periods

State Bank of India, as the nation's largest lender, has recently adjusted its fixed deposit (FD) interest rates for specific maturity periods, with increments ranging from 0.25 percent to 0.75 percent. These revised rates took effect on Wednesday, May 15.

Understanding SBI FD Interest Rates:

The interest rates for FDs below Rs 2 crore have been revised for three distinct tenures: 46 days to 179 days, 180 days to 210 days, and 211 days to less than 1 year.

Interest Rate Calculation for FDs of Rs 5 Lakh:
Let's delve into the calculations for the interest earned on an FD of Rs 5 lakh across these different maturity periods:

For 46 days to 179 days (Interest rate: 5.50%)

With an interest rate of 5.50% per annum, an FD of Rs 5 lakh for 179 days yields an interest of Rs 13,575. Upon maturity, the total amount becomes Rs 5,13,575.
For 180 days to 210 days (Interest rate: 6%)

At an interest rate of 6% per annum, an FD of Rs 5 lakh for 210 days generates an interest of Rs 17,428. Upon maturity, the total amount becomes Rs 5,17,428.
For 211 days to less than 1 year (Interest rate: 6.25%)

Considering an FD of Rs 5 lakh for less than 1 year at an interest rate of 6.25% per annum, the accrued interest amounts to Rs 31,728. Upon maturity, the total amount becomes Rs 5,31,728.
It's important to note that while the highest interest rate is currently available for a tenure of 2 years to less than 3 years, it remains unchanged at 7%. Senior citizens continue to receive the highest interest rate of 7.50% in this tenure, as well as for tenures ranging from 5 years up to 10 years.

Disclaimer: The information provided above serves an educational purpose and should not be considered as financial advice. Before making any investment decisions, individuals should consult with certified financial experts or advisors.







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