The State Bank of India has extended the deadline for its Amrit Kalash special fixed deposit scheme till December 31, 2023. The SBI Amrit Kalash scheme offers 7.1 per cent interest on retail term deposits under Rs 2 crore for a period of 400 days.

“The specific tenor scheme of 400 day” (Amrit Kalash) at Rate of Interest of 7.1 per cent w.e.f. 12- April- 2023. Senior Citizens are eligible for a rate of interest of 7.6 per cent. The Scheme will be valid till 31 December 2023,” the bank said in a recent notification.

Here is everything investors need to know about the features of the deposit and other details.

Features of SBI Amrit Kalash scheme

The scheme can be opened for 400 days on:

i) Domestic Retail Term Deposits including Non-Resident Indian Rupee Term Deposits less than Rs 2 crore

ii) New and Renewal Deposits

iii) Special Term Deposit and Term Deposit

Interest rate on SBI Amrit Kalash Scheme

The interest rate on the FDs under the Amrit Kalash scheme is 7.1 per cent for regular customers. Senior citizens, staff pensioners and the bank’s staff are eligible for an additional 0.5 per cent interest.

Tax deducted on SBI Amrit Kalash FD maturity

Tax deducted at source (TDS) is applicable on the Amrit Kalash scheme as per the Income Tax Act. Tax will be applicable if the interest amount accrued is over Rs 10,000 annually.

Interest payment of SBI Amrit Kalash scheme

For special term deposits, the interest is credited on maturity. For term deposit, the money will be deposited into the customer’s bank account on a monthly/ quarterly/half yearly basis.

Premature withdrawal on SBI Amrit Kalash scheme

Premature withdrawal is available on the State Bank of India Amrit Kalash Scheme. Loan facility is also offered on the deposit.

SBI Amrit Kalash scheme: How to invest

Customers can invest in the SBI Amrit Kalash scheme by either visiting the  local branch of the bank or using the SBI YONO mobile app. The investors can also invest through net banking.

Another special scheme on offer- SBI Wecare plan for senior citizens

The SBI also has another special offer for senior citizens. The SBI Wecare scheme is open till September 30. The plan gives them an additional premium of 50 basis points (over and above existing premium of 50 bps) over card rate for general citizens i.e., 100 bps over card rate for public. The term deposit can be held for a minimum of 5 years and a maximum of 10 years. TDS will be calculated on the SBI Wecare deposit according to the Income Tax Act.

SBI interest rates on term deposits

The State Bank of India is offering interest between 3 and 7 per cent on its fixed deposits, with the exception of the Amrit Kalash scheme.