The State Bank of India (SBI), India’s largest public sector bank, provides a wide array of fixed deposit (FD) schemes designed to cater to different financial goals and timelines. One such offering is the 210-day Fixed Deposit scheme—a short-term investment plan that strikes an effective balance between liquidity and steady returns. Ideal for individuals who seek a secure and low-risk avenue for parking surplus funds over a brief period, the 210-day FD is gaining popularity among both regular investors and senior citizens.
This scheme allows investors to deposit a minimum of ₹1,000 with no upper limit, offering flexibility in investment size. As of June 2024, SBI offers an interest rate of 6.25% per annum for the general public and 6.75% for senior citizens, making it a relatively attractive option compared to standard savings accounts or ultra-short-term instruments. The interest can be received at maturity or periodically, depending on the investor’s choice.
Moreover, the 210-day FD comes with features like premature withdrawal (with applicable penalties), nomination facilities, and tax deducted at source (TDS) for interest earnings above a certain threshold. Overall, it serves as a reliable choice for those looking to earn fixed returns without locking in funds for the long term.
📌 What is the 210-Day FD Scheme?
The 210-day FD is a term deposit offered by SBI with a tenure of approximately seven months. This scheme is ideal for investors looking to park their funds for a short duration while earning a fixed interest.
💰 Interest Rates (Effective from June 15, 2024):
As of June 2024, the interest rates for the 210-day FD scheme are as follows:
- General Public: 6.25% per annum
- Senior Citizens: 6.75% per annum
Note: Senior citizens enjoy an additional 0.50% interest over the standard rates.
🏦 Key Features:
- Minimum Deposit: ₹1,000
- Maximum Deposit: No upper limit
- Interest Payment: Quarterly or at maturity
- Premature Withdrawal: Allowed with a penalty of 0.50% for deposits up to ₹5 lakh
- Nomination Facility: Available
- Tax Deducted at Source (TDS): Applicable if interest income exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
🧮 Returns Calculation:
For a ₹1,00,000 investment in the 210-day FD scheme at an interest rate of 6.25%:
- Interest Earned: ₹6,250
- Maturity Amount: ₹1,06,250
Note: The actual returns may vary based on the interest-compounding frequency and tax implications.
📊 Comparison with Other Short-Term FDs:
| Tenure | SBI Interest Rate (General Public) |
|---|---|
| 7 days to 45 days | 3.50% |
| 46 to 179 days | 5.50% |
| 180 to 210 days | 6.25% |
| 211 days to <1 year | 6.50% |
✅ Why Choose the 210-Day FD?
- Short-Term Investment: Ideal for those looking to invest funds for a period shorter than a year.
- Attractive Returns: Offers competitive interest rates compared to savings accounts.
- Safety: Deposits are backed by the Government of India, ensuring capital safety.
- Liquidity: Provides a balance between earning interest and accessing funds when needed.
📝 Final Thoughts:
The 210-day FD scheme by SBI is a prudent choice for investors seeking short-term investment avenues with guaranteed returns. It combines the benefits of fixed returns, safety, and liquidity, making it suitable for various financial goals. Before investing, it’s advisable to compare the current interest rates and consider your financial objectives to make an informed decision.
Note: The information provided is based on the latest available data as of June 2024. Interest rates and terms are subject to change; please refer to the official SBI website or contact the bank for the most current details.
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