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The SBI Amrit Vrishti Scheme is a limited-period fixed deposit (FD) plan launched by the State Bank of India (SBI) on July 16, 2024. The scheme offers competitive interest rates and is available until March 31, 2025. This 444-day term deposit scheme promises to provide attractive returns, making it an excellent option for short-term savers.

Key Features of the Scheme:

• Term Duration: 444 days (a little over 14 months).
• Interest Rate:
  • General Customers: 7.25% per annum.
  • Senior Citizens: 7.75% per annum.
• Minimum Investment: ₹1,000 (no maximum limit).
• Eligibility: Available to domestic and NRI customers.
• Type of Deposit: Applicable to new deposits and renewal of existing deposits. However, recurring deposits, tax-saving deposits, annuity deposits, and multi-option deposits are excluded from this scheme.

Interest Payment Options:

• Term Deposit: Interest can be received on a monthly, quarterly, or half-yearly basis, depending on the customer's preference.

Premature Withdrawal:

• Penalty for withdrawals:
  • Up to ₹5 lakh: 0.50% penalty.
  • Above ₹5 lakh and up to ₹3 crore: 1% penalty.
• No interest is provided if the deposit is withdrawn before 7 days.
• No penalty for SBI staff and pensioners.

Loan Facility:

• Customers can avail loan facilities against their deposits under the scheme.

Taxation:

• TDS (Tax Deducted at Source) will be applicable on the interest earned from the deposit.

How to Invest:

• Through SBI branches, YONO SBI and YONO Lite mobile apps, or SBI Internet Banking.

Is the Scheme Right for You?

• Short-Term Investment: The 444-day term is ideal for those looking for a good return in the short term.
• Not Suitable for Long-Term Investment: Since the interest rate is locked for this period, the scheme may not be suitable for those seeking long-term growth, especially because it does not offer renewal options.

If you are looking for a short-term, secure investment with a decent return, the SBI Amrit Vrishti Scheme can be an excellent choice.