Amrit Kalash SBI: 400 Days Special FD Scheme [Compound Interest]

Amrit Kalash SBI

Introduction

India’s largest Public sector bank, State Bank of India (SBI) has re-introduced its Special deposit scheme I.e. Amrit Kalash.

Earlier, SBI introduced this special Fixed Deposit scheme for a specific period. i.e. for 44 days only i.e. From 15th February 2023 to 31st Mar 2023.

Later on, the SBI Amrit Kalash scheme was re-introduced and let’s see How much amount can be deposited, What is the period, How much interest can be earned, How this Amrit Kalash FD scheme is different from the regular FD scheme, and a lot more.!!

Let’s get started..!!

Overview of Amrit Kalash SBI?

S.No.	Particulars	Description
1.	Scheme Name	SBI Amrit Kalash
2.	Launched by	State Bank of India (SBI)
3.	Type of scheme	Retail Special Deposit scheme
4.	Minimum Deposit	Rs.1,000/- only
5.	Maximum Deposit	less than Rs.2 Crores
6.	Interest rate	7.10% – General citizens & 7.60% – Senior citizens and SBI staff and staff pensioners.
7.	Interest type	Quarterly compounding basis
8.	TDS	Applicable as per Income Act act, 1961
9.	Pre Mature Withdral	Available
10.	Loan	Available

What is Amrit Kalash SBI?

SBI Amrit Kalash Scheme is a retail special deposit scheme. Under this scheme, the SBI customers can deposit a lumpsum amount and must hold it for a fixed period of 400 days.

How it’s different from a Regular Fixed Deposit scheme..!!
Generally, if you create a regular fixed deposit (FD), the interest rates vary depending on the period you choose.

The period of deposit i.e. how long you deposit money in a regular FD is completely the customer’s choice.

Whereas, in Amrit Kalash SBI, the Interest rate and the period, both are constant. The only thing you can choose is the Amount of deposit.

Then, how much interest one can earn?

SBI Amrit Kalash FD Interest rates

The State Bank of India (SBI) offers interest @ 7.10% p.a. to the General citizens & 7.60% interest to Senior citizens and staff and staff pensioners of SBI.

The interest will be paid at Monthly, Quarterly, and Semi-Annual intervals. The interest in this Amrita Kalash is calculated on a Quarterly compounding basis.

In the case of Regular fixed deposits, the interest will be paid at Monthly, Quarterly, and Semi-annual intervals. Whereas, in this Amrit Kalash SBI deposit scheme, the interest earned on this deposit will be paid at Maturity time.

Is there any limit on the amount of the deposit?
Keep on reading..!!

SBI Amrit Kalash Minimum deposit

The Minimum amount to deposit in SBI Amrit Kalash is Rs.1,000 only.

It is a single deposit type only as you deposit a regular fixed deposit. And no need to deposit money a regular intervals.

SBI Amrit Kalash Maximum deposit

The Maximum amount to deposit in SBI Amrit Kalash is up to Rs.2 crores only. The SBI Customers can make Domestic Retail Term Deposits including NRI Rupee Term Deposits.

I have an SBI Savings bank account, Can I deposit in this scheme.!!

Who is eligible for Amrit Kalash SBI

Amrit Kalash SBI scheme is eligible for regular retail investors including the senior citizens. Therefore, SBI Customers with a Regular Savings bank account can open this fixed deposit in their name.

Will I get any tax implications on my Interest portion?
Let’s see..!!

SBI Amrit Kalash TDS applicability

The Tax deducted at source (TDS) will be applicable as per the Income-tax Act,1961 and your interest portion will be credited to the customer account after deducting the applicable TDS.

If the interest paid to the regular citizens by the bank is more than Rs.40,000, then 10% TDS will be deducted. For senior citizens, a 10% TDS will be deducted if the interest earned amount exceeds Rs.50,000.

Banks will deduct the TDS portion and will pay you only the balance interest portion.

SBI Amrit Kalash Premature Withdrawal

Can I withdraw the money deposited amount before 400 days period..!!

In case you money requirement, you can prematurely withdraw the amount deposited in Amrit Kalash SBI. The terms and conditions applicable on Retail term deposit will be applicable here.

Loan Facility

SBI customers can avail Loan facility on the amount they deposited in Amrit Kalash. To avail loan on this deposit, it is better to contact your home branch.

Moreover, you can deposit this special term deposit in SBI branches or through Internet banking or Yono banking.

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SBI Amrit Kalash Scheme Last date

The late date to deposit your lump sum amount in the Amrit Kalash SBI scheme is available till 30th September 2024.

SBI Amrit Kalash vs FD: Which is better?

If I create a new FD in SBI, Which FD is better..!!

SBI Amrit Kalash scheme & Regular Fixed deposit scheme both are Fixed deposit schemes only. The former is the Special deposit scheme and the latter is a regular deposit scheme.

The regular FD scheme of SBI offers retail term deposits with 3-7.50% interest for a period of 7 days to 10 years to regular citizens (on average) and 3.5-7.5% interest to Senior citizens (on average).

If you want to earn 7% interest through regular fixed deposits, you have to hold your deposit for at least a 2-year term. i.e. for 730 days.

Whereas, in the SBI Amrit Kalash deposit scheme, you can earn almost 7.10% interest within 1 year and 1 month (approx) i.e. 400 days period.

Therefore, if you are a deposit holder, who wants to make a fixed deposit under Rs.2 crores can deposit some portion of your money in this Amrit Kalash deposit SBI as you get more interest in a lesser period.

The Regular FD will pay Simple Interest. The SBI Amrit Kalash FD scheme will pay Compound Interest.

Simple Interests won’t make your Rich but Compound Interests can.

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Conclusion

SBI Customers having a huge amount in hand can try this special fixed deposit scheme for sure. For people who are looking for the highest interest-paid FD schemes in SBI, I highly recommend this scheme.

If you cannot wait for the long term, this Amrit Kalash SBI scheme is not for you. Then, you can check the latest bank fixed deposit rates below.

Frequently Asked Questions

I hope you understand the “SBI Amrit Kalash” concept.
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