SBI’s New 35-Month FD: High Returns and Safe Interest Rates!
The State Bank of India (SBI), India’s largest public-sector bank, has introduced a special Fixed Deposit (FD) option for those looking for secure and reliable returns. This new 35-month FD scheme is attracting attention because it offers an attractive interest rate of around 6.45% for deposits made for a period between 2 years and less than 3 years. Many people are considering using this scheme for their family’s financial planning, especially by opening the FD in the wife’s name.
With guaranteed earnings, deposit insurance, and potential tax benefits, this FD option is becoming a popular low-risk investment for families seeking stable financial growth.
This update is timely, as many individuals are searching for dependable savings options that are not affected by market changes. SBI’s goal is to provide a secure investment environment with predictable returns upon maturity. For example, a ₹2 lakh deposit over 35 months can grow to ₹2,41,034.90, offering a fully guaranteed and risk-free return. For many Indian families who depend on fixed-income savings, this scheme offers both financial security and stability. The combination of safety, convenience, and potential tax advantages makes the 35-month SBI FD an appealing choice for investors in both urban and rural areas.
SBI 35-Month FD: Interest Rate, Returns & Safety Features
The new 35-month FD scheme offers an interest rate of approximately 6.45%, making it one of the better-paying fixed deposit options currently available from SBI. This rate is applicable to general customers for deposit tenures between 2 years and less than 3 years. For investors seeking safe and predictable returns, this FD protects their capital while providing a steady growth rate. For instance, a ₹2 lakh deposit will grow to ₹2,41,034.90 at maturity, generating over ₹41,000 in interest. These returns are fully guaranteed and are not subject to market fluctuations, unlike investments in mutual funds or stocks. This makes the scheme ideal for individuals who prefer low-risk options and for families planning their finances.
Safety is a key advantage of choosing an SBI Fixed Deposit. SBI is India’s largest and most trusted bank, and its deposits are insured by the DICGC for up to ₹5 lakh per depositor. This ensures that customer funds remain secure under all circumstances. Additionally, SBI offers the convenience of premature withdrawal, nomination facilities, and easy online management through internet banking and mobile apps. For families looking to protect their emergency funds or save for future expenses like education, healthcare, or travel, the 35-month FD is a well-rounded savings option that combines reliability with decent returns.
Tax Advantages of Opening an FD in Wife’s Name
One of the most discussed benefits of SBI’s FD scheme is the potential tax savings when the deposit is opened in the wife’s name. This strategy can help many families reduce their tax liability because the interest earned on the FD is considered as the income of the primary account holder. If the wife is in a lower tax bracket or has no taxable income, the interest earned on her FD may be either tax-free or taxed at a lower rate. This can be more beneficial than holding the FD in the husband’s name, where higher income levels could lead to a greater tax burden.
Furthermore, the bank only deducts TDS (Tax Deducted at Source) when the total interest earned exceeds ₹40,000 in a financial year. Housewives and women without income can submit Form 15G to avoid TDS deductions altogether. A joint FD with the wife as the primary holder offers the same tax advantages. While the investment remains safe and easily accessible, the income tax benefits can significantly improve overall returns. For couples seeking smart, long-term financial planning strategies, opening the FD in the wife’s name is a practical and effective approach.
Why SBI’s FD is Ideal for Family Financial Planning
Families planning for future expenses often prefer reliable savings options that are not affected by market volatility. SBI’s 35-month FD is a perfect fit because it offers guaranteed returns, safety, and tax-efficient income when structured correctly. The maturity period of just under three years makes it suitable for mid-term goals such as children’s education fees, medical expenses, home improvements, or travel plans. Since the FD is secure and interest rates are fixed, families can calculate their maturity amount in advance and plan accordingly.
The FD is also beneficial for building financial security for spouses. Opening an FD in the wife’s name not only enhances her financial independence but also supports long-term wealth accumulation. With convenient online booking options, the process is quick, transparent, and easy. The added security of government-backed deposit insurance further increases investor confidence. Whether used as a savings cushion or a planned investment, SBI’s new 35-month FD is becoming a reliable financial tool for families aiming for stability and disciplined savings.
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Disclaimer: This article is for informational purposes only and should not be considered financial advice. Interest rates and schemes may change based on bank policies. Investors are advised to consult financial experts or verify details directly with SBI before making any investment decisions.
Source: SBI Launches 35-Month Special FD scheme, offers bumper Returns along with Interest.
