SBI FD Scheme 2026: Interest Rates, Returns on ₹1,00,000 & Key Benefits

Mumbai, February 2026: State Bank of India (SBI), the country’s largest public sector bank, continues to offer reliable fixed deposit (FD) options in 2026 for investors looking for safety, stability, and predictable returns. With interest rates remaining attractive for longer tenures, SBI FDs remain a preferred choice for conservative savers and retirees.

SBI FD Interest Rates in 2026 (Domestic Deposits)

SBI provides multiple tenure options for fixed deposits below ₹3 crore. The interest rates generally range between 6.00% and 6.50% per annum, depending on the maturity period.

1 year: around 6.25% p.a.
2–3 years: around 6.40% p.a.
Special tenure deposits (around 400–450 days): slightly higher rates, close to 6.45% p.a.
Senior Citizens: eligible for an additional 0.50% interest over regular rates

(Exact rates may vary slightly based on SBI notifications and RBI policy changes.)

How Much Will ₹1,00,000 Earn in an SBI FD?

If an investor deposits ₹1,00,000 in an SBI FD at an interest rate of around 6.40% per annum, the returns would be approximately:

1 year:
- Interest: ~₹6,400 (before tax)
5 years (with annual compounding):
- Maturity amount: ~₹1.37–₹1.42 lakh
- Total interest earned: ~₹37,000–₹42,000 (before tax)

The final amount depends on:

FD tenure
Interest rate applicable at booking
Compounding frequency

This makes SBI FDs suitable for investors who value certainty over market-linked risk.

Also Read: Canara Bank FD Scheme 2026: How ₹2,00,000 Can Grow with Fixed Interest

Why Investors Still Prefer SBI Fixed Deposits

High Safety: SBI is a government-owned bank with strong financial backing
Predictable Returns: No market volatility or capital risk
Flexible Options: Monthly, quarterly or cumulative interest payout
Loan Facility: Loans and overdrafts available against FD
Senior Citizen Advantage: Higher interest income for retirees

Tax Treatment of SBI FD Interest

FD interest is fully taxable as per the investor’s income tax slab
TDS applies if interest crosses the prescribed annual limit
Investors can submit Form 15G / 15H (if eligible) to avoid TDS

Who Should Consider SBI FDs in 2026?

SBI fixed deposits are ideal for:

Retired individuals seeking steady income
Conservative investors prioritising capital protection
First-time investors building a low-risk portfolio
Anyone planning short- to medium-term financial goals