SBI 210 Days FD Scheme: High Returns in Short Term
Complete Guide to State Bank of India's Special Fixed Deposit with Attractive Interest Rates
Table of Contents
Overview of SBI 210 Days FD Scheme
The SBI 210 Days Fixed Deposit scheme is a special tenure fixed deposit offered by the State Bank of India, designed specifically for investors seeking high returns in a short duration of just 7 months. This scheme is particularly beneficial for individuals looking to park their surplus funds for a short period while earning significantly higher interest rates compared to regular savings accounts.
Why Choose SBI 210 Days FD?
This special FD scheme offers interest rates that are substantially higher than the standard FD rates for similar tenures. Introduced as a limited-period offer, this scheme helps SBI attract short-term deposits while providing customers with an excellent opportunity to maximize their returns in a secure investment vehicle.
With the current economic scenario where interest rates are rising, the SBI 210 Days FD scheme presents a timely opportunity for Indian investors to lock in attractive rates for their short-term financial goals. Whether you're saving for a vacation, planning a wedding, or building an emergency fund, this scheme offers the perfect combination of safety, liquidity, and returns.
Key Features & Benefits
Higher Interest Rates
Earn up to 7.1% interest for general public and 7.6% for senior citizens - significantly higher than regular savings accounts.
Short Tenure
210 days (7 months) tenure is perfect for meeting short-term financial goals without long-term commitment.
Flexible Interest Payout
Choose between monthly, quarterly, half-yearly, or cumulative interest payout options as per your needs.
Loan Facility
Avail loans up to 90% of your deposit amount in case of emergencies without breaking your FD.
Premature Withdrawal
Option for premature withdrawal with minimal penalty charges (0.5-1% depending on tenure).
Auto-Renewal
Auto-renewal facility ensures your funds continue to earn interest even if you forget to renew manually.
Interest Rates Comparison
SBI offers special interest rates for its 210 Days FD scheme that are higher than its regular FD rates. Here's a comparison of current rates:
| Tenure | General Public Rate | Senior Citizen Rate | Special Rate for 210 Days FD |
|---|---|---|---|
| 7-45 Days | 3.00% | 3.50% | N/A |
| 46-179 Days | 4.50% | 5.00% | N/A |
| 180-210 Days | 5.25% | 5.75% | 6.30% |
| 211 Days to <1 Year | 5.75% | 6.25% | N/A |
| 210 Days FD (Special) | 7.10% | 7.60% | 7.10% |
As evident from the table, the special 210 Days FD scheme offers a substantial premium over regular FDs of similar tenure. This represents an excellent opportunity for investors to maximize returns on their short-term investments.
Calculate Your FD Returns
Use our calculator to estimate your maturity amount for SBI 210 Days FD
Eligibility Criteria
The SBI 210 Days FD scheme is available to a wide range of investors with minimal eligibility requirements:
- Resident Individuals: Indian residents above 18 years of age
- Senior Citizens: Individuals aged 60 years and above (eligible for additional 0.50% interest)
- Minors: Accounts can be opened in the name of minors through guardians
- HUF: Hindu Undivided Families can open FD accounts
- Minimum Investment: ₹1,000 with no upper limit
- KYC Requirements: Valid ID proof, address proof, and PAN card
Real Investor Case Study: Mr. Sharma's Experience
Mr. Rajesh Sharma, a 45-year-old business owner from Mumbai, invested ₹5 lakhs in the SBI 210 Days FD scheme in January 2023. He chose the cumulative option where interest is compounded quarterly and paid at maturity.
Investment Details:
- Principal Amount: ₹5,00,000
- Tenure: 210 Days
- Interest Rate: 7.1% p.a.
- Interest Earned: ₹20,630
- Maturity Amount: ₹5,20,630
Mr. Sharma's Feedback: "I needed a safe place to park my business surplus for about 7 months until tax payment time. The SBI 210 Days FD gave me better returns than any other short-term option. The process was smooth at my local SBI branch, and I received the maturity amount promptly without any hassle. I'm planning to reinvest the amount in the same scheme."
SBI FD vs Other Investment Options
How does the SBI 210 Days FD compare to other short-term investment avenues available to Indian investors?
| Investment Option | Expected Returns | Safety | Liquidity | Tax Efficiency |
|---|---|---|---|---|
| SBI 210 Days FD | 7.1-7.6% | Highest (DICGC insured) | Medium (premature withdrawal with penalty) | Low (interest taxable) |
| Savings Account | 2.5-4.0% | Highest | Highest | Low (interest taxable) |
| Liquid Mutual Funds | 5.5-6.5% | Medium | High (next day redemption) | Medium (LTCG tax after 3 years) |
| Short-Term Debt Funds | 6.0-7.0% | Medium | Medium (exit load may apply) | Medium (LTCG tax after 3 years) |
| Post Office Time Deposit | 5.5-6.7% | Highest | Low (premature withdrawal restrictions) | Low (interest taxable) |
The comparison clearly shows that the SBI 210 Days FD offers the best combination of safety and returns for a 7-month investment horizon. While mutual funds might offer slightly better post-tax returns for investors in higher tax brackets, the SBI FD provides guaranteed returns without any market risk.
How to Invest in SBI 210 Days FD
Investing in the SBI 210 Days FD scheme is a straightforward process with multiple options:
1. Through SBI Branch (Offline)
- Visit your nearest SBI branch with necessary KYC documents
- Fill out the FD application form (Form A4)
- Specify the tenure as 210 days and deposit amount
- Choose interest payout frequency
- Submit the form along with cheque/cash
- Receive your FD receipt immediately
2. Through Internet Banking (Online)
- Log in to your SBI Internet Banking account
- Navigate to "Deposit" section and select "Fixed Deposit"
- Choose "Open New Fixed Deposit"
- Select tenure as 210 days and enter deposit amount
- Choose funding account and interest payout option
- Confirm details and submit
3. Through YONO SBI Mobile App
- Open the YONO SBI app and log in
- Go to "Invest" section and select "Fixed Deposit"
- Choose "Create New FD"
- Select "210 Days" from special tenure options
- Enter amount and select interest payout frequency
- Confirm and create FD instantly
Taxation on FD Returns
Understanding the tax implications of your FD investment is crucial for accurate return calculations:
Tax Deducted at Source (TDS)
SBI deducts TDS at 10% on interest income if it exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). For those without PAN, TDS is deducted at 20%. You can submit Form 15G/15H to avoid TDS if your total income is below taxable limits.
Taxation Rules:
- Interest income is added to your total income and taxed according to your income slab
- For cumulative FDs, tax is payable annually on accrued interest even though it's paid at maturity
- You can claim deduction under Section 80C only for 5-year tax-saving FDs (not applicable for 210 Days FD)
Example: If you're in the 30% tax bracket and earn ₹20,000 interest from SBI 210 Days FD, you'll pay ₹6,000 as tax on this interest income (plus cess). This reduces your effective return from 7.1% to approximately 5.0%.
Limited Period Offer!
The special interest rates for SBI 210 Days FD are available for a limited time only. Visit your nearest SBI branch or invest online today to lock in these high returns!
Conclusion: Is This FD Right For You?
The SBI 210 Days FD scheme is an excellent investment choice for conservative investors looking for:
- Higher returns than savings accounts in a short 7-month period
- Absolute capital protection with DICGC insurance cover
- A safe haven for funds between major investments
- Meeting specific short-term financial goals
- Parking emergency funds while earning decent returns
However, investors in higher tax brackets should consider the post-tax returns carefully. For those seeking tax efficiency, debt mutual funds might offer better post-tax returns despite slightly higher risk.
Overall, the SBI 210 Days FD scheme stands out as one of the best short-term fixed income options available to Indian investors today, combining the trust of India's largest bank with attractive returns for a limited 210-day period.