State Bank of India (SBI), the country’s largest lender, has ceased its Amrit Kalash fixed deposit (FD) scheme, which was earlier available for a limited period. This scheme offered a notable interest rate of 7.10% per annum for regular investors and a higher rate of 7.60% for senior citizens on a 400-day deposit.
According to the SBI website, “The specific tenor scheme of “400 days” (Amrit Kalash) at rRate of Interest of 7.10 % w.e.f. 12- April- 2023. Senior Citizens are eligible for rate of interest of 7.60%. Since withdrawn w.e.f 01st April 2025.”
The discontinuation comes as financial institutions reassess their rate offerings ahead of the Reserve Bank of India’s (RBI) forthcoming Monetary Policy Committee (MPC) meeting. This development follows similar rate adjustments by other banks, including HDFC Bank, Yes Bank, and Punjab & Sind Bank, which have also reduced their FD interest rates in anticipation of regulatory announcements.
While the Amrit Kalash scheme has been withdrawn, SBI continues to offer its Amrit Vrishti special FD scheme. Launched on July 15, 2024, Amrit Vrishti is a 444-day term deposit that currently provides a competitive interest rate of 7.25% per annum for regular investors. The scheme offers senior citizens a higher rate of 7.75%, with super senior citizens, typically those aged 80 and above, receiving an even more favourable rate of 7.85% per annum. These rates have been effective from January 3, 2025, and reflect SBI’s strategy to retain senior citizen investors by offering attractive returns in a competitive market landscape.
SBI’s decision to adjust its FD offerings aligns with broader trends in the banking sector, where institutions are cautiously positioning themselves amid fluctuating economic indicators and RBI’s monetary policy directions. The adjustments in FD rates indicate a strategic response to manage interest rate risks while offering lucrative investment options to specific customer segments. Other banks continue to navigate these dynamics, with their offerings potentially influencing market share and attracting different investor demographics.
SBI’s competitors, such as HDFC Bank, with its substantial market share, and Yes Bank, known for its innovative customer solutions, have also made similar rate cuts. These financial institutions aim to balance competitive market positioning with maintaining steady profitability margins. The current shifts in interest rates are reflective of the banks’ efforts to align with RBI’s policy framework while ensuring attractive returns for depositors, particularly senior citizens who rely on FD schemes for stable income.
Other special FDs
IDBI Bank has extended its Utsav Callable FD scheme, allowing customers to invest in this unique deposit scheme. With tenure options ranging from 300 days to 700 days, depositors have the flexibility to choose a duration that suits their financial objectives.
The special deposit terms offered under the Utsav Callable FD scheme will be available until April 30, 2025, in accordance with IDBI Bank’s guidelines.
The current interest rates for different tenure periods within the Utsav Callable FD scheme are subject to variation based on the duration and depositor category.
Interest Rates for Fixed Deposits:
For a 300-day deposit:
General depositors: 7.05%
Senior citizens and super senior citizens: 7.55%
For a 375-day deposit:
General depositors: 7.25%
Senior citizens: 7.75%
Super senior citizens: 7.90%
For a 444-day deposit:
General depositors: 7.35%
Senior citizens: 7.85%
Super senior citizens: 8.00%
Premature Withdrawal Facility:
Depositors have the option to withdraw or close their deposits before the maturity date.