Chaitra Seetharam
Overview
The State Bank of India's 444-day Fixed Deposit, also known as the Amrit Vrishti scheme, is designed to provide competitive returns over a relatively short investment period. This scheme offers attractive interest rates with quarterly compounding for general senior, and super senior citizens, making it a suitable option for conservative investors seeking safe and guaranteed returns. However, investors should remember that Fixed Deposit interest is taxable as per their income tax slab, and TDS may apply if the prescribed threshold limit is crossed.
Who Can Open an SBI 444-day FD?
- Resident Individual
- Senior Citizen
- Super Senior Citizen
- Eligible NRI (NRE/NRO deposits)
- Existing FD holder (renewal)
Scheme Overview
- Minimum Deposit Limit: ₹1,000
- Maximum Deposit Limit: ₹3 Crore
- Tenure: Exactly 444 days
- Interest Payouts: Available in monthly, quarterly, or half-yearly. Interest, net of TDS - credited to Customer’s Account.
Interest Rates
| Depositor Category | Interest Rate (p.a.) |
| General Public | 6.45% |
| Senior Citizens (60+ years) | 6.95% |
| Super Senior Citizens (80+ years) | 7.05% |
Also Read - Post Office Monthly Income Scheme For Senior Citizens 2026: Latest Interest Rate With Tax Implications
Premature Withdrawal Rules
If you break the Fixed Deposit before maturity penalty may be applicable.
| If principal amount is up to ₹5 Lakh | Penalty is 0.50% |
| If principal amount is above ₹5 Lakh | Penalty is 1% |
Note: If you withdraw your deposit in less than 7 days, you will not receive any interest.
How Interest Calculation is Done After Premature Closure?
The payable interest is calculated lower of the below mentioned two rates:
- Interest rate applicable on the date the FD was opened for the actual period the money remained with the SBI minus the penalty, or
- Your original contracted FD rates minus penalty.
Taxation
- Interest earned on fixed deposits is subject to taxation as per your income tax slab.
- TDS is deducted @10% as per applicable rules or 20% if no PAN.
- Eligible investors can submit Form 121 to avoid TDS.
Here,
- TDS deduction does not mean the entire amount is your final tax liability. It is only a tax deduction mechanism - not the final tax payable.
- Suppose you have not submitted Form 121 and TDS has been deducted but your total income is below the taxable limit - you can claim the deducted TDS as a refund while filing your ITR.
- Always report full FD interest income in your ITR, even if TDS has been deducted.
- Check Form 26AS or AIS to ensure the deducted TDS has been correctly credited before filing your ITR.
- Ignoring FD interest while filing your ITR may result in a tax notice, even if TDS has already been deducted.
Explore More - Fixed Deposit Limits from 2026 along with New IT Rules
Is It Right for You?
The SBI Amrit Vrishti scheme is an excellent choice if you are looking for a safe, guaranteed return on your savings over a specific period of about 15 months and wish to earn slightly more than what a standard one-year deposit offers.
Amrit Vrishti vs SBI's Regular Tenor FDs
A quick comparison of SBI's standard retail FD rates versus the Amrit Vrishti scheme:
| Tenure | General | Senior Citizen |
| 1 Year to less than 2 Years | 6.25% p.a. | 6.75% p.a. |
| 2 Years to less than 3 Years | 6.40% p.a. | 6.90% p.a. |
| 444 Day Amrit Vrishti | 6.45% p.a. | 6.95% p.a. |
Clearly, the 444-day scheme offers the best returns among SBI's short term fixed deposits for retail customers.
Also Read - Public Provident Fund 2026: Five Costly Mistakes to Avoid in This Year
Important Terms to Note
- Premature Withdrawal: Permitted, though standard penalties apply - 0.50% for deposits up to ₹5 Lakh and 1.00% for deposits above ₹5 Lakh.
- Loan Against FD: You can avail a loan up to a certain percentage of the deposit value, as per SBI's guidelines.
- Taxation: FD interest is taxable as per your income slab, and TDS kicks in if annual interest exceeds ₹50,000 (₹1,00,000 for senior citizens).
How to Apply?
- Log in to the SBI online portal or open the YONO app.
- Go to the Deposit & Investment section and click on Fixed Deposit.
- Choose SBI Amrit Vrishti from the available schemes.
- Enter 444 days as the deposit tenure.
Also Read - PNB FD Interest Rates 2026 for 444 days
FAQs
1. Who is eligible to open an SBI 444-Day FD?
- Resident Individuals: Single or joint account holders.
- NRI Customers: Non-Resident External (NRE) and Non-Resident Ordinary (NRO) rupee term deposits (below ₹3 Crore).
- Minors: Eligible via legal or natural guardians.
- Senior & Super Senior Citizens: Aged 60+ and 80+ respectively, receiving additional interest benefits.
2. Can I claim Tax Savings under Section 80C on this scheme?
No. The 444-day FD is a standard retail term deposit, not a tax-saver FD. Section 80C tax benefits are strictly limited to fixed deposits with a minimum 5-year lock-in period.
3. How is Tax Deducted at Source (TDS) applied?
- Threshold: TDS applies if your total interest income across all SBI FDs exceeds ₹50,000 in a financial year (₹1,00,000 for senior citizens).
- Rate: TDS is deducted at 10% if your PAN is updated, or 20% if PAN is not linked.
- Avoidance: If your total annual taxable income is below the exemption slab, you can submit Form 121 at the start of the financial year to avoid TDS.
4. Which payout frequency offers the highest returns?
The Cumulative (Special Term Deposit) option yields the highest effective returns. Under this option, interest compounds quarterly and is paid out alongside the principal at maturity. Alternatively, you can select monthly, quarterly, or half-yearly payout options if you need regular cash flow.
5. What happens when the 444-day term matures?
If you selected Auto-Renewal at the time of booking, the principal (and interest, if cumulative) will auto-renew into a standard SBI term deposit for the nearest available tenure (since 444 days is a special promotional tenure). If auto-renewal is off, the final maturity amount auto-credits directly to your linked savings account.
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