Amrit Vrishti : SBI With New Fixed Deposit Scheme; Interest is 7.25%

Amrit Vrishti

State Bank of India (SBI), the largest public sector bank in India, has introduced a new fixed deposit scheme named Amrit Vrishti. Effective from July 15, 2024, this scheme offers attractive interest rates for both regular and senior citizens. The scheme is designed to provide a safe and lucrative investment option for individuals looking to grow their savings over a specified period. This essay delves into the details of the Amrit Vrishti scheme, its features, benefits, and exclusions, as well as a comparison with previous schemes like Amrit Kalash.

Introduction

Launch and Duration

SBI’s Amrit Vrishti fixed deposit scheme was launched on July 15, 2024, and will be available until March 31, 2025. This limited-time offer aims to attract both domestic and non-resident customers by offering competitive interest rates and flexible investment options.

Interest Rates

The scheme offers an interest rate of 7.25% per annum for a tenure of 444 days. Senior citizens benefit from an additional 0.50% interest, bringing their rate to 7.75% per annum. These rates are designed to provide substantial returns on investment while maintaining the safety and security associated with fixed deposits.

Exclusions from Amrit Vrishti

While the Amrit Vrishti scheme offers numerous benefits, it is important to note the exclusions. Certain deposit types are not eligible for this scheme, including:

• Recurring Deposits
• Tax Saving Deposits
• Annuity Deposits
• Multi Option Deposit (MOD)
• MACAD (Multi Option Deposit Account)

Also Read… Fixed Deposit : Earn up to 8.10% Interest | Mahindra Finance

These exclusions are designed to ensure that the Amrit Vrishti scheme remains focused on fixed deposits, providing clear and specific benefits to the investors.

Premature Withdrawal Penalty

Investors should be aware of the penalties associated with premature withdrawal of deposits under the Amrit Vrishti scheme. If a deposit is withdrawn before maturity, the following penalties apply:

• For retail term deposits up to ₹5 lakh, the penalty is 0.50%.
• For deposits above ₹5 lakh but less than ₹3 crore, the penalty is 1%.

These penalties are in place to discourage premature withdrawals and ensure that the scheme’s benefits are maximized by those who commit to the full tenure.

Comparison with Previous Schemes

Amrit Kalash Scheme

Before the introduction of Amrit Vrishti, SBI had launched another fixed deposit scheme called Amrit Kalash. The Amrit Kalash scheme offered an interest rate of 7.10% per annum for regular citizens and 7.60% per annum for senior citizens, with a tenure of 400 days. While both schemes are designed to provide attractive returns, Amrit Vrishti offers a slightly higher interest rate and a longer tenure, making it a more lucrative option for investors.

Benefits of the Amrit Vrishti Scheme

Attractive Interest Rates

The primary benefit of the Amrit Vrishti scheme is its competitive interest rates. With 7.25% per annum for regular citizens and 7.75% per annum for senior citizens, the scheme provides higher returns compared to many other fixed deposit options available in the market.

Safety and Security

As a fixed deposit scheme offered by SBI, Amrit Vrishti ensures the safety and security of the invested amount. SBI’s reputation and trustworthiness add an extra layer of assurance for investors, making it a preferred choice for risk-averse individuals.

Loan Facility

The provision of a loan facility against the fixed deposit is a significant advantage. It allows investors to meet their financial needs without disrupting their investment, ensuring that their savings continue to grow.

Ease of Access

With the availability of the scheme through SBI branches, internet banking, and the Yono mobile app, investors can conveniently open and manage their fixed deposits. This ease of access makes the scheme user-friendly and appealing to tech-savvy customers as well as those who prefer traditional banking methods.

Inclusivity

The inclusion of both Indian residents and non-residents broadens the scheme’s reach and appeal. NRIs looking for a reliable investment option in India can benefit from the attractive interest rates and security offered by the Amrit Vrishti scheme.

Potential Drawbacks and Considerations

Premature Withdrawal Penalties

While the penalties for premature withdrawal are standard practice, they can be a drawback for investors who might need to access their funds before the maturity period. It is important for investors to carefully consider their liquidity needs before committing to the scheme.

Limited Tenure

The fixed tenure of 444 days might not suit all investors. Those looking for shorter or more flexible investment periods might find this scheme restrictive. However, the specific tenure also means that the interest rates are tailored to maximize returns for this period.

Exclusions

The exclusion of certain types of deposits from the scheme might limit its appeal to some investors. For instance, individuals looking for tax-saving options or recurring deposits will need to explore other schemes offered by SBI or other financial institutions.

How to Invest in Amrit Vrishti

Through SBI Branches

Investors can visit their nearest SBI branch to open an Amrit Vrishti fixed deposit account. The bank staff will assist with the necessary documentation and account setup.

Internet Banking

For those who prefer online transactions, the Amrit Vrishti scheme can be accessed through SBI’s internet banking portal. Existing SBI customers can log in to their accounts and open a fixed deposit under this scheme with just a few clicks.

Yono Mobile App

The Yono mobile app, SBI’s digital banking platform, also provides access to the Amrit Vrishti scheme. Customers can use the app to open and manage their fixed deposits conveniently from their smartphones.

Conclusion

The SBI Amrit Vrishti fixed deposit scheme presents a compelling investment opportunity for both regular and senior citizens. With its attractive interest rates, loan facility, and ease of access, the scheme is designed to cater to a wide range of investors. However, potential investors should carefully consider the penalties for premature withdrawal and the specific exclusions of the scheme.