SBI 1-Year Fixed Deposit: Latest Interest Rates and Benefits Explained

August 6, 2026 Kiran

A Fixed Deposit (FD) remains one of the safest investment options for individuals looking for guaranteed returns. The State Bank of India (SBI) offers competitive FD interest rates across various tenures, with additional benefits for senior citizens.

If you’re considering investing in a 12-month (1-year) SBI Fixed Deposit, here’s everything you need to know about the latest interest rates, eligibility, features, and benefits.

SBI 1-Year FD Interest Rate

As per the latest SBI retail domestic term deposit rates:

Customer Category	Interest Rate (per annum)
General Citizens	6.55%
Senior Citizens	7.05%

These rates are applicable to eligible retail domestic fixed deposits and may be revised by the bank from time to time.

Extra Benefit for Senior Citizens

Senior citizens (aged 60 years and above) receive an additional 0.50% interest over the regular card rate for a 1-year SBI Fixed Deposit.

This higher interest rate helps retirees and pensioners earn better returns while keeping their investments secure.

Key Features of SBI Fixed Deposits

SBI FDs come with several advantages:

Guaranteed returns
Flexible tenure from 7 days to 10 years
Minimum investment starts from ₹1,000
Premature withdrawal facility (subject to applicable rules)
Loan or overdraft facility against FD
Auto-renewal option available
Online FD booking through Internet Banking and YONO

Who Should Invest in an SBI FD?

A 1-year SBI FD may be suitable for:

Salaried professionals
Retired individuals
Conservative investors
First-time investors
People saving for short-term financial goals

Since returns are fixed, investors are protected from market volatility.

Example of Returns

Suppose you invest ₹1,00,000 for one year.

General citizen (6.55%)
Approximate maturity amount: ₹1,06,550 (before taxes).
Senior citizen (7.05%)
Approximate maturity amount: ₹1,07,050 (before taxes).

Actual maturity values may vary depending on payout options, compounding, tax deductions, and applicable bank rules.

How to Open an SBI Fixed Deposit

Customers can open an FD through:

Any SBI branch
SBI Internet Banking
YONO SBI App

Required documents generally include:

PAN Card
Aadhaar or other valid identity proof
Address proof
Existing SBI account (for online booking)

Can You Withdraw Before Maturity?

Yes.

SBI allows premature withdrawal of most retail fixed deposits. However:

A penalty may apply.
The applicable interest rate may be lower than the contracted rate.
Certain special schemes may have additional conditions.

Is the Interest Taxable?

Yes.

Interest earned on an SBI FD is taxable according to the investor’s applicable income tax slab.

If the interest exceeds the prescribed threshold, the bank may deduct Tax Deducted at Source (TDS) unless valid exemption declarations are submitted where applicable.

Why Many Investors Choose SBI FDs

SBI remains one of India’s most trusted public sector banks because of:

Government-backed credibility
Nationwide branch network
Competitive interest rates
Easy online account management
Flexible deposit tenures
Additional benefits for senior citizens

These factors make SBI Fixed Deposits a preferred option for investors seeking stable and predictable returns.

Conclusion

An SBI 1-year Fixed Deposit currently offers 6.55% per annum for general customers and 7.05% per annum for senior citizens. With guaranteed returns, flexible investment options, and enhanced rates for senior citizens, SBI FDs continue to be a reliable investment choice for those looking to preserve capital while earning steady interest. Before investing, it’s advisable to check the latest rates on SBI’s official website, as interest rates are subject to revision.