SBI 5 Lakh Scheme 2025 Interest Rate, Benefits

Official SBI’s website or deposit-rate pages do not currently list a scheme exactly matching “SBI 5 Lakh Scheme 2025.” The official deposit rates and special fixed deposit schemes may cover certain limits and premiums, but this “₹5 Lakh Scheme” is not (yet) clearly documented in SBI’s standard “Retail Domestic Term Deposits” listings.

In recent media and financial blogs, a scheme titled “SBI ₹5 Lakh Savings / Deposit Scheme 2025” has been discussed. According to these reports:

• The scheme purportedly allows depositors to invest up to ₹5,00,000 (₹5 lakh) in a special instrument.
• It is claimed to offer interest rates up to 7.5% p.a., depending on the tenure chosen.
• Tenure options are suggested to be between 3 to 5 years.
• The scheme is described as available to existing SBI savings or salary account holders, with both online and offline application modes.

Thus, treat this as a “proposed / rumored / media-reported” scheme, not confirmed.

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SBI 5 Lakh Scheme 2025 Interest Rate

The interest rate is the most crucial factor when evaluating the SBI ₹5 Lakh Scheme 2025. According to several financial news sources and blog reports, the scheme is expected to offer returns of up to 7.5% per annum, depending on the deposit tenure and applicable customer category.

However, as of now, SBI has not officially confirmed or listed this scheme on its website. Therefore, these figures should be treated as indicative and subject to change until verified through an official notification.

Here’s an estimated breakdown based on current SBI deposit trends and reports:

If the ₹5 lakh scheme follows SBI’s traditional quarterly compounding model, the effective annual yield could be slightly higher than the nominal rate—roughly between 7.3% and 7.8% for the general public and up to 8.2% for senior citizens.

It’s also worth noting that SBI occasionally introduces special fixed deposit products (like Amrit Vrishti or Green Rupee FD) with limited-time higher interest rates. The “₹5 Lakh Scheme” may fall under a similar category, offering competitive returns for a capped deposit amount.

SBI’s Current Deposit & FD Schemes (2025)

To appreciate the scheme’s context and plausibility, let’s see what SBI currently offers in 2025:

• SBI’s domestic retail term deposit interest rates vary by tenure; for example, children of 1-5 years get ~ 6.30% for the general public and ~ 6.80% for senior citizens. ClearTax
• SBI also runs Special FD Schemes, such as Amrit Vrishti, which had a fixed tenure of 444 days and a premium interest rate over regular deposits. However, the Amrit Vrishti scheme was open for investment until 31 March 2025, and its rates were revised effective 15 June 2025. ClearTax
• SBI also offers “Green Rupee Term Deposit,” “SBI Patrons,” and various non-callable / special terms under the umbrella of special fixed deposit options. Policybazaar

This means that SBI is open to launching term-deposit offerings with special features, so a ₹5 lakh scheme is plausible in that strategic direction.

Key Features (Media-Reported) of the ₹5 Lakh Scheme

Based on what media and blog reports state, here are the claimed or expected features of the SBI ₹5 Lakh Scheme 2025:

If this scheme becomes official, it might be positioned as a high-yield, secured fixed deposit option, but specifically limited (by maximum amount) to ₹5 lakh to target retail / mass customers.

Pros and Potential Benefits

If SBI truly launches such a ₹5 lakh scheme with the described features, here are the likely advantages:

1. Higher Interest Potential
   With claimed interest rates up to 7.5% p.a., it can be more attractive than many standard fixed deposit rates available in 2025.
2. Limited Capital Exposure
   By capping the maximum at ₹5 lakh, it allows customers to try a higher-yield deposit without too much capital at risk.
3. Flexibility
   Being allowed premature withdrawal (with minimal penalty) adds liquidity when needed.
4. Ease of Access
   If made available via both branch and digital channels, it becomes accessible to many customers.
5. Confidence in Brand & Safety
   Deposits with SBI carry the trust of India’s largest public sector bank. Also, deposit insurance under the Deposit Insurance and Credit Guarantee Corporation (DICGC) covers deposits up to ₹5 lakh per depositor per bank.

Risks, Caveats & Things to Verify

Before jumping into it, one must be cautious. Here are important risks and points to check:

• Scheme may be non-existent or in draft stage: As of now, there’s no clear official listing on SBI’s site. The details are from media coverage.
• Interest rate might be variable or promotional: The “up to 7.5%” could apply only for certain tenures or shorter promotional periods.
• Penalty on early withdrawal: Though minimal penalty is reported, actual terms (how much interest you forfeit) must be confirmed.
• Taxation: Interest earned would be taxable under “Income from Other Sources.” TDS rules could apply.
• Deposit insurance ceiling: The DICGC covers deposits only up to ₹5 lakh per depositor per bank. If you have higher deposits, anything above ₹5 lakh is uninsured.
• Lock-in or restrictions: Even though premature withdrawal is mentioned, some special schemes have lock-in or restricted withdrawal windows.
• Renewal terms: On maturity, whether the same high rate continues or standard rates apply will matter.

Hypothetical Returns: ₹5 Lakh Deposit for 3 or 5 Years

To illustrate, let’s do rough calculations (assuming compounding annually for simplicity) based on the claimed 7.5% p.a. interest:

3-Year Scenario

• Principal: ₹5,00,000
• Rate: 7.5% p.a.
• Compound annually for 3 years

Maturity amount = ₹5,00,000 × (1 + 0.075)³ ≈ ₹5,00,000 × 1.2424 = ₹6,21,200

So interest earned ~ ₹1,21,200 over 3 years.

5-Year Scenario

• Principal: ₹5,00,000
• Rate: 7.5% p.a.
• Compound annually for 5 years

Maturity = ₹5,00,000 × (1 + 0.075)⁵ ≈ ₹5,00,000 × 1.4356 = ₹7,17,800

Interest earned ~ ₹2,17,800 over 5 years.

Of course, these are simplified estimates. Real compounding frequency (quarterly, monthly) and actual effective rates will vary.

How to Apply (If & When Launched)

Assuming SBI officially launches the scheme, here’s how you might apply:

Online / Digital Mode

1. Log in to SBI Internet Banking or the YONO / SBI mobile app.
2. Go to the “Deposits / Fixed Deposits / Special Schemes” section.
3. Select “₹5 Lakh Scheme 2025” or the relevant special deposit scheme.
4. Fill in the deposit amount (up to ₹5,00,000) and choose the tenure (3 or 5 years, or as offered).
5. Confirm KYC, nominee details, and accept terms.
6. Fund the deposit from your savings account.

You receive an e-receipt or digital certificate.

Offline / Branch Mode

1. Visit your nearest SBI branch.
2. Ask for the “SBI ₹5 Lakh Scheme 2025” form or special FD form.
3. Fill in your name, account number, tenure, deposit amount, nominee, etc.
4. Submit identity proofs, KYC documents (if not already on file).
5. Submit funds by cheque / transfer or cash (as permitted).
6. Get a deposit receipt or certificate for your records.

Who Should Consider It?

If this scheme becomes real, it may be suited for:

• Retail investors with surplus funds (but not extremely high capital) who want higher rates.
• Seniors / retirees looking for safer fixed income alternatives.
• Mid-income individuals seeking to diversify beyond standard FDs.
• People with medium-term goals (3–5 years) who prefer predictable returns.

However, those needing liquidity, or who suspect interest rates may rise further, might want to moderate their allocation.

Comparison: ₹5 Lakh Scheme vs Regular SBI FD

Disclaimer: The “SBI ₹5 Lakh Scheme 2025” is based on media reports and third-party sources. At the time of writing, it is not confirmed via official SBI documents. All interest rates, features, and figures are indicative and subject to change. Before making any deposit, verify scheme details with official SBI branches or SBI’s website. Investments carry risks, and the depositor is solely responsible for understanding terms and consequences.

Final Thoughts

• The idea of a ₹5 Lakh Scheme 2025 by SBI is intriguing and potentially beneficial, especially if it offers interest rates above standard FDs.
• But as of now, it remains unverified in official SBI listings.
• If you’re interested, keep a close eye on SBI announcements, official circulars, and SBI’s deposit rates page.
• Should you decide to deposit in such a scheme, do so only after confirming terms, rates, and penalties.