SBI Fixed Deposit Interest Rates 2026: Fixed deposits remain a popular savings option for Indians who want predictable returns without directly exposing their money to stock market fluctuations. The State Bank of India (SBI), the country's largest public-sector bank, offers fixed deposit options across multiple tenures, making them suitable for short-term savings and longer-term financial planning.

If you are considering investing ₹1 lakh in an SBI fixed deposit, understanding the interest rate, investment period, and maturity amount is essential. Even a small difference in interest rates can affect the final amount, particularly when money remains invested for several years.

SBI offers regular fixed deposits with tenures ranging from seven days to ten years. Senior citizens generally receive additional interest over the rates offered to regular depositors, although the exact benefit depends on the tenure and applicable scheme.

Here is how a ₹1 lakh investment can grow over one, three, and five years, along with important information about compounding, taxation, and account opening.

SBI Fixed Deposit 2026: Interest Rates for Different Tenures

The supplied October 7, 2026 report lists the following interest rates for regular depositors and senior citizens.

These are the rates quoted in the source report, not independently verified live SBI rates for October 2026. The 7.50% five-year senior-citizen figure is described as including a special scheme benefit and should not automatically be assumed to apply to every new deposit.

Customers should confirm the currently applicable rates on SBI's official website before investing.

SBI Official FD Rates: What Does the Bank's Published Rate Card Show?

SBI's publicly available retail deposit rate card shows different figures from those quoted in the NewsPoint report.

The bank's official schedule, effective July 15, 2025, lists the following rates for retail deposits below ₹3 crore. A newer October 2026 rate revision was not established from the available official page.

*The published five-year senior-citizen rate includes the additional SBI We-care premium. Confirm the applicable scheme and rate before booking a deposit.

SBI ₹1 Lakh FD Calculator: Compare Returns for 1, 3 and 5 Years

FD Maturity Calculator

Illustrative

Investment amount (₹)

Deposit tenure

1 year

3 years

5 years

Customer category

General customer

Senior citizen

Estimated maturity amount

₹1,20,626

Interest earned

₹20,626

Annual interest rate

6.30%

Principal

Interest

Uses SBI's published July 2025 rate card and quarterly compounding, before tax. Actual proceeds depend on the rate at booking, deposit dates, and bank calculations.

How Does Quarterly Compounding Increase FD Returns?

SBI cumulative fixed deposits generally calculate interest using quarterly compounding.

Under this method, interest is periodically added to the deposit balance. Future interest is then calculated on the increased amount.

This allows the investment to grow faster than it would under simple interest at the same annual rate.

For example, if ₹1 lakh is invested for three years, the interest earned during earlier quarters contributes to the amount on which subsequent interest is calculated.

However, the maturity amount depends on the contracted interest rate, tenure, deposit type, and applicable interest-calculation conventions.

How Can You Open an SBI Fixed Deposit Online?

Existing SBI customers can generally open fixed deposits through the bank's YONO application or internet banking facility.

The process typically involves logging into the account, selecting the fixed deposit option, entering the investment amount, choosing the tenure, and confirming the transaction.

Customers can also visit an SBI branch to open a deposit after completing the required documentation.

Before confirming an FD, investors should review the interest rate, maturity date, payout option, premature withdrawal conditions, and nomination details.

Is SBI's Five-Year Tax-Saving FD Eligible for Section 80C Benefits?

SBI also offers a five-year tax-saving fixed deposit that may qualify for deductions under Section 80C of the Income-tax Act, subject to applicable conditions.

Eligible investments can count toward the overall Section 80C deduction limit of ₹1.5 lakh under the old tax regime.

However, the deduction is generally unavailable under the new tax regime, and the interest earned on a tax-saving FD remains taxable according to the investor's applicable income-tax provisions.

Tax-saving fixed deposits also carry a mandatory five-year lock-in period, with restrictions on premature withdrawal.

Important Points Before Investing ₹1 Lakh in SBI FD

Although fixed deposits provide predictable contractual returns, investors should understand that the interest rate is generally locked in when the deposit is opened.

If SBI revises its FD rates later, existing deposits usually continue at their contracted rates until maturity, unless they are renewed or otherwise modified under the applicable terms.

Premature withdrawals may attract a penalty, reducing the effective return.

Bank deposits are also covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance up to ₹5 lakh per depositor per bank, including principal and interest, subject to the applicable conditions.

Final Takeaway

Investing ₹1 lakh in an SBI fixed deposit can provide predictable returns over one, three, or five years. Senior citizens may receive higher interest rates, while cumulative deposits benefit from compounding.

However, the interest rates quoted in the October 7, 2026 NewsPoint report differ from the SBI rate card that could be verified. Investors should use the bank's latest official rates rather than relying on outdated calculations.

For the latest deposit rates, visit SBI's official retail fixed deposit rate page.

Source: SBI official retail domestic term deposit rate schedule, effective July 15, 2025, and the supplied NewsPoint report dated October 7, 2026. The calculator provides estimates and does not represent a guaranteed October 2026 quote.