Fixed deposits remain one of the most popular investment options for Indian savers seeking guaranteed returns with minimal risk. Among the various fixed deposit schemes offered by banks, the State Bank of India’s 1111 Days FD Scheme has carved out a special place for investors looking for a medium-term investment option with attractive interest rates. This specialized scheme offers a unique tenure that bridges the gap between short-term and long-term deposits, making it an appealing choice for those who want better returns without locking their money away for too long.

Understanding the SBI 1111 Days FD Scheme

The SBI 1111 Days FD Scheme is a special fixed deposit offering from India’s largest public sector bank, designed to cater to investors seeking a tenure of approximately three years. The scheme gets its distinctive name from its exact tenure of 1111 days, which translates to roughly 3 years and 14 days. This specific duration has been strategically chosen to offer depositors a sweet spot between flexibility and higher returns, as longer tenures typically command better interest rates compared to shorter deposit periods.

State Bank of India, being the country’s premier banking institution, has structured this scheme to appeal to a wide range of customers including senior citizens, working professionals, and conservative investors who prefer the safety and predictability of fixed deposits over market-linked instruments. The scheme falls under SBI’s retail term deposit category and comes with all the standard features and benefits that SBI FDs are known for.

Latest Interest Rates for 2026

As of 2026, the interest rates on fixed deposits are influenced by the Reserve Bank of India’s monetary policy stance and prevailing economic conditions. For the SBI 1111 Days FD Scheme, the bank offers competitive rates that are typically higher than what’s available on shorter-duration deposits. While specific rates are subject to periodic revision based on RBI’s policy changes and market conditions, the 1111-day tenure generally falls into the higher interest bracket within SBI’s rate card.

For general public depositors, the interest rate on this scheme is aligned with SBI’s standard rates for deposits in the 3-year category. However, senior citizens receive preferential treatment with an additional interest rate benefit, typically ranging from 0.50% to 0.75% above the regular rates. This differential can make a significant impact on the final maturity amount, especially for larger deposits.

It’s important to note that SBI revises its fixed deposit rates periodically, and prospective investors should check the bank’s official website or visit their nearest branch to confirm the exact interest rate applicable at the time of booking their deposit. The rates can vary based on deposit amount slabs as well, with some banks offering slightly higher rates for larger deposits.

Eligibility and Investment Limits

The SBI 1111 Days FD Scheme is accessible to a broad spectrum of investors. Indian residents, including individuals, Hindu Undivided Families (HUFs), and organizations can open fixed deposits under this scheme. Non-Resident Indians (NRIs) can also invest through NRO (Non-Resident Ordinary) or NRE (Non-Resident External) fixed deposit accounts, subject to applicable regulations and potentially different interest rates.

The minimum deposit amount for opening an FD with SBI is typically Rs. 1,000, making it accessible even to small savers. There is no maximum limit on the deposit amount, allowing high-net-worth individuals to park substantial sums if they wish. The scheme can be opened in single or joint names, providing flexibility for family financial planning.

Senior citizens aged 60 years and above automatically qualify for the higher interest rate applicable to this category. Super senior citizens, those aged 80 years and above, may receive additional benefits in some cases, though this varies based on the bank’s policies at any given time.

Calculating Your Maturity Amount

Understanding how much you’ll earn at maturity is crucial for making informed investment decisions. The maturity amount depends on three factors: the principal amount invested, the applicable interest rate, and the frequency of interest compounding. SBI typically offers quarterly compounding for its fixed deposits, which means the interest earned is added to the principal every three months, and subsequent interest calculations are based on this enhanced amount.

For example, if you invest Rs. 5,00,000 in the SBI 1111 Days FD Scheme at an interest rate of 7% per annum with quarterly compounding, your maturity amount would be approximately Rs. 6,17,000, earning you around Rs. 1,17,000 in interest over the tenure. For senior citizens receiving an additional 0.50% interest (total 7.50% per annum), the same Rs. 5,00,000 deposit would grow to approximately Rs. 6,24,500, yielding about Rs. 1,24,500 in interest.

The formula for compound interest is: A = P(1 + r/n)^(nt), where A is the maturity amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years. However, most investors prefer using online FD calculators available on the SBI website or financial portals for quick and accurate calculations.

Tax Implications

Interest earned on fixed deposits is taxable as per the investor’s income tax slab. SBI deducts Tax Deducted at Source (TDS) at 10% if the total interest income from all FDs with the bank exceeds Rs. 40,000 in a financial year (Rs. 50,000 for senior citizens). If you don’t have a PAN card linked to your account, TDS is deducted at 20%.

Investors can submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) if their total income is below the taxable limit to avoid TDS deduction. However, the interest must still be reported in your income tax return and will be taxed according to your applicable slab rate.

Premature Withdrawal and Loan Facility

Life is unpredictable, and you might need access to your funds before the maturity date. SBI allows premature withdrawal of fixed deposits, though this comes with a penalty. Typically, the penalty ranges from 0.50% to 1% on the applicable interest rate for the period the deposit actually remained with the bank. This means you won’t get the 1111-day rate if you withdraw early; instead, you’ll receive the rate applicable for the actual tenure, minus the penalty.

Alternatively, if you need funds but don’t want to break your FD, SBI offers a loan facility against fixed deposits. You can avail a loan of up to 95% of the deposit value at an interest rate typically 1-2% above the FD rate, allowing you to access liquidity while your deposit continues to earn interest.

Conclusion

The SBI 1111 Days FD Scheme offers a compelling proposition for investors seeking stable returns with the backing of India’s most trusted banking institution. With its unique tenure, competitive interest rates, and special benefits for senior citizens, it represents an attractive middle ground for those looking to balance returns with liquidity needs. While the returns may not match equity investments during bull markets, the guaranteed nature and capital protection make it an essential component of a diversified portfolio, especially for risk-averse investors planning for medium-term financial goals.