SBI 365-Day FD: How Much Interest Will You Get on ₹1 Lakh?
If you are looking for a relatively low-risk option to park your money for one year, a State Bank of India (SBI) Fixed Deposit (FD) can be one of the options worth considering. For a deposit of ₹1 lakh, the interest earned over a 365-day period depends on the applicable SBI term-deposit rate and the type of FD selected.
As of the latest SBI deposit-rate information available in September 2026, the bank's domestic term-deposit rates for deposits below ₹3 crore are listed separately from bulk deposits. SBI states that interest on INR-denominated domestic deposits is calculated using 365 days in a year, including leap years.
For a standard one-year deposit, the applicable rate needs to be checked against SBI's current retail FD rate at the time of booking because deposit rates can change.
SBI 365-Day FD Interest Rate
A 365-day FD falls within SBI's 1 year to less than 2 years maturity category.
The latest SBI rate information available for this category shows a 6.25% annual interest rate for the applicable standard deposit category. The exact rate applicable to a particular FD should be confirmed on the day the deposit is opened because SBI can revise deposit rates.
SBI also offers higher rates to eligible senior citizens on applicable deposits. Therefore, the maturity amount for a senior citizen can be different from the amount earned by a regular depositor.
₹1 Lakh SBI FD for 365 Days: How Much Will You Get?
Suppose you invest ₹1,00,000 in an SBI FD for one year at an annual rate of 6.25%.
For a cumulative/reinvestment deposit, SBI says interest is compounded quarterly for completed quarters, with the principal and accumulated interest paid at maturity.
Using quarterly compounding as an illustration:
Investment: ₹1,00,000
Interest rate: 6.25% per year
Tenure: 365 days
Approximate maturity amount: ₹1,06,398
Approximate interest earned: ₹6,398
The actual maturity amount shown by SBI can differ slightly depending on the precise deposit date, applicable product terms and the bank's calculation methodology.
Simple Calculation
At a simple annual rate of 6.25%, ₹1 lakh would generate:
₹1,00,000 × 6.25% = ₹6,250
However, a cumulative FD benefits from compounding, so the maturity amount can be somewhat higher than the simple-interest calculation.
This distinction is important when comparing FD returns.
What If the Investor Is a Senior Citizen?
SBI provides additional interest for eligible senior citizens on applicable domestic term deposits. The rate for the same maturity period is higher than the standard public rate.
That means a senior citizen investing ₹1 lakh for 365 days could receive a higher maturity amount than a regular customer, subject to the applicable SBI rate and FD terms at the time of booking.
Investors should therefore check the rate shown by SBI before making the deposit rather than relying on an old FD-rate table.
SBI FD Interest Is Not Always Paid Monthly
One common misconception is that every FD automatically provides monthly interest.
SBI offers different term-deposit structures. In a cumulative/reinvestment FD, interest is accumulated and paid along with the principal at maturity. SBI's official explanation says that for STDR deposits of six months and above, interest is compounded and the principal plus interest is paid at maturity.
For investors who want regular income, a non-cumulative deposit may be more appropriate because interest can be paid at periodic intervals according to the product terms.
Therefore, the maturity calculation above is intended as an illustration for a cumulative deposit rather than a promise that every SBI FD will produce exactly the same amount.
What Happens If You Break the SBI FD Early?
An FD provides predictable returns when held until maturity, but investors should be aware of the consequences of premature withdrawal.
SBI's current deposit information states that for domestic retail term deposits of up to ₹5 lakh, the premature-withdrawal penalty is 0.50%. For deposits above ₹5 lakh and below ₹2 crore, the stated penalty is 1%. The applicable interest is also reduced according to SBI's premature-withdrawal rules.
For that reason, investors should avoid locking money into an FD that they may need urgently during the tenure.
Is SBI 365-Day FD Suitable for You?
A one-year FD can be useful for someone who has a specific financial goal within the next year and prioritises capital stability over potentially higher but uncertain market returns.
For example, someone saving money for a planned purchase after one year may prefer an FD because the interest rate is known at the time of booking and the investment does not depend on daily stock-market movements.
However, an FD is not completely free from considerations. Interest income can be taxable depending on the investor's circumstances, and inflation can reduce the purchasing power of the final amount.
The right choice therefore depends on the investor's tax position, liquidity needs, financial goal and alternative investment options.
SBI FD vs Keeping ₹1 Lakh in a Savings Account
Keeping ₹1 lakh in a savings account offers greater liquidity because the money can generally be accessed whenever required. An FD, on the other hand, locks the money for a specified period and typically offers a higher interest rate than a standard savings account.
SBI currently lists its savings-bank deposit rate at 2.50% per annum, while its term-deposit rates for longer maturities are higher.
Therefore, someone who knows that the money will not be required for a year may consider comparing an FD with simply leaving the amount in a savings account.
The difference in interest can become meaningful even on a ₹1 lakh deposit.
Important Things to Check Before Opening the FD
Before investing, customers should check:
The exact interest rate applicable on the booking date
Whether the FD is cumulative or non-cumulative
The exact maturity date
Premature-withdrawal rules
Tax implications
Nomination details
Auto-renewal instructions
Whether the deposit qualifies for any special SBI scheme or promotional rate
SBI's official interest-rate page is the appropriate source for confirming the latest rate before opening the deposit.
SBI 365-Day FD: Key Takeaway
For a ₹1 lakh SBI FD held for 365 days, the amount you receive at maturity depends on the interest rate applicable when the FD is booked and the type of deposit selected. At an illustrative 6.25% annual rate with quarterly compounding, ₹1 lakh would grow to roughly ₹1.064 lakh, or about ₹6,398 in interest.
The important point is that FD returns should be calculated using the current SBI rate and actual deposit terms, not an outdated rate circulating online. Investors should also consider taxation and premature-withdrawal conditions before locking in their money.
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This article is for informational and educational purposes only and should not be considered financial advice.