What is SBI’s “Special FD” Plan?

The special FD plan you likely heard about refers to Amrit Vrishti FD — a fixed deposit scheme from SBI. It’s not a lifetime or indefinite plan, but a fixed-tenure deposit with a higher interest rate than many standard FDs. (cleartax)

• Tenure: 444 days (about 1 year and 2½ months) per the scheme. (cleartax)

• Interest rate for regular customers (as of the latest update): ~7.05% per annum. (Times Bull)

• For senior citizens or super-seniors, SBI offers a slightly higher rate under similar special/senior-benefit schemes. (The Economic Times)

This makes the “special FD” appealing for people wanting a safe, bank-backed investment with a higher-than-average return — as long as they’re fine locking money for about 444 days.

Can ₹2 Lakh Grow to ₹3 Lakh 77 Thousand with This FD?

Let’s break down the math — and the reality check.

• If you put ₹2,00,000 into this FD at 7.05% per annum, for 444 days, you get interest on the principal for roughly 1.216 years (because 444 days ÷ 365 ≈ 1.216).

• Rough calculation:

  • Simple interest: 200,000 × 7.05% × 1.216 ≈ ₹17,140

  • Maturity amount ≈ ₹217,140

That’s far from ₹3,77,000.

Even if you kept the FD for a longer time, say 2–3 years, or reinvested the interest, you’d need much higher interest rates (or compounding) to reach nearly ₹3.8 lakh — which the scheme doesn’t deliver.

Therefore, the idea that ₹2 lakh will turn into ₹3 lakh 77 thousand under the standard “special FD” scheme looks—at least with publicly available interest rates—highly unrealistic.

Why Might People Claim Such High Returns?

If you’ve seen claims like “₹2 L becomes ₹3.77 L”, it might be due to one of these:

• Mis-calculation or misunderstanding (thinking in terms of long-term compounding at unrealistic rates).

• Mixing up with some hypothetical / special promotion, or using incorrect interest rates.

• Delay or addition of multiple deposits/rollovers, with compounding — but even then, to reach ~89% returns (i.e. from 2 L → 3.77 L) in a few years with an FD from a bank is extremely unlikely under current rate regimes.

Banks like SBI offer relatively modest interest rates (around 6–7% per annum), which deliver safe — but not explosive — growth.

Benefits & Realistic Expectations with SBI Special FD

Why many people still like this “special FD” option:

• Safety & reliability — Your money is with a major, regulated bank. No market risk.

• Better returns than regular savings accounts — With ~7% return, you beat typical savings-account interest comfortably.

• Fixed & predictable — You know what you get at the end of the term (unless you withdraw early, which may have penalties).

What you should expect (realistically): modest, safe growth — not doubling or near-doubling your money.

What to Do Instead (If You Want Higher Growth — But Understand the Risk)

If you saw the “₹3.77 lakh” claim and you hoped for that kind of return:

• Treat FDs as a safe, conservative part of your portfolio.

• Explore other investment options (stocks, mutual funds, etc.) if you’re looking for higher growth — but be ready for higher risk.

• Think of FDs for short-term goals or secure savings, not aggressive wealth doubling.

Conclusion: Special FD — Safe, but Not Magical

Yes — SBI’s “special FD” (Amrit Vrishti) gives you a better rate than many standard options. It’s a sensible, low-risk choice for part of your savings. But the promise that ₹2 lakh will turn into ₹3.77 lakh under this scheme doesn’t hold up under realistic calculations.