SBI FD in Wife Name – Planning for a secure financial future often involves smart investments—and putting money into a Fixed Deposit (FD) in your spouse’s name can offer dual benefits: stable returns and tax advantages. Many individuals are now exploring SBI’s FD schemes as a safe, interest-earning option for their spouses. If you’re considering depositing ₹2.22 lakh in your wife’s name under the SBI FD scheme, here’s a complete breakdown of how much you can earn in 2 years, the interest rates, and the process involved.
Why Choose SBI FD in Your Wife’s Name?
Opening an SBI FD in your wife’s name is a smart way to build financial security for her while earning steady returns. It can also help in tax planning, though interest income may be clubbed with the husband’s income if he provides the funds. This investment gives your spouse a sense of financial independence and helps with long-term wealth building. SBI offers safe, government-backed fixed deposits with flexible tenures and reliable interest rates. Having an FD in your wife’s name can also simplify nomination and succession planning for the future.
Opening a fixed deposit in your wife’s name can be a smart financial move due to:
- Better tax planning
- Financial independence for your spouse
- Guaranteed returns
- Zero risk investment
- Easy liquidity options
SBI is considered one of the most reliable banks in India with FD offerings that suit both short-term and long-term goals.
Current SBI FD Interest Rates (June 2025)
SBI is offering FD interest rates between 3.50% to 7.00% for regular customers and up to 7.50% for senior citizens as of June 2025. Special schemes like the 444-day “Amrit Vrishti” FD offer even higher returns. Senior citizens enjoy extra benefits with an additional 0.50% interest rate across tenures. These rates are applicable for deposits below ₹3 crore and may change anytime, so always check the latest updates before investing.
Below are the latest SBI Fixed Deposit interest rates for deposits below ₹2 crore as of June 2025:
| Tenure | General Public Rate | Senior Citizen Rate |
|---|---|---|
| 7 – 45 days | 3.50% | 4.00% |
| 46 – 179 days | 4.75% | 5.25% |
| 180 – 210 days | 5.75% | 6.25% |
| 211 days – < 1 year | 6.00% | 6.50% |
| 1 year – < 2 years | 6.80% | 7.30% |
| 2 years – < 3 years | 7.00% | 7.50% |
| 3 years – < 5 years | 6.50% | 7.00% |
| 5 years and above | 6.50% | 7.50% |
How Much Will ₹2.22 Lakh Earn in 2 Years?
Assuming you invest ₹2.22 lakh in your wife’s name for a tenure of 2 years at 7.00% interest rate (general category), here’s the estimated return:
| Principal Amount | Tenure | Interest Rate | Interest Earned | Maturity Amount |
|---|---|---|---|---|
| ₹2,22,000 | 2 years | 7.00% p.a. | ₹32,418 approx | ₹2,54,418 approx |
| ₹2,22,000 | 2 years | 7.50% p.a. | ₹35,032 approx | ₹2,57,032 approx |
These amounts are calculated assuming annual compounding. Final returns may vary slightly depending on compounding frequency and TDS.
Tax Implications of SBI FD in Wife’s Name
It’s important to understand the tax rules associated with an FD opened in the spouse’s name:
- If the money invested in the FD comes from the husband, the interest income is clubbed with the husband’s income under the Income Tax Act.
- If your wife has her own source of income, the interest will be taxed in her name only.
- You can explore Section 80C options to claim deductions, but FDs themselves are not tax-free.
Benefits of Investing in SBI FD for Your Spouse
- Safety: SBI is backed by the Government of India, making it one of the safest banks.
- Guaranteed Returns: Fixed rate of interest throughout the tenure.
- Auto-Renewal Option: Easily continue the FD without visiting the branch.
- Loan Facility: You can avail up to 90% loan against your FD.
- Flexible Tenure: Ranging from 7 days to 10 years.
- Nomination Facility: Can nominate your spouse or children.
How to Open an SBI FD in Wife’s Name?
Follow these steps to start an FD in your wife’s name:
- Visit SBI branch or login to YONO SBI app.
- Choose the FD option and select tenure.
- Enter deposit amount – ₹2.22 lakh or your desired figure.
- Choose interest payout option – monthly, quarterly, or at maturity.
- Submit KYC documents (PAN, Aadhaar).
- Complete the nomination process.
- Confirm and receive your FD receipt instantly.
You can also open an FD offline by visiting the nearest SBI branch.
Tips for Maximizing FD Returns
- Invest during periods of high FD interest rate announcements.
- Choose quarterly or cumulative interest options for better compounding.
- Use the FD laddering technique to manage liquidity and earn higher interest.
- Reinvest interest in another FD to increase total earnings.
- Senior citizens should avail the higher rate benefit.
Sample Comparison: Different FD Amounts in Wife’s Name for 2 Years
| Deposit Amount | Interest Rate | Maturity in 2 Years |
|---|---|---|
| ₹1,00,000 | 7.00% | ₹1,14,612 approx |
| ₹2,22,000 | 7.00% | ₹2,54,418 approx |
| ₹3,00,000 | 7.00% | ₹3,43,836 approx |
| ₹5,00,000 | 7.00% | ₹5,73,060 approx |
| ₹10,00,000 | 7.00% | ₹11,46,120 approx |
| ₹2,22,000 | 7.50% (senior) | ₹2,57,032 approx |
| ₹5,00,000 | 7.50% (senior) | ₹5,80,080 approx |
Things to Keep in Mind Before Investing
- Early withdrawal can attract penalties and reduce returns.
- TDS will be deducted if interest exceeds ₹40,000/year (₹50,000 for senior citizens).
- Submit Form 15G/15H to avoid TDS if eligible.
- Interest income is fully taxable.
- Check for revised rates periodically.
FAQs about SBI FD in Wife’s Name
Q1. Can I open an FD in my wife’s name even if she doesn’t have an income?
Yes, you can. But the interest earned will be clubbed with your income for tax purposes.
Q2. What is the minimum amount required to open an SBI FD?
The minimum amount is ₹1,000. There is no maximum limit.
Q3. Will my wife get a higher interest rate if she is a senior citizen?
Yes, SBI offers an additional 0.50% interest to senior citizens on FDs.
Q4. Can I break the FD before 2 years?
Yes, but premature withdrawal may lead to a penalty and reduced interest.
Q5. How can I avoid TDS on interest income?
By submitting Form 15G/15H at the beginning of the financial year, if eligible.
Q6. Is it possible to get a monthly income from SBI FD?
Yes, you can choose the monthly interest payout option while opening the FD.
Q7. Is nomination mandatory for FDs?
It is optional but highly recommended for easy transfer in case of the account holder’s death.
Q8. How safe is it to invest in SBI FD?
SBI is a government-backed bank and considered one of the safest investment options in India.