SBI lowers FD rates to 6.9%; Debt mutual funds steal the spotlight with over 118 outperformers
State Bank of India
(
SBI
), India's largest public sector bank, has revised its
Fixed Deposit
(FD) interest rates, to 6.9% from 7%, effective April 15, 2025, as per its official website. The bank has reduced rates by 10 basis points on select medium-term deposits, particularly those with tenures ranging from 1 to 3 years.
FDs with maturities between 2 years and less than 3 years will now earn 6.90% interest, down from the previous 7.00% which is still lower than what is offered by around 118
debt mutual funds
during the same period.
ETMutualFunds analysed the performance of debt
mutual funds
in three years and found that these funds offered annualised returns ranging between 7% to 14.3%, higher than 6.9% being offered by SBI FD.
Play Video
Pause
Skip Backward
Skip Forward
Unmute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
0:00
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions settings
, opens captions settings dialog
captions off
, selected
Audio Track
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View
Details
»
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
35 & Earning? Protect Your Family with ₹1 Cr Life Cover
ICICI Pru Life Insurance Plan
Get Quote
Undo
Also Read |
MF Tracker: This largest midcap mutual fund outshines across horizons. Will the streak continue?
SBI FD interest rates
For a tenure of one year to less than 2 years, the
interest rate
has been revised to 7.20% from 7.30%. In two years to less than 3 years, the revised interest rate offered is 7.40% against 7.50% earlier.
Live Events
FD-beating debt mutual funds
Four debt mutual funds gave double-digit returns in the last three years. Aditya Birla SL Medium Term Plan gave the highest return of 14.3% in the last three years, followed by two credit risk funds.
DSP Credit Risk Fund and Aditya Birla SL Credit Risk Fund gave 13.9% and 10.6% respectively in the said time period. UTI Medium to Long Duration Fund gave a return of 10.1% in the same time period.
Also Read |
78% smallcap mutual funds outperform their benchmarks in one year. Have you invested in any for your portfolio?
SBI Magnum Gilt Fund gave a return of 8.6% in the mentioned period. Two constant maturity funds - ICICI Pru Constant Maturity Gilt Fund and SBI Magnum Constant Maturity Fund - gave 8.5% each in the last three years.
Two government security based funds from DSP Mutual Fund - DSP Gilt Fund and DSP 10Y G-Sec Fund - gave 8.3% each in the said time period.
SBI Magnum Income Fund and SBI Credit Risk Fund delivered a return of 7.6% each in the last three years. Nippon India Income Fund and Nippon India Credit Risk Fund gave 7.5% return each in the similar time frame.
Baroda BNP Paribas Ultra Short Duration Fund and Sundaram Money Market Fund gave 7% return each in the said period.
Underperformers
Around 170 debt mutual funds have failed to beat the fixed deposit interest rate offered by SBI. These funds gave returns ranging between 5.4% to 6.9% in the said time period.
Sundaram Short Duration Fund gave 6.9% and Franklin India ST Income Plan gave the lowest return of 5.4% in the mentioned time period.
FD vs debt funds
Now coming to the comparison between fixed deposits and debt mutual funds, fixed deposits are considered low risk investments as they offer a guaranteed return for the predetermined period whereas debt mutual funds have a slightly higher risk associated with them because of the interest rate movement.
Also Read |
Looking for mutual fund with highest returns? Radhika Gupta warns of broken metric
The second point of difference comes on the taxation part. The investment in tax-saving fixed deposits is exempted under Section 80 C of the Income Tax Act whereas for the debt mutual funds there is no such exemption. But both fixed deposits and debt mutual funds are classified under the same asset class.
We considered all debt categories such as gilt fund, long duration, medium to long duration, gilt fund - constant maturity 10 year, credit risk funds,
liquid funds
,
money market funds
, overnight funds, corporate bond fund, dynamic bond fund, floating rate bond, banking and PSU funds, medium duration, low duration, short duration funds. We excluded debt based target maturity funds. We considered regular and growth options.
We calculated returns for three years. We calculated CAGR returns as in debt mutual funds, returns up to one year are annualised and above one year are CAGR.
Note, one should not make investment or redemption decisions based on the above exercise. One should always consider risk profile, investment horizon and goal before making investment decisions.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on
ETMFqueries@timesinternet.in
alongwith your age, risk profile, and Twitter handle.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
26 minutes ago
- Time of India
7 unconventional ways to build a career when you don't know what you want yet
In an era where professional lives are increasingly non-linear and success no longer follows a single template, the traditional question—"What do you want to be?"—can feel more limiting than helpful. For students and early-career professionals who don't have a fixed goal in mind, the pressure to 'figure it all out' can be stifling. But not knowing your destination doesn't mean you have to stand still. In fact, some of the most rewarding careers begin not with certainty, but with experimentation. Here are seven unconventional yet effective ways to gain direction, credibility, and confidence—while the bigger picture continues to evolve. Start a Public Project Rather than waiting to secure the ideal job or internship, consider launching a public project of your own—something tangible and visible that reflects your interests and initiative. This could take the form of a blog on productivity, a podcast featuring conversations with people you admire, a YouTube series delving into your city's startup culture, or even a carefully curated Instagram page focused on a niche topic. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Such projects help you develop a range of valuable, transferable skills—like writing, editing, outreach, and branding. They also create a digital footprint that potential employers or mentors can easily access, offering a clear demonstration of your abilities and interests. Most importantly, public projects don't require you to have your career path fully figured out. What they do require is the willingness to act, explore, and build something authentic on your own terms. Take a 'Portfolio Gap' Instead of a Traditional Gap Year Many take a gap year to "figure things out," but it often becomes a period of drift unless it's structured. Instead, treat it like a portfolio year—a time to work on short-term freelance gigs, open-source contributions, creative writing, or research. Document these projects as you go. Over time, this collection becomes a living, breathing testament to your curiosity and growth. It demonstrates productivity and adaptability—qualities employers are increasingly prioritizing over fixed qualifications. Shadow, Don't Just Intern Internships are valuable, but they're not always easy to land—especially when you're uncertain of your path. An often overlooked alternative is job shadowing. Spend a few days or weeks observing a professional in a field you're curious about. This requires less bureaucracy, less time, and often reveals more than a structured internship. Through shadowing, you gain direct exposure to the day-to-day reality of a profession—something that job descriptions and brochures rarely capture accurately. Observing real work environments helps you understand not just the core responsibilities, but also the soft skills required, the team dynamics, and the hidden pressures professionals face in that role. Try Reverse Mentorship Traditional mentorship assumes that the younger professional learns from the older one. But in today's digital-first world, reverse mentorship—where you share your skills (social media, no-code tools, content creation) with an experienced professional in exchange for industry insights—can be equally valuable. This kind of exchange: Builds genuine, two-way relationships Gives you real-world context for your skills Opens doors to professional networks you wouldn't access through job boards It's an organic and low-pressure way to explore industries while adding value in return. Solve a Real-World Problem One of the best ways to figure out your interests is by applying your skills to solve something real. Look around your community, college, or online circles. Is there a local NGO that needs help organizing data? A family business struggling with its website? A student group that could use better branding? These experiences test your ability to manage ambiguity and help build confidence. Even if the work is unpaid or short-term, the learning—and future recommendation—can be invaluable. Join a Startup Working in a startup environment forces you to wear multiple hats. You might find yourself writing a copy in the morning and solving customer problems in the afternoon. For someone still exploring their career fit, this kind of exposure can fast-track self-awareness. Startups tend to value: Curiosity over credentials Execution over expertise Energy over experience Alternatively, if you spot a problem worth solving, gather a small team and start something—however small. A side hustle can be the clearest mirror to your working style and interests. Design Your Own Learning Path You don't need a university syllabus to learn. Pick a topic you're drawn to—UX design, behavioral economics, climate finance—and build a self-study roadmap using free or low-cost resources (MOOCs, YouTube lectures, curated reading lists). Set weekly goals. Track your progress. Share insights publicly through blogs, LinkedIn posts, or videos. This approach helps you build credibility in a niche before formally entering it and show initiative to future employers. Over time, you'll gain both a skill set and a voice—two things employers care deeply about. In a world shaped by rapid change and evolving industries, not knowing what you want yet isn't a weakness—it's a transitional state with its own possibilities. Careers today are not ladders but lattices; what matters most is momentum, visibility, and growth. By experimenting, creating, and connecting, you can build a meaningful foundation—one that allows your career to take shape not through rigid planning, but through informed evolution. Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! Spaces are limited.
Time of India
35 minutes ago
- Time of India
Kiran Mazumdar-Shaw applauds Bengaluru professor who turned leaf into a straw: Know how it's now a global hit
Bengaluru-based billionaire Kiran Mazumdar-Shaw recently shared a video on social media that caught many people's attention. It featured a unique invention by an English professor who turned dry coconut leaves into eco-friendly straws . Her caption said it all: "Local ideas with global opportunities!" — kiranshaw (@kiranshaw) Who is this professor? The man behind the innovation is Prof Saji Varghese , an English professor at Christ University , Bengaluru . Though he holds a PhD in English, his work in sustainability has earned him praise both in India and abroad. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo How did the idea come about? It all began on October 3, 2017, when Prof Varghese was walking home after class and spotted a dry coconut leaf on the ground. He noticed that part of it had naturally curled into the shape of a straw. Curious, he took it to a lab and steamed it under high pressure. To his surprise, the heat brought out a shiny surface on the leaf, sparking the idea of making it a plastic alternative. He began experimenting with food-grade glue and different techniques. After months of trials, he developed a multi-layered straw in early 2018 that was strong, anti-fungal, and could stay firm in water for more than six hours. Even better, the straws had a shelf life of over 12 months. Live Events How did it help others? Prof Varghese didn't stop with just creating the straws. He set up small production units in villages across Madurai , Tuticorin , and Kasargod, giving jobs to rural women. The straws were launched under the brand name SunBird, and soon, local food businesses started placing orders. What happened next? The innovation gained popularity quickly. Within a year, Prof Varghese's straws were being exported to 25 countries, including the US, Australia, and several European nations. His work has not gone unnoticed. He has won several awards, including: Swadeshi Startup Award 2018 from IIT Delhi Swiss Re Shine Entrepreneur Award Climate Launchpad Award 2018 for social impact from Scotland Inputs from TOI
Time of India
35 minutes ago
- Time of India
Disruption of rare earth magnet supplies beyond 30 days can impact vehicle production in India: Report
A disruption in rare earth magnet supplies lasting beyond a month can impact production of passenger vehicles, including electric models, weighing on the domestic automobile industry 's growth momentum, a report on Tuesday said. Rare earth magnets , low in cost but critical in function, could emerge as a key supply-side risk for India's automotive sector if China's export restrictions and delays in shipment clearances persist, Crisil Ratings said in a statement. "The supply squeeze comes just as the auto sector is preparing for aggressive EV rollouts. Over a dozen new electric models are planned for launch, most built on PMSM platforms," Crisil Ratings Senior Director Anuj Sethi said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 무릎이 붓고 아프신 분들만 읽으세요. 큰딸민지 더 알아보기 Undo While most automakers currently have 4-6 weeks of inventory, prolonged delays could start affecting vehicle production , with EV models facing deferrals or rescheduling from July 2025, he added. A broader impact on two-wheelers and ICE PVs may follow if the supply bottlenecks persist for an extended period, Sethi said. Live Events "The shortage of rare earth magnets is forcing automakers to reassess supply-chain strategies. Despite contributing less than 5 per cent of a vehicle's cost, these magnets are indispensable for EV motors and electric steering systems," said Crisil Ratings Director Poonam Upadhyay. Automakers are actively engaging with alternative suppliers in countries such as Vietnam, Indonesia, Japan, Australia, and the US, while also optimising existing inventories, she noted. "With applications across EVs and ICE vehicles, a prolonged supply squeeze could disrupt production of PVs and 2Ws, making this low-cost component a potential high-impact bottleneck for the sector," she said. Rare earth magnets are integral to Permanent Magnet Synchronous Motors (PMSMs) used in EVs for their high torque, energy efficiency and compact size. Hybrids also depend on them for efficient propulsion. In internal combustion engine (ICE) vehicles, the use of rare earth magnets is largely limited to electric power steering and other motorised systems. In April this year, China, the world's dominant exporter of rare earth magnets, imposed export restrictions on seven rare earth elements and finished magnets, mandating export licences. The revised framework demands detailed end-use disclosures and client declarations, including confirmation that the products will not be used in defence or re-exported to the US. With the clearance process taking at least 45 days, this added scrutiny has significantly delayed approvals. And the growing backlog has further slowed clearances, tightening global supply chains. India, which sourced over 80 per cent of its 540 tonnes magnet imports from China last fiscal, has started to feel the impact. By end-May 2025, nearly 30 import requests from Indian companies were endorsed by the Indian government, but none have yet been approved by the Chinese authorities, and no shipments have arrived. During the pandemic, rare earth magnet supplies remained stable, unlike semiconductors, reinforcing reliance on just-in-time inventory without building strategic buffers. However, while semiconductors have a globally diversified supply base, over 90 per cent of rare earth magnet processing is concentrated in China, with limited short-term alternatives. Recognising the risk, the government and automakers are taking action on two fronts, Crisil said. In the short term, the focus is on building strategic inventories, tapping alternative suppliers and accelerating domestic assembly under Production Linked Incentive schemes. For the long term, reducing import dependency will hinge on fast-tracking rare earth exploration, building local production capacity and investing in recycling infrastructure, Crisil stated.
