State Bank of India Fixed Deposit
Updated on: Sep 21st, 2023
State Bank of India (SBI) Is the largest Indian bank, with approx ¼ market share and around 45 crore customers. It has been ranked 236th in the Fortune Global 500 list of the world's biggest corporations of 2019. The Fixed Deposit programme by SBI has been rated as FAAA/Stable by CRISIL. This indicates that the FD offering is stable and it will generate stable and timely returns.
The bank offers multiple Fixed Deposit(FD) options with different rates at different investment periods. The tenure ranges from 7 Days to 5 years and above for the general public and senior citizens. The bank also provides FD options for NRIs, NRE, FCNR etc. Let's discuss this in detail.
Types of SBI Bank Fixed Deposits
Below are the Types of FDs offered by SBI Bank:
- Regular Fixed Deposit
- SBI Multi Option Deposit
- SBI Tax Savings Scheme, 2006
- Sarvottam’ (Non-Callable) Term Deposit
- Annuity Deposit Scheme
- Special Term Deposit
- Motor Accident Claims Annuity (Term) Deposit Account (MACAD)
- Floating Rate Bulk Term Deposit (FRBTD)
Benefits of SBI Fixed Deposit Schemes
The following are the benefits of investing in SBI Fixed Deposit Schemes:
1. Flexible Period: The SBI's Fixed Deposits have time ranging from 7 days to 5 years and more. Hence, it is suitable for all kinds of customers.
2. Auto Renewal Facility: SBI provides an option for the auto-renewal of Fixed Deposits. It means at the time of the maturity of the deposits, they will automatically get renewed.
3. Premature Withdrawal: SBI provides options for premature withdrawal of the FD as per the customers' needs.
4. Loan Facility: Some of the Fixed Deposits also allow loans regarding the deposits.
5. Additional Interest for Seniors: SBI offers an additional rate of interest on Fixed Deposits for senior citizens, super senior citizens as well as staff.
6. Liberal Pay-out: SBI provides options for monthly or quarterly interest pay-outs on FD. This is beneficial for people who wish for regular income.
7. Tax Benefits: The SBI Tax Saving Scheme offers exemptions under Section 80, thus helping to save taxes.
Features of SBI Regular Fixed Deposit
- This is a standard FD type, and it can be started with a minimum investment of ₹1000 for a period ranging from 7 Days to 10 years.
- There is no cap on the maximum investment amount.
- Investors can also avail of loans against their FDs.
- Interest on a Term Deposit is payable to the depositor quarterly from the date of issue or at maturity along with the principal.
Features of SBI Multi Option Deposit
- SBI Multi Option Deposit Scheme (MODS) are Term Deposits linked to the Savings or Current Account (individual).
- Unlike normal Term Deposits, which are fully liquidated anytime you need funds, you can withdraw from a MODS account in multiples of 1000 as per your fund need.
- The balance amount in your MODS account will continue to earn the Term Deposit rates applicable at the time of the initial deposit.
- The tenor of deposits is 1 to 5 years.
Features of SBI Tax Savings Scheme, 2006
- Unlike standard FDs, investors can not withdraw their deposits before 5 years.
- Investors can avail of income tax deductions under section 80C up to 1.5 lakhs in a year.
- Loans against this scheme can only be availed after the completion of 5 years of the lock-in period.
- The maximum tenure of investment is 10 years.
Features of SBI Sarvottam’ (Non-Callable) Term Deposit
- In this scheme, Senior Citizens/ Staff/ Staff Senior Citizens are eligible for additional Interest Rates over the applicable non-callable deposit Rate for the public.
- NRI Senior Citizens and NRI Staff are not eligible to invest in this FD scheme.
- The tenure of the fixed deposit is 1 year & 2 years only.
- Demand Loan against deposit is allowed with applicable margin.
Features of SBI Annuity Deposit Scheme
- This scheme enables the customer to deposit a one-time lump sum amount and receive repayment of the same in monthly annuity instalments comprising part of the principal amount plus interest.
- The investment period is available for 36/60/84 or 120 months and the deposit can be started from ₹1000, there is no upper cap for investment.
- Loan of up to 75% of the balance amount of the annuity may be granted in special cases.
- Only resident individuals are eligible to invest in this scheme.
Features of SBI Special Term Deposit Scheme
- This product is a variant of Term Deposits but instead of Interest being paid out at a regular frequency during the period of the deposit; here it is paid out only at the time of maturity.
- Regular interest is added to the principal and compound interest is calculated and paid thereon.
- The minimum period of deposit is 6 Months and the maximum period of deposit is 10 Years.
- Investment can be started with ₹1000 and there is no upper cap for investment.
- Interest on the deposit is compounded quarterly and paid to the depositor at the end of the term.
Features of SBI Motor Accident Claims Annuity (Term) Deposit Account (MACAD)
- To credit the compensation amount awarded by a Tribunal/Court to victims/claimants of a motor accident and repayment of the same in monthly annuity instalments comprising part of the principal amount plus interest.
- Tenure of the deposit starts from 36 to 216 months as per directions of the Tribunal/Court.
- No loan or advance is allowed against this type of deposit.
- Investment can be started with ₹1000 and there is no upper cap for investment.
Features of SBI Floating Rate Bulk Term Deposit (FRBTD)
- Floating Rate Bulk Term Deposit offers products with an interest rate linked to an external benchmark (Repo Rate).
- The interest rate shall change with the change in Repo Rate and/or spread during the currency of the deposit.
- The minimum tenure of investment is 91 days and the maximum is 3 years. However, the minimum period for NRE Rupee Term Deposit is 12 months.
- The minimum investment required for this scheme is ₹2 Crores and in multiples of ₹1,00,000/- (Rs. One lac) thereafter, there is no maximum upper cap for investment.
- A loan/Overdraft facility is available for up to 90% of the FRBTD amount.
- The Interest rate on such loans will be 1.50 % p.a. above the applicable floating interest rate on deposit.
To invest in SBI Fixed Deposits, the following are eligible:
- Resident individual
- Hindu undivided family or HUF
- Parents or guardians of minors can invest on behalf of minors.
- Trusts, public and private limited organizations
- Sole proprietorship
- NRIs are eligible to invest through NRE and NRO accounts only
- Identity proof includes- a Pan card, Voter ID, Aadhaar card, Ration card, Driving license, and Passport.
- Address proof which includes- Telephone bill, Electricity bill, Passport, Bank statement etc.
- Two passport-size photographs.
How to Open an SBI Fixed Deposit Account
Open an SBI Fixed Deposit Account Online
Step 1: Login to your SBI mobile application.
Step 2: Select 'Term Deposit' and proceed.
Step 3: Fill in the required details such as personal details, identity and address proof, nominee details etc.
Step 4: Enter the deposit amount and select the tenure of FD.
Step 5: Enter the One-Time Password (OTP) to proceed further.
Step 6: The FD account will be opened once it is authorised.
Step 7: Download the acknowledgement slip for future reference.
Open an SBI Fixed Deposit Account Offline
Step 1: Visit the nearest SBI branch.
Step 2: Take the FD application form.
Step 3: Fill in the required details and submit the necessary documents.
Step 4: Submit the form to the branch.
Step 5: The bank will provide an FD receipt.
How to Close SBI FD?
To close the State Bank of India FD, please follow the steps below:
- Visit the Bank Branch.
- Fill out the premature FD closure form.
- Attach your KYC documents.
- Submit your FD receipt or certificate along with the documents.
SBI Fixed Deposit Scheme Premature Withdrawal Terms and Conditions
- Fixed Deposits with SBI can mature before their due date. But the tax-saving FD is not accepted for premature withdrawals.
- Deposits below ₹5 lakhs, which are kept for a tenure of 181 days, are not prone to any penalty in some schemes.
- Deposits greater than ₹5 lakhs, if withdrawn before 181 days, shall be prone to a penalty of up to 1%.
Can an account holder close their SBI FD at any time?
Yes, an investor can close his/her FD with SBI anytime as per their wishes. But in the case of SBI tax saving FD, premature closure is not allowed.
What is the minimum and maximum period for the SBI FD?
The minimum period for SBI FD is 7 days, and the maximum period is 10 years.
Can an investor deposit an additional amount in the current FD with SBI?
No, any additional amount cannot be added in between once an FD has been started with a fixed amount.
An investor needs identity proof along with address proof and two passport-sized photographs to open an FD account with SBI.
What are the required documents to open an FD account with SBI?
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