SBI FD Interest Rate
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 10 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.
Interest Rates Chart 2023
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 45 days||3%||3.5%|
|46 days to 179 days||4.5%||5%|
|180 days to 210 days||5.25%||5.75%|
|211 days to less than 1 year||5.75%||6.25%|
|1 year to less than 2 years||6.8%||7.3%|
|2 years to less than 3 years||7%||7.5%|
|3 years to less than 5 years||6.5%||7%|
|5 years and up to 10 years||6.5%||7.5%|
|400 days (Special Scheme “ Amrit Kalash”)||7.1%||7.6%|
|Note: All interest rates are updated as of 1st Aug 2023|
returns on FD
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8.61% before they go down
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All you need to know about SBI FD Interest RateTypes of SBI DepositsPros of investing in SBI FDCons of investing in SBI Fixed DepositsEligibility Criteria to Open a Fixed Deposit with SBIDocuments Required to Open an SBI Fixed DepositHow To Open A FD Account with SBI?SBI Fixed Deposit - Premature Withdrawal and PenaltyTax on SBI Fixed Deposit
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Types of SBI Deposits
1. 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 upper limit. This is usually the preferred FD option chosen by investors. 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. But on request from the depositor, interest may be paid at monthly, half-yearly or yearly intervals in case of Term Deposits fixed for a term of twelve months and above.
2. 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 for 1 to 5 years.
3. SBI Tax Savings Scheme, 2006
Unlike standard FDs, investors can not withdraw their deposits before 5 years but 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.
4. 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 / NRI Staff not eligible). The tenure of the fixed deposit is 1 year & 2 years only. Demand Loan against deposit is allowed with applicable margin.
5. Annuity Deposit Scheme
To enable 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 Rs 1000, there is no upper cap for investment. Overdraft/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.
6. Special Term Deposit
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 Rs 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.
7. 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 Rs 1000 and there is no upper cap for investment.
8. 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 Rs. 2 Crores and in multiples of Rs.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.
Pros of investing in SBI FD
- Flexible period- The SBI's Fixed Deposits have time ranging from 7 days to 10 years and more. Hence, it is suitable for all kinds of customers.
- 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.
- Premature withdrawal- SBI provides options for premature withdrawal of the FD as per the customers' needs.
- Loan facility- Some of the Fixed Deposits also allow loans regarding the deposits.
- Additional interest for seniors- SBI offers an additional rate of interest on Fixed Deposits for senior citizens, super senior citizens as well as staff.
- Liberal pay-outs- SBI provides options for monthly or quarterly interest pay-outs on FD. This is beneficial for people who wish for regular income.
- Tax-benefits- SBI Tax Saving Scheme offers exemptions under Section 80C, thus helping to save taxes.
Cons of investing in SBI Fixed Deposits
- Not dynamic- Interest rates on SBI FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed-rate- Fixed deposits offer a fixed rate on the investment. Hence, no benefit can be availed for higher returns in cases of an increase in market interest rates.
Eligibility Criteria to Open a Fixed Deposit with SBI
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
Documents Required to Open an SBI Fixed Deposit
- 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 A FD Account with SBI?
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 amount of the deposit and select the tenure of FD.
Step 5- Enter the One-Time Password (OTP) to proceed further.
Step 6- Once it is authorised, the FD account will be opened.
Step 7- Download the acknowledgement slip for future reference.
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.
SBI Fixed Deposit - Premature Withdrawal and Penalty
- 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%.
Tax on SBI Fixed Deposit
- Fixed Deposits with SBI Tax Saving Scheme, is free from taxes for deposits up to ₹1,50,000 per annum under section 80C of the Income-tax Act, 1961.
- Interest income from the SBI’s FD applies to taxes by the tax slab.
- Interest income is also subject to TDS @10% if the income from SBI FD exceeds ₹40,000 p.a. (For senior citizens, the limit is ₹50,000 p.a. )
- In case of failure to provide PAN card details, TDS will be applicable @ 20%.
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.
What are the required documents to open an FD account with SBI?
An investor needs identity proof along with address proof and two passport-sized photographs to open an FD account with SBI.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.