FD
Bonds
Blog
Home>Fixed Deposit>SBM Bank
bank_logo

SBM Bank Fixed Deposit

Updated 06 Dec 2023

SBM Bank India is a State Bank of Mauritius subsidiary. It started on December 1, 2018, as the first universal bank in India to receive a banking licence from the Reserve Bank of India (RBI) through the Wholly Owned Subsidiary (WOS) route.

 

This bank presently has a network of 11 branches spread across the country, namely Mumbai, New Delhi, Chandigarh, Pune, Bengaluru, Chennai, Hyderabad, Ahmedabad, and Kolkata, also including the rural centres like Ramachandrapuram, Palghar and Abitghar.

Types of SBM Bank Fixed Deposits

  • SBM Bank Fixed Deposit
  • SBM Tax Saver Fixed Deposit
  • SBM NRE Fixed Deposit
  • SBM NRO Fixed Deposit
  • SBM FCNR Deposit
  • SBM NRI Superia Deposit

Benefits of investing in SBM Bank Fixed Deposit

  • Period: The FD with SBM Bank ranges from 7 days to 10 years.
  • Convenient: Open hassle-free FD using online banking in a few minutes
  • DICGC insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs. 
  • Preference to senior citizens: Additional 0.5% p.a. for senior citizens.
  • Nomination facility: Depositors can nominate beneficiaries for their investments in SBM Bank FDs.

Features of SBM Bank Fixed Deposits

SBM Bank Fixed Deposit

  • Scheme tenure: 7 days to 10 years
  • You can opt for monthly or quarterly interest pay-outs, compounded or reinvestment of interest and principal amount upon maturity.
  • Senior citizens enjoy an additional interest rate of 0.5% p.a.
  • Premature closure is allowed if immediate funds are required to meet an emergency with an applicable penalty.
  • You can avail a loan anytime against the amount in your FD.
  • A nomination facility is also available.
  • Based on the tenor, the interest rate ranges from 4.25% to 7.75%.

SBM Tax Saver Fixed Deposit

If you invest in this FD, you are eligible for a tax deduction of up to ₹1.5 lakhs under Section 80C of the Income Tax Act of 1961.

  • Maximum investment: ₹1.5 lakhs per annum
  • Scheme tenure: 5 years
  • Lock-in period: 5 years
  • Flexible interest pay-out options on a monthly & quarterly basis are available.
  • Senior citizens enjoy an additional interest rate of 0.5% p.a.
  • Auto renewal facility is not permitted.
  • Premature withdrawal of the deposit (either principal or accrued interest) is not permitted before the completion of 5 years.
  • You cannot pledge the deposit to secure a loan or as security to any other asset.
  • Based on the tenor, the interest rate ranges from 4.25% to 7.75%.

SBM NRE Fixed Deposit

SBM Non-Resident External Deposit converts your investment into Indian rupees, which, on repatriation, can be converted into the currency of your choice.

  • Scheme Tenure: 1 year to 10 years
  • This scheme adopts quarterly compounding.
  • Auto-renewal of your principal and interest on maturity.
  • You can invest in this FD with any convertible currency for a flexible tenure.
  • Interest earned is tax-free in India.
  • Both the principal and interest are fully and freely repatriable.
  • A nomination facility is also available.
  • Based on the tenor, the interest rate ranges from 4.25% to 7.75%.

SBM NRO Fixed Deposit

SBM Non-Resident Ordinary Fixed Deposit Scheme allows NRIs to park their rental income, dividends and other earnings from India.

  • Minimum investment: ₹25,000
  • Maximum investment: No upper limit
  • This scheme adopts quarterly compounding.
  • Auto-renewal of your principal and interest on maturity.
  • Interest earned is tax-free in India.
  • Interest is fully repatriable after payment of taxes.
  • A nomination facility is also available.
  • Based on the tenor, the interest rate ranges from 4.25% to 7.75%.

SBM FCNR Deposit

SBM Foreign Currency Non-Resident deposit helps NRIs/PIOs to park their foreign earnings from around the world.

  • Scheme Tenure: 1 year to 5 years
  • Protection from currency exchange rate risk
  • You can invest in this FD with any convertible currency for a flexible tenure.
  • Tax-free interest and principal.
  • Both the principal and interest are fully and freely repatriable.
  • A nomination facility is also available.
  • Based on the tenor, the interest rate ranges from 4.25% to 7.75%.

SBM NRI Superia Deposit

  • Guaranteed higher returns than NRE/FCNR Deposits.
  • You can invest in this FD with any convertible currency for a flexible tenure.
  • Tax-free returns in India
  • Auto-renewal of your principal and interest on maturity.
  • Both the principal and interest are fully and freely repatriable.
  • A nomination facility is also available.
  • Based on the tenor, the interest rate ranges from 4.25% to 7.75%.

SBM Bank FD Eligibility Criteria

Anyone can apply for a fixed deposit scheme at SBM Bank if they fulfil the below basic criteria. However, the documents will differ for individuals and types of entities depending on the eligibility for the same:

  • Indian residents (including joint account)
  • Minor
  • Body of individuals 
  • Trusts
  • Hindu Undivided Families (HUF)
  • Private limited companies
  • Public companies
  • Specified associates
  • Sole proprietorship firms
  • Partnership firms
  • Limited liability partnership
  • Association of persons
  • Local authority
  • Clubs
  • Registered societies

Documents Required for SBM Bank FD Account

Here is a list of documents that you will require to open a fixed deposit account at SBM Bank:

  • A filled up FD application form. 
  • PAN card
  • You must submit SBM form 60 or 61 without your PAN card.
  • Passport-size photographs of depositor and nominee, if any
  • Proof of address: Aadhaar card, electricity bill, telephone bill, bank statement with a cheque and any other proof as per KYC norms.
  • Proof of identity: PAN card, Aadhaar card, Voter ID card, driving licence, passport or any other documents as per KYC norms.
  • If applicable, you also need to submit documents concerning HUFs, partnership firms, trusts, associations and companies as requested by the bank.

How to Open an FD with SBM Bank?

Mentioned below are the steps that you can follow if you wish to open a fixed deposit account at SBM Bank:

  1. Visit the nearest SBM Bank branch in which you want to open your FD account.
  2. Ask for the fixed deposit account opening form and fill it up. Provide all the necessary information like your name, address, contact details, PAN number, type of fixed deposit account you want, nominee’s details, etc.
  3. Enter the tenure of the fixed deposit account based on your financial requirements. You can choose between 7 days to 10 years.
  4. After completing the form, attach all the documents you need to submit along with it. This includes your KYC documents, proof of identity and address, and, most importantly, your PAN card and photographs.
  5. After you submit your documents and the account opening form, the bank will verify all your documents.
  6. Once your documents are verified successfully, the bank will provide an acknowledgement slip of your FD account opening.

You can also open an SBM fixed deposit account via the Internet and mobile banking.

SBM Bank Fixed Deposit Premature Withdrawal

If you wish to withdraw your fixed deposit prematurely, it will be subject to penalty provisions at the rate decided by SBM Bank occasionally. Currently, the bank allows the withdrawal of all callable term deposits before the completion of tenure. However, it will charge a premature deposit closure penalty of 1% on the FD interest rate applicable.

FAQs

Will senior citizens benefit from investing in SBM Tax Saver Fixed Deposit?

By investing in the SBM Tax Saver FD scheme, senior citizens can get an added advantage of 0.5% on the prevailing interest rate of the bank.

By what time do I need to request for renewal of your fixed deposit scheme?

If you want to renew your SBM fixed deposit, you must do so within 14 days from maturity. However, SBM Bank also offers an auto-renewal option making the renewal process hassle-free.

Is the ₹5 lakhs DICGC insurance cover applicable on SBM Bank FD?

Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover is applicable on SBM Bank FD.

What happens if I request for renewal of your FD after the stipulated time?

If SBM Bank receives your renewal request after 14 days of maturity, the bank will pay interest for the overdue period at the interest rate of the savings account.

How to apply for TDS exemption?

If your interest income exceeds more than ₹40,000 (₹50,000 for senior citizens), the bank will deduct TDS Tax Deducted at Source). If you are not liable to pay any TDS, you need to submit form 15G to the bank to inform them not to deduct any TDS. For senior citizens, form 15H needs to be submitted to the bank.

Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.

wint fd

Earn upto 8.35% interest by investing in FDs with Wint Wealth.

Explore Now