SBI Short Term FD Rates 2026

What is SBI Short Term FD?

A short-term FD is a low-risk investment that allows you to lock in surplus funds for a brief period and continue to earn a higher FD interest rate than a regular savings account. These deposits offer capital security and quick liquidity, making them ideal for meeting immediate financial goals or parking emergency funds.

SBI Short Term FD Interest Rates

Below are the revised interest rates applicable to Retail Domestic Term Deposits below ₹3 crore:

*SBI Short Term FD interest rates w.e.f as 15 July, 2025 

Features of SBI Short Term FD

Short Term FD in SBI offers secure, flexible, and high-utility investment features for depositors. Some of these include:

• Flexible Tenure Options: Choose FD tenures from 7 days up to 10 years, with short-term tenures under one year.
• Wide Accessibility: Open FDs at any SBI branch nationwide, ensuring convenience for urban and rural customers alike.
• Guaranteed Returns: Fixed returns throughout tenure; interest paid quarterly, at maturity, or monthly/annually for ≥12-month deposits.
• Liquidity Through Overdraft or Withdrawal: Premature withdrawal allowed; loans against FDs available with 10% to 15% margin depending on residual tenor.
• Auto Sweep Facility: SBI Auto Sweep facility allows surplus funds to sweep in FD and sweeps out to savings when needed, earning higher interest while keeping funds liquid.
• Transferability: Easily transfer FDs between SBI branches, offering flexibility when relocating or managing accounts across locations.

How to Open an SBI Short Term FD?

Opening an SBI Short Term FD is straightforward and can be done either online or offline. The process can be done as follows:

1. Online Process to Open SBI Short-Term FD

   Opening the Short Term FD online is fast and can be completed from the comfort of your home using Internet Banking or the YONO app.

   • Visit SBI Portal or YONO App: Start by logging into the official SBI website or the SBI YONO mobile app. This is where you can access all FD options.
   • Explore FD Options: Check available short-term FD tenures, compare interest rates, and choose a period that aligns with your financial goals.
   • Verify Current Rates: SBI updates interest rates periodically. Confirm the latest rates applicable for general or senior citizen deposits.
   • Enter Deposit Amount: Decide the amount to invest in the FD. The minimum amount is ₹1,000, and there is no upper limit for retail deposits.
   • Complete Booking: Navigate to the Deposits section, select Fixed Deposit, fill in all required details, and confirm your booking.
   • Track and Manage: After booking, track the deposit, request renewal, or close it prematurely using Internet Banking or the YONO app.

2. Offline Process to Open SBI Short Term FD

   Opening an FD offline is simple and involves visiting any SBI branch with the required documents and deposit amount.

   • Visit SBI Branch: Go to your nearest SBI branch with the required KYC documents, such as identity and address proof.
   • Collect FD Form: Request the Fixed Deposit application form at the branch for a short-term deposit.
   • Explore FD Options: Discuss available tenures, FD interest rates, and benefits with the bank representative to select the most suitable option.
   • Fill Application Form: Complete the FD form by entering the deposit amount, tenure, interest payout preference, and nominee details.
   • Submit and Deposit Funds: Submit the form along with the deposit amount via cash, cheque, or transfer, as per branch instructions.
   • Receive FD Receipt: Collect the FD receipt from the branch, which acts as proof of deposit. Track and manage renewals or closures at the branch when needed.

Eligibility Criteria for SBI Short Term FD

SBI Short Term FD is designed to be simple and accessible for most depositors. To open this deposit, customers must meet the following basic requirements:

• Eligible Customers: Any resident investor can open an SBI Short Term FD. The nomination facility is restricted to investor nominees, ensuring smooth claim settlement if required.
• Deposit Requirements: A minimum of ₹1,000 is required to start the deposit, with no upper limit on the maximum amount. Deposits of ₹3 crore or above are treated as bulk deposits and may be governed by different conditions.
• KYC Compliance: Depositors must complete standard KYC verification as per RBI and SBI norms. This includes submitting valid identity and address proof for branch-based deposits, while online FD opening requires existing KYC to be updated.
• Bulk Deposit Classification: Deposits amounting to ₹3 crore or more fall into the bulk category. These deposits may carry different interest structures, and depositors should confirm applicable rates before investing.

Taxation on SBI Short Term FD

Interest earned on SBI Short‑Term FDs is taxable under the Income Tax Act, and the bank deducts Tax Deducted at Source (TDS) when interest income crosses the prescribed limit. From FY 2025‑26, the threshold is ₹50,000 for general citizens and ₹1,00,000 for senior citizens. Eligible investors can submit Form 15G/15H to avoid TDS if their total income falls below the taxable limit. Ultimately, the SBI FD interest rate is added to the depositor’s taxable income and taxed according to their applicable slab.

Key Takeaways

SBI Short Term FD provides a safe, flexible way to earn guaranteed returns over a short duration. With a minimum deposit of ₹1,000 and no upper limit, FDs can be booked online via SBI Internet Banking, YONO, or at branches. SBI Short term FD rates range from 3.05% to 5.90% for general citizens and 3.55% to 6.40% for senior citizens. Liquidity is available via SBI premature withdrawal or loans with 10% to 15% margins.