SBI Short Term FDs - Benefits and Rates in 2025

How to Open an SBI Short Term FD

An SBI Short Term FD could be opened by an individual completely online or even offline at any branch. Here is a step-by-step process for opening an SBI Short Term FD:

1. Compare:

   Visit the official website of SBI or log in to SBI YONO. Compare SBI FD interest rates and choose the FD tenure from 7 days to less than a year.
   
   

2. Check Current Rates:

   SBI Bank fixes deposit interest rates and keeps changing them after a certain interval of time. For every fixed deposit tenure option, confirm with the bank for the latest interest rates that are being displayed. Interest rates vary slightly for general customers and for senior citizens.
   
   

3. Select Period & Amount:

   Enter the amount to be deposited and select the tenure; some of the tenures are 45 days, 90 days, and 180 days.
   
   

4. Booking:

   While logged into Internet Banking or via the YONO App, go to the Deposits section. Select Fixed Deposit, fill in the required information, and confirm your booking.
   
   

5. Track & Manage:

   You can track it through your online banking or mobile app. SBI allows easy renewal and premature closure.

There is no special documentation required while booking short-term FDs in SBI digitally, so it becomes easy for individuals to open a short-term SBI FD.

SBI Short Term FD Rates: A Quick Overview

Before proceeding with your investment, it’s essential to know the interest rates offered by SBI for short-term FDs. These rates change depending on the tenure and whether you're a senior citizen or a general customer. The following table depicts the updated 2025 rates:

Who Can Open an SBI Short Term FD?

Eligibility for opening an SBI short-term FD is simple:

1. Age:

   Any Indian resident above 18 years of age. For minors, accounts can be opened jointly with a guardian.
   
   

2. Residency:

   Resident Indians and select NRIs (via NRE/NRO accounts).
   
   

3. KYC Documents:

   PAN card, Aadhaar, and proof of address are mandatory.
   
   

4. Account Holder:

   You must hold an SBI savings account or current account with SBI.

Features of SBI Short Term FDs

SBI Short Term FD offers various features for conservative investors and those in dire need of funds:

1. Flexible Tenures

   These FDs can have short tenures, ranging from a minimum of 7 days to a maximum of less than 12 months, making them flexible to cater to varying investment requirements.

2. Assured Returns

   The interest rate on an SBI short-term FD is fixed at the time of booking and remains so throughout the tenure, assuring predictable returns.

3. Low Deposit Requirement

   SBI short-term FDs demand a low amount of minimum deposit starting from just Rs. 1,000 for investors, making it available for a wide range of investors.

4. Safety of Funds

   Backed by the trustworthy bank name and deposit insurance of Rs. 5 lakh up to, these FDs provide security for your investment.

5. Senior Citizen Benefit

   Above the normal interest rates payable on SBI short-term FDs, senior citizens will be entitled to receive 0.50% additional interest per annum, providing better returns for aging investors.

6. Premature Withdrawal

   Premature withdrawals are often permitted, yet they will attract a small penalty fee for early closure, thus allowing you to have access to your funds when it is needed.

7. Auto-Renewal Option

   SBI also allows an option for auto-renewals of their FDs, thereby ensuring the continued investment without the need for going manual on any step of it.

Taxation Aspects of SBI Short Term FDs

Interest on SBI short-term FDs is fully taxable under the heading "Income from Other Sources." Here are the important points to know about the taxation of these FDs:

1. TDS Deduction

   When interest income crosses Rs. 40,000 in a financial year (Rs. 50,000 for senior citizens), Tax Deducted at Source (TDS) is applicable.

2. Form 15G/15H

   You may opt to submit a Form 15G/15H. The Form 15G is for non-senior citizens whereas the 15H is for senior citizens. This will help you avoid TDS deduction when your total income is below the taxable limit.

3. Reporting Interest

   Interest from your SBI short term FD has to be shown in the annual income tax return filed by you, irrespective of whether the deduction of TDS has been made.

Key Takeaway

SBI short term FDs offer a stable and flexible way to manage savings over short periods. With guaranteed returns and a low minimum deposit amount, they stand as a common choice for people looking to park their funds temporarily. They are ideal for managing immediate financial needs or achieving short-term goals, offering a straightforward investment solution.