Online SBI Fixed Deposit Rates Calculator

State Bank of India, the country’s largest public sector bank offers various kinds of banking services to fulfill the needs of retail and corporate customers. Fixed Deposits are the most common investment options for various segments of customers. There will not be risk to the principal amount and FD delivers good returns. With the internet banking facility, FD can be created and closed online as per the requirement of customers. SBI offers competitive interest rates on fixed deposits, recurring deposits and other investment options.

Benefits of SBI Fixed Deposits

The following benefits are available with SBI fixed deposits:

  • Easy to Open - You can open a fixed deposit by using the net banking facility or by approaching the SBI bank branch
  • Easy to Close - The fixed deposit can be closed before the maturity date. If you open an account online, it can be closed online. If fixed deposit is created at a branch, you should approach the bank with the deposit certificate and the account will be closed instantly.
  • Nomination Facility - Nomination facility is available for fixed deposits. You can nominate a person either online or offline as per the nature of deposit.
  • Online or Offline - SBI fixed deposits can be opened online or offline as per the convenience of the customer. You can walk-in to the nearest SBI branch to open a fixed deposit. The FD Rates Calculator can be used to find out the returns of fixed deposits.
  • Flexible Tenure Options - SBI implements flexible tenure options as follows:
    • 7 days to 45 days
    • 46 days to 179 days
    • 180 days to 210 days
    • 211 days to 364 days
    • 1 year
    • 1 year 1 day to 1 year 364 days
    • 2 years to 2 years 364 days
    • 3 years to 4 years 364 days
    • 5 years to 10 years
  • Premature Closure of FD - Premature close of fixed deposits is available online and offline. The bank will reduce the interest rate by 1% (as applicable to the fixed deposit tenure) as penalty and the rest of the amount will be credited into the savings account of the depositor.
  • Higher Interest Rate for Senior Citizens - Senior citizens will earn higher interest rates on fixed deposits. The interest rate for senior citizen deposits will be 0.5% higher than regular deposits.
  • Different Payout Options (Monthly, Quarterly, etc) - The payout options can be selected as per your requirements. Senior citizens, retired employees and businessmen can deposit higher amounts as fixed deposits and the money can be withdrawn in monthly, quarterly, half-yearly or annual basis as per their requirement.

Tenure of Fixed Deposits

SBI FD Rates are based on the principal amount and the tenure. The fixed deposits can be categorized as below (based on the tenure):

  • Short-Term Fixed Deposits - If you would like to fulfill your short-term financial goals, you can go for fixed deposits of short duration. The duration of the deposit will be in between 7 days and less than 365 days. The interest rate will be between 5.75% and 6.40%.
  • Medium-Term Fixed Deposits - If the tenure of deposit is for a minimum of one year, you can expect good returns on fixed deposits. The tenure of medium-term fixed funds will be in between 1 year and 5 years. The interest rate will be in between 6.4% and 6.7%. The bank will pay highest interest rate if the tenure is in between 2 years and 5 years. If the tenure is between 3 years and 5 years, the interest rate will be 6.7%.
  • Long-Term Fixed Deposits - The tenure of long-term fixed funds is between 5 years and 10 years. If you have surplus funds, you can invest in fixed deposits so that there will be great returns. SBI long-term fixed deposits will deliver returns above 6.75% per annum.

Tax-Saver Fixed Deposits

Tax-saver fixed deposits are long-term fixed deposits. The term of the deposits will be in between 5 years and 10 years. The minimum lock-in period is 5 years.

Senior Citizen Fixed Deposits

Senior citizens can enjoy additional benefits by investing in fixed deposits. For senior citizens (age above 60 years), fixed deposits deliver 0.5% higher interest rate than regular fixed deposits. Hence, it is safe and profitable investment option for senior citizens. No TDS (Tax Deduction at Source) will be applied for fixed deposits if the annual returns on senior citizen FDs are less than Rs. 50,000. The new facility was awarded in the Budget 2018 presented by the finance minister. Hence, there is great saving potential as well as liquidity for senior citizens in the form of fixed deposits.

Types of SBI Fixed Deposits

  • Tax-Saving Fixed Deposits - As you deposit money under tax saving scheme (with minimum lock-in period of 5 years), you will get exemption from the income tax under Section 80C. The maximum exemption that you will get on fixed deposit investment is Rs. 1.5 lakh per annum.
  • Reinvestment Plan - As you subscribe to reinvestment type of fixed deposit, the interest will not be paid at regular intervals. The interest will be reinvested and through the power of compounding interest, you will get higher rate of interest on fixed deposits. You can invest a minimum of Rs. 1000 under the reinvestment plan and there is no limit on the maximum amount. The minimum tenure of reinvestment fixed deposits is 6 months and the maximum tenure is 10 years. The fixed deposit can be renewed automatically after the end of the term. You can take loan or avail overdraft facility on the fixed deposit. Premature withdrawal of the fixed deposits is facilitated by SBI bank.
  • MODS (Multi-Option Deposit Scheme) - MODS are generally linked with either savings account or current account. If you invest money under MODS, the deposit can be withdrawn at any time. If you withdraw the amount, the rest of the amount will earn interest. The minimum amount that you should keep in your savings account is Rs. 10,000 to operate under the MODS. The tenure of MODS will be in between 1 year and 5 years.
  • Annuity Deposit Scheme - The account holder will deposit lump sum amount and money will be withdrawn in EMIs (Equated Monthly Installments). The interest along-with the principal amount will be paid to the customer’s savings account on regular basis. The minimum investment under the plan is Rs. 25,000.
  • Flexi Deposit Scheme - Instead of depositing lump sum amount, the customer will be able to contribute in small deposits. The tenure of the deposit will be in between 5 years and 7 years. The minimum amount is Rs. 5000 and the upper limit is Rs. 50,000 in a financial year.
  • E-TDR - If you have internet banking username and password, you can open e-TDR online. The tenure of the term deposit (TDR) will be in between 7 days and one year. The tenure of the special term deposit (STDR) will be in between 180 days and 10 years. The minimum deposit is Rs. 1000. The funding for the e-TDR/STDR will be done from your savings account. The e-TDR/STDR can be opened in between 8 AM and 8 PM. If you place request beyond the timings, the request will be processed after 8 AM on the next working day. If you open TDR/STDR at the branch, it cannot be closed online. You should approach the bank where the account was opened. The maturity amount should be transferred to the debit account from which it was funded. You can add nominee to your e-TDR/STDR account and senior citizens can earn higher interest rates without any issues. If you need regular income, you should opt for TDR. For growth, STDR is recommended.

Closure of Fixed Deposits

SBI net banking facility will let you create online FDs. You will also be able to close the FDs online. You can use FD Rates Calculator to understand the earnings on fixed deposits.

The fixed deposit accounts can be closed before the maturity date. If you hold e-TDR/STDR, you close the account and the proceeds will be credited to your bank savings account instantly.

The following steps can be performed to close the FD online:

Login to the SBI official website

  • Enter the username and password
  • Click on ‘Fixed Deposit’
  • Click on ‘e-TDR/e- STDR (FD)
  • Click on ‘Proceed’
  • Click on ‘Close A/c prematurely’
  • Select the Fixed Deposit Account for Closing
  • Click on ‘Proceed’
  • Enter any text in ‘Remarks’ field
  • Click on ‘confirm’
  • You will want to enter the OTP sent to your registered mobile number
  • The money will be credited to your savings account after successfully enter the correct OTP

On the other hand, the fixed deposit will be closed automatically after the end of the maturity date and the principal plus returns will be credited to your savings account. If you opt for automatic renewal of the deposit, the initial deposit plus the accumulated interest will be renewed automatically.

Interest on Fixed Deposits

Fixed deposits are safe investment options for all kinds of customers. As a matter of fact, you should have fixed deposits also in your investment portfolio. A typical investment portfolio comprises of savings deposits, fixed deposits, mutual funds, tax-saving funds, investment in equity and stocks. You can also invest in precious metals like silver and gold and immovable property such as land and flats.

SBI offers attractive interest rates on fixed deposits. You can find the SBI FD Rates on the official website. You should be aware of the maturity value before investing in various kinds of fixed deposits. The factors which influence the returns include the principal amount, rate of interest, tenure of deposit, tax on returns and interest calculation period.

Eligibility to Open Fixed Deposits

Individuals, as well as joint customers, can open fixed deposits. If you open a joint account, there should not be more than 4 applicants. A fixed deposit can be opened in the name of a minor with the help of a guardian. It is possible to open a fixed deposit by partnership, company, or institute. The fixed deposit facility is available for NRIs as well.

Documents Required for Opening Fixed Deposits

If you want to open a fixed deposit at the bank, you should need the following documents:

  • Application form
  • Copy of identity proof
  • Copy of address proof
  • PAN copy or Form 60/61
  • Aadhaar card details

The online FD can be opened instantly as the above details are readily available with the savings account. The details will be mapped to the fixed deposit as well while creating the online FD.

Nomination Facility

The nomination facility can be exercised while creating a fixed deposit. You can choose a close family member such as father, mother, wife, husband, etc. as per the case. The nomination can be changed any number of times without any issues.

Drawbacks of SBI Fixed Deposits

  • As the risk is low, the returns are moderate
  • Tax-saving fixed deposits come with a minimum of 5-year lock-in period
  • The returns on tax-saving fixed deposits will be added into the income of the taxpayer and the relevant tax should be paid as per the tax slab
  • If the interest earned on fixed deposits is more than Rs. 10,000 in a financial year, banks will apply the TDS and the customer should submit income tax returns to get back the money.

Conclusion

The minimum tenure of SBI bank deposits is 7 days and the maximum tenure is 10 years. You can invest a minimum of Rs. 1000 as FD. There is no maximum limit. The FD Rates Calculator can be used to find the returns on the investment. SBI fixed deposits offer easy liquidity including loan facility up to 90% of the deposit instantly. FD is the safety deposit and it delivers higher returns than savings deposits. Fixed deposits are best option to avoid various kinds of risks and there will be stable returns.