SBI FD Rates

SBI FD Interest Rates

State Bank of India (SBI) is the oldest bank in India founded as the Imperial Bank of India during the British times. The government owns the stakes of the bank which is an Indian multinational financial association.

Fixed Deposit (FD) is the safest of investments that give high returns after a period. The interest provided on the FD is more than the general savings account. The banks also offer loans at competitive rates in exchange of the FD certificates.

The Rate of Interest on FD in SBI Varies with the Maturity Period.

SBI fixed deposit scheme offers short-term deposits with the shortest term being 30 days. SBI FD interest rates range from 5.25%pa to 7.25%pa compounded quarterly.

For 60,90, and 120 days the fixed deposit rate in SBI is 6.5% pa. A 6 month period for SBI fixed deposit gives an interest of 6.75% pa. The SBI fixed deposit interest rate for a nine month period is 7% pa.

SBI also offers medium and long-term fixed deposit tenures. The tenure ranges from more than a year to five years. The fixed deposit rate of interest for this scheme varies between 7% pa to 7.5% pa.

The rate on 1.6 & 2 years SBI FD fetches an added 0.5% pa interest making the total rate of interest 7.5%pa.

State Bank of India (SBI) Fixed Deposit Rates

It is advisable to reconfirm the FD Interest Rates from the bank before making any decision on basis of data provided below.

For Domestic Deposits - Less than Rs. 1 cr (As on Jul 01, 2017)

For Domestic Deposits - Above Rs. 10 cr (As on Nov 24, 2016)

For Domestic Deposits - Rs. 1 cr to 10 crs (As on Nov 24, 2016)

For NRO Fixed Deposit - Less than Rs. 1 cr (As on Jul 01, 2017)

For NRO Fixed Deposit - Above Rs. 10 cr (As on Nov 24, 2016)

For NRO Fixed Deposit - Rs. 1 cr to 10 crs (As on Nov 24, 2016)

For NRE Fixed Deposit - Less than Rs. 1 cr (As on Jul 01, 2017)

For NRE Fixed Deposit - Above Rs. 1 cr (As on Jul 01, 2017)

How to Close Your SBI FD Online?

SBI FD rates are a popular topic of discussion amongst people. And rightfully so. SBI fixed deposits don’t only offer a lucrative rate of interest but also offer flexible withdrawals. Account-holders can easily withdraw or close their FD accounts before maturity. The internet has made the process easier than before. Now closing one’s FD account or premature withdrawal of SBI fixed deposits is a matter of few clicks. Below are the steps of closing an SBI FD account:

• Step 1. Go to the Official website of State Bank of India. Look for the tab ‘ETDR/STDR (FD)’
• Step 2. Click on the option ‘close FD account prematurely’
• Step.3. A list of all your FD accounts will appear. Now select the one which you want to close
• Step 4. Now click on ‘proceed’ button
• Step 5. Verify all FD related details. Mention the reason for closing the account and click the ‘confirm’ button.
• Step 6. A security password will be sent to the registered mobile number. Type the code and click on ‘confirm’.
• Step 7. A confirmation message will be sent pronouncing the FD account to be closed.
• Step 8. The amount that was deposited will be credited to your preferred savings account.

In case of immediate closure, one should do this between 8 am and 8 pm.

SBI Term-wise FD Rates

Below are the SBI FD rates on the term-wise fixed deposits offered by SBI:

SBI Short-term Deposits

SBI short-term deposits are for those who want to meet short-term financial goals with quicker returns. SBI offers interest rates on these FDs ranging from 5.75% to 6.40% annually. These FDs comes with a minimum tenure of 7days and a maximum tenure of anywhere less than 1 year.

SBI Medium-term Deposits

Medium-term FDs are introduced with a lock-in period of at least 1 year and offer a lucrative rate of return on maturity. The SBI FD rates offered are ranging from 6.40% to 6.70% annually. Moreover, one can earn the highest rate of interest at 6.70% per annum for an FD with a tenure between 2 years and 5 years.

SBI long-term Deposits

Long-term Fixed Deposits are for those who want to park their extra funds for a longer tenure to save a handsome amount while earning a good rate of interest. These FDs comes with 5 years to 10 years tenure and offer a rate of interest at 6.75% per annum. Moreover, one can opt for a tax saving FD which enables the account holder to enjoy tax benefits. These come with a lock-in period of 5 to 10 years.

SBI Senior Citizen Deposits

SBI FD rates are comparatively higher for senior citizen FDs and is an ideal and lucrative option of saving for this age group. However, they can go for short-term or long-term FD deposits. The interest rates offered range from 6.25% to 7.25% per annum. For the tenure of 2 to 5 years, one can avail the highest rate of interest at 7.25% per annum. For investment period of 211 days to less than 2 years, the account holder can avail 6.90% interest per annum. On the other hand, an interest rate of 7.20% can be availed for FD tenure of 3 to 5 years. This FD is a perfect option for retirees or those who are on pensions as it works as an additional source of income.

Types of State Bank of India FDs

State Bank of India offers various types of fixed deposits to cater to the needs of its customers. The types of FDs include:

• SBI Tax Saving Scheme
• SBI MODS
• Reinvestment Plan
• SBI Flexi Deposit Scheme
• Annuity Deposit Scheme

SBI Tax Saving Scheme

Some FDs come with tax benefits. The account holders with this type of FD can enjoy tax benefits under Section 80C of Income Tax Act, 1961. These FDs come with a minimum tenure of 5 years and one can’t withdraw the money before the FD matures. Additionally, they come with a clause that allows no loan or overdraft facility against these FDs. The minimum amount that has to be deposited is Rs. 1000 with a maximum of Rs. 1,50,000 per annum.

SBI MODS

State Bank of India also provides its customers with an opportunity to invest in Multi Option Deposit Schemes, which are linked with the savings or current account. The best part of these deposits is that the customer can withdraw funds at any time and can earn the usual interest on the remaining amount in the account. While one has to invest a minimum amount of Rs. 10,000, there is no maximum limit. These schemes come with a tenure ranging from 1 year to 5 years and are clubbed with other perks like loan facility, nomination facility etc.

Reinvestment Plan

One can gain the maximum return out of their FDs with a reinvestment plan. The account holder can enjoy maximum benefit with a compounded rate of interest. The interest will not be offered at regular intervals but at the maturity of the FD. The minimum investment amount is Rs. 1000 and there is no upper limit on it. These FDs come with a minimum tenure of 6 months to a maximum of 10 years. These also offer the benefits of premature withdrawal, loan or overdraft facility, nomination and automatic renewal facility.

Annuity Deposit Scheme

By making a lump sum deposit, the account holder is eligible to receive an annuity under this type of deposit. The money will be paid as EMIs (Equated Monthly Instalment) along with a defined interest. Here, premature payment is allowed only in the case of death of the depositor. By depositing a minimum of Rs. 25,000, the account holder can also avail loan facility and nominee benefit.

SBI Flexi Deposit Scheme

This type of deposits allows the customer to make a deposit at regular intervals. In other words, one can deposit money as per his/her convenience. One can invest in these schemes for a minimum of 5 years to maximum 7 years. The minimum investment amount is Rs. 5000 while the maximum limit is Rs. 50,000 in a financial year.

How to Calculate SBI Fixed Deposit Interest Rate

The rate of interest on a Fixed Deposit account depends on the maturity period. The interest rates offered by SBI on Fixed Deposits are given in the table below:

SBI FD Calculator

State Bank of India offers a Maturity Value Calculator that helps account holders to analyze how much interest they can earn with an FD.

The calculator requires you to enter your

• Principal amount,
• Rate of interest, and
• Duration of the FD

And then, it tells you

• Interest value, and
• Total Maturity Value.

Key Information before Opening a Fixed Deposit

Here are some things every account holder should know before opening SBI Fixed Deposit account.

1. Deposit Rates: The minimum amount to open a Fixed Deposit with SBI is Rs. 1000 while there is no cap on the maximum amount.
2. Reinvestment Option: SBI offers reinvestment of the interest earned on FD, which is compounded and paid at the time of maturity.
3. Tenure: The minimum tenure for a Fixed Deposit account with SBI is 6 months while the maximum tenure goes up to 10 years.

Know More About SBI Fixed Deposit

SBI offers the following Fixed Deposit schemes to its customers:

How to Link Aadhaar with Bank Account

Linking your SBI bank account to your Aadhaar is very easy.

It requires you to fill the KYC Form and then submit your Aadhaar number and present your Aadhaar Card for verification.

SBI FD Premature Withdrawal Penalty

SBI charges penalty on premature withdrawals on fixed deposits of up to Rs. 5 lakhs. The penalty is 0.50% of the principal amount.

On Fixed Deposits ranging from Rs. 5 lakh to Rs. 1 crore, the penalty is charged at 1%.

The penalty is as mentioned above for Fixed Deposits of all tenures.

FAQs

1. Can a customer open a term deposit account online in SBI?

Ans. A customer can easily open a term deposit account online using their Net Banking Username and Password.

2. Can new customers open an FD online? If not, how can they do so?

Ans. New customers need to open a Savings Account with SBI before they can open a Fixed Deposit account.

After opening an account in State Bank of India, any customer can easily open a Fixed Deposit account online by logging into their Net Banking and following the options displayed on the screen.

3. Is it possible to deposit an additional amount into my already existing FD?

Ans. since the tenure of a Fixed Deposit account is ‘fixed’, it is not possible to deposit an additional amount into your already existing Fixed Deposit.

4. What are the consequences of not providing PAN card details?

Ans. Without your PAN card details, your KYC is incomplete with the bank.

As a result, filing your income tax return becomes a relatively complicated procedure, as you will have to separately provide your Bank Account details.

Linking your PAN card with the bank account makes this step much easier. It is compulsory to link your Aadhaar and PAN to your bank account(s) now.

5. Can an SBI FD account be closed online?

Ans. An SBI Fixed Deposit can be closed online only if it is an E-term deposit or special term deposit.

Closing a Fixed Deposit account online requires the user to log into the SBI website and then click on ‘close account prematurely’ option and then follow the simple steps.

6. What is the highest FD rate for SBI?

Ans. The highest FD interest for SBI is 6.75% for regular accounts and 7.25% for Senior Citizens, only for the Fixed Deposits with tenure of minimum 5 years.

7. Are there any special rates for senior citizens FD of SBI?

Ans. There are special FD interest rates offered by SBI for senior citizens, and these vary as per the tenure of the Deposit.

8. What is the tenure range for SBI Fixed Deposit?

Ans. The tenure range for SBI Fixed Deposits is:

• 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

9. Is there any minimum amount that I have to give for opening a Fixed Deposit with SBI?

Ans. The minimum amount for opening a Fixed Deposit with SBI is Rs. 1000.

10. Can I deposit additional amount in my FD account?

Ans. While an FD is in place, it is not possible to deposit an additional amount into it.

11. Who is eligible for opening an FD account in SBI?

Ans. Every customer of SBI who holds a savings account is eligible for opening an FD in SBI.

12. What documents are required to open an FD account in SBI?

Ans. Since only pre-existing savings account holders can open a fixed deposit with SBI, no additional documents are required for it.

13. Is it possible to change the tenure of my existing fixed deposit account with SBI?

Ans. it is not possible to change the tenure of a Fixed Deposit since the amount and tenure are fixed.

It is possible to withdraw from a Fixed Deposit prematurely but that also incurs a penalty.

In case one wants to extend the tenure of their FD, the only option is to reinvest in a new FD after the existing FD matures.

14. What are the implications of opening an FD bank account without having PAN?

Ans. All transactions in any bank account that exceed Rs. 50,000 require the account to be linked to your PAN. Since linking PAN card to accounts is mandatory, it is not common to find an account which isn't linked to PAN these days.

In case PAN is linked to the bank account, the FD will not be affected as such but transactions above Rs. 49,995 are not possible.

Latest SBI News

SBI Cuts Down FD rates

The State Bank of India offers a broad range of fixed deposits that fetch a good interest rate and plenty of other benefits such as nomination facility, flexible tenure duration, auto renewability options, different interest options, overdraft/ loan facility, etc.

Currently, the highest interest rate offered by SBI fixed deposits for individuals is 6.25 percent per annum, and the highest interest rate for senior citizens is 6.75 percent per annum.

The latest annual rate of Interest for individuals w.e.f November 1, 2017, is 5.25% for 7 days - 45 days, 6.25% for 46 days - 210 days, 6.25% for 211 days - less than 1 year, 6.25% for above 1 year - less than 2 years, 6.00% for 2 years - less than 5 years, 6.00% for 5 years - up to 10 years.

The latest annual rate of Interest for and senior citizens w.e.f November 1, 2017, is 5.75% for 7 days - 45 days, 6.75%for 46 days - 210 days, 6.75% for 211 days - less than 1 year, 6.75% for above 1 year - less than 2 years, 6.50% for 2 years - less than 5 years, and 6.50% for 5 years - up to 10 years.
23rd Nov 2017