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Fixed Deposit Interest Rates
- SBI FD Interest Rates
SBI FD Interest Rates
SBI FD interest rates refer to the rates at which interest is paid on a fixed deposit account with the State Bank of India. The fixed deposits of SBI provide interest rates between 2.90% to 5.10% per annum on the investment tenures ranging between 7 days and 365 days. On the other hand, the senior citizens get SBI FD rates from 5.00% to 6.20% per year.
All the five schemes provide competitive SBI FD rates, therefore, offer significant returns to their investors. As an investor, all you need to do is to deposit the amount while opening the fixed deposit account and select the tenure that seems feasible to you. During the ongoing tenure, you cannot deposit amount any further or either withdraw.
Before finding out the FD interest rates in SBI, it is important to know the different types of fixed deposits offered by the State Bank of India.
SBI FD Rates 2020
| SBI FD Rates in India | ||
|---|---|---|
| Tenure | Non-senior citizen FD Rates | Senior Citizen FD Rates |
| 7 days to 45 days | 2.90% | 3.40% |
| 46 days to 179 days | 3.90% | 4.40% |
| 180 days to 210 days | 4.40% | 4.90% |
| 211 days to 364 days | 4.40% | 4.90% |
| 1 year to 1 year 364 days | 5.10% | 5.60% |
| 2 years to 2 years 364 days | 5.10% | 5.60% |
| 3 years to 4 years 364 days | 5.30% | 5.80% |
| 5 years to 10 years | 5.40% | 6.20% |
SBI FD Interest Rates Vary 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 Interest Rates
It is advisable to reconfirm the FD Interest Rates from the bank before making any decision on basis of data provided below.
SBI FD Interest Rates for Domestic Term Deposits (Less than Rs. 2 crore)
| Maturity Period | Deposit Amount (Rs.) | Interest Rate (% p.a.) (w.e.f 10.02.2020) | Interest Rate (% p.a.) (w.e.f 10.02.2020) |
| General | Senior Citizen | ||
| 7 days to 45 days | Less than 2 crores | 4.50 | 5.00 |
| 46 days to 179 days | Less than 2 crores | 5.00 | 5.50 |
| 180 days to 210 days | Less than 2 crores | 5.50 | 6.00 |
| 211 days to less than 1 year | Less than 2 crores | 5.50 | 6.00 |
| 1 year to below 2 years | Less than 2 crores | 6.00 | 6.50 |
| 2 years to below 3 years | Less than 2 crores | 6.00 | 6.50 |
| 3 years to below 5 years | Less than 2 crores | 6.00 | 6.50 |
| 5 years & up to ten years | Less than 2 crores | 6.00 | 6.50 |
SBI FD Interest Rates for Domestic Bulk Term Deposits (Rs. 2 crore and above)
| Maturity Period | Deposit Amount (Rs.) | Interest Rate (% p.a.) (w.e.f 10.02.2020) | Interest Rate (% p.a.) (w.e.f 10.02.2020) |
| General | Senior Citizen | ||
| 7 days to 45 days | 2 crore and more | 4.00 | 4.50 |
| 46 days to 179 days | 2 crore and more | 4.50 | 5.00 |
| 180 days to 210 days | 2 crore and more | 4.75 | 5.25 |
| 211 days to less than 1 year | 2 crore and more | 4.75 | 5.25 |
| 1 year to below 2 years | 2 crore and more | 4.75 | 5.25 |
| 2 years to below 3 years | 2 crore and more | 4.75 | 5.25 |
| 3 years to below 5 years | 2 crore and more | 4.75 | 5.25 |
| 5 years & up to ten years | 2 crore and more | 4.75 | 5.25 |
SBI Tax Savings Scheme
Tax saving FDs have a minimum tenure of 5 years. Unlike other FDs, these FDs cannot be withdrawn before the completion of the expiry of the FD tenure. Also, tax-saving FDs cannot be used as collateral to obtain a loan.
| FD Tenure | FD Interest Rates for Regular Citizens(in %) | FD Interest Rates for Senior Citizens ( in %) |
| 5-10 years | 5.70 | 6.50 |
SBI Fixed Deposits Features
The benefits and features of SBI fixed deposit scheme are given below:
- The fixed deposit scheme can be opened with a minimum of Rs 1000
- There is no limit on maximum fixed deposit scheme
- The tenure can range from 7 days to 10 years
- For FD schemes above Rs. 10000 offer 0.25% extra interest rate to senior citizens
- It offers interest payment option on monthly/quarterly/calendar quarter basis
- Nomination facility is also available
SBI Fixed Deposits Interest Rates for NRIs
SBI NRI term deposit rates with effect from May 12, 2020 are given in the table below:
| Tenure | Amount less than Rs 2 Crore ( in %) | Amount Rs. 2 Crore and above ( in %) |
| 1-2 years | 5.50 | 3 |
| 2-3 years | 5.50 | 3.50 |
| 3-5 years | 5.70 | 3.50 |
| 5-10 years | 5.70 | 3. 50 |
Please note that the interest is not paid if the amount is withdrawn before completion of 1 year.
SBI Interest Rates on FD for NRIs: Less than Rs. 2 crores
| Maturity Period | Deposit Amount (Rs.) | Interest Rate (% p.a.) (w.e.f 10th February, 2020) |
| 1 year to below 2 years | Less than 2 crores | 6.00% |
| 2 years to below 3 years | Less than 2 crores | 6.00% |
| 3 years to below 5 years | Less than 2 crores | 6.00% |
| 5 years & up to ten years | Less than 2 crores | 6.00% |
SBI Interest Rates on FD for NRIs: Rs. 2 crores and more
| Maturity Period | Deposit Amount (Rs.) | Interest Rate (% p.a.) (w.e.f 10th February, 2020) |
| 1 year to below 2 years | 2 crore and more | 4.75% |
| 2 years to below 3 years | 2 crore and more | 4.75% |
| 3 years to below 5 years | 2 crore and more | 4.75% |
| 5 years & up to ten years | 2 crore and more | 4.75% |
NRO SBI Fixed Deposit Interest Rates: Less than Rs. 2 crores
| Maturity Period | Deposit Amount (Rs.) | Interest Rate (% p.a.) (w.e.f 10th February, 2020) |
| 7 days to 45 days | Less than 2 crores | 4.50% |
| 46 days to 179 days | Less than 2 crores | 5.00% |
| 180 days to 210 days | Less than 2 crores | 5.50% |
| 211 days to less than 1 year | Less than 2 crores | 5.50% |
| 1 year to below 2 years | Less than 2 crores | 6.00% |
| 2 years to below 3 years | Less than 2 crores | 6.00% |
| 3 years to below 5 years | Less than 2 crores | 6.00% |
| 5 years & up to ten years | Less than 2 crores | 6.00% |
NRO Fixed Deposit Interest Rates: Rs. 2 crores and more
| Maturity Period | Deposit Amount (Rs.) | Interest Rate (% p.a.) (w.e.f 10th February, 2020) |
| 7 days to 45 days | 2 crore and more | 4.00% |
| 46 days to 179 days | 2 crore and more | 4.50% |
| 180 days to 210 days | 2 crore and more | 4.75% |
| 211 days to less than 1 year | 2 crore and more | 4.75% |
| 1 year to below 2 years | 2 crore and more | 4.75% |
| 2 years to below 3 years | 2 crore and more | 4.75% |
| 3 years to below 5 years | 2 crore and more | 4.75% |
| 5 years & up to ten years | 2 crore and more | 4.75% |
Term wise SBI FD Interest Rates
Based on the maturity period or FD term, three types of fixed deposit rates in SBI are offered. They are short-term deposit rate, medium-term deposit rate and long-term deposit rate. Following are the SBI interest rates on FD based on maturity period or term-wise fixed deposits:
Fixed Deposits Vs 100% Guaranteed Return Plans| Features | Fixed Deposits | vsGuaranteed |
|---|---|---|
| Tax benefit on premium | 48,800 | |
| Tax paid on return* | As per tax slab* | No Tax |
| Maturity Value | Guaranteed Upfront | Guaranteed Upfront |
| Life Cover |
SBI Short-Term Deposits
SBI short-term deposits are for those who want to meet short-term financial goals with quicker returns. Currently, SBI offers interest rates on these FDs ranging from 4% to 5.50% annually. These FDs comes with a minimum tenure of 7days and a maximum tenure of anywhere less than 1 year.
SBI fixed deposit scheme offers short-term deposits with the shortest term being up to 45 days. Presently, SBI FD interest rates for the short-term deposit of 7 days to 45 days range from 4%pa to 4.50%pa compounded quarterly.From46 days to up to 6 months, the interest rate on FD in SBI ranges from 4.5% to 5% pa. Six months to 210 days period for SBI fixed deposit gives an interest of 4.75% to 5.50% pa. The interest rate on FD in SBI for a period of 211 days to up to 1 year also stands at 4.75% to 5.50% pa currently.
SBI Medium-Term Deposit
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 currently offered range from 4.75% to 6% annually. The FD interest rates SBI offers varies as per the amount deposited.
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 come with a lock-in period of 5 years to 10 years. It offers a current rate of interest on FD in SBI ranging from 4.75% to 6% per annum. Moreover, one can opt for a tax-saving FD which enables the account holder to enjoy tax benefits*.
SBI Fixed Deposits for Senior Citizens
SBI FD rates are comparatively higher for senior citizen FDs and an ideal and lucrative option of saving funds for this age group. This FD is a perfect option for retirees or those who are on pensions as it works as an additional source of income.
The SBI FD interest rates offered range from 4.50% to 6.50% per annum. For the tenure of 1 year to 5 years, one can avail the highest rate of interest on FD in SBI of 6.50% per annum. For an investment period of 211 days to less than 2 years, the account holder can avail 5.25% to 6% interest rate on FD in SBI per annum.
How to Calculate SBI FD Interest Rates
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 Interest Rate Calculator
State Bank of India offers a Maturity Value fixed deposit 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.
Types of SBI Fixed Deposit Schemes
State Bank of India offers different types of fixed deposit schemes to cater to the needs of its customers. Broadly there are five types of SBI fixed deposit schemes:
- SBI Tax Saving Scheme
- SBI Multi Option Deposit Scheme
- Reinvestment Plan
- SBI Flexi Deposit Scheme
- SBI 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.
| Highlights | |
| Minimum deposit | Rs. 1000 |
| Maximum deposit | Not more than 1.5 lakh |
| Premature withdrawal | Not allowed before completion of 5 years |
| Loan Facility | No |
| Senior citizen ROI | 0.25% extra on the normal rate of interest on FD in SBI |
| Overdraft | No |
SBI Multi Option Deposit Scheme
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.
| Highlights | |
| Minimum deposit | Rs. 10,000 |
| Maximum deposit | No upper limit |
| Premature withdrawal | Allowed |
| TDS deduction | Applicable on SBI FD rate of interest earned |
| Loan Facility | Yes |
| Nomination facility | Yes |
Reinvestment Scheme
One can gain the maximum return out of their FDs with a reinvestment scheme. The account holder can enjoy maximum benefit with a compounded SBI FD rate of interest. The interest will not be offered at regular intervals but on 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.
| Highlights | |
| Minimum deposit | Rs. 1000 |
| Maximum deposit | No upper limit |
| Premature withdrawal | Allowed |
| Loan Facility | Yes |
| Payment of Interest | Compounded and paid at the time of maturity |
| Overdraft | Yes |
SBI Flexi Deposit Scheme
This type of deposit scheme allows the customer to make deposits 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 a maximum of 7 years. The minimum investment amount is Rs. 5000 while the maximum limit is Rs. 50,000 in a financial year.
| Highlights | |
| Minimum deposit | Rs. 5000 |
| Maximum deposit | Rs. 50,000 |
| Premature withdrawal | Allowed |
| Loan Facility | Yes |
| Nomination facility | Yes |
SBI 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 Installment) along with a defined SBI rate of interest on FD. Here, premature payment is allowed only in the case of the death of the depositor. By depositing a minimum of Rs. 25,000, the account holder can also avail loan facility and nominee benefit.
| Highlights | |
| Minimum deposit | Rs. 25000 |
| Maximum deposit | No limit |
| Premature withdrawal | Only applicable in case of the death of the depositor |
| Loan Facility | Yes |
| Nomination facility | Yes |
Term Limits for SBI Fixed Deposit Schemes
Fixed deposit rates in SBI are offered for all types of FDs. The following table shows the tenure limits for the various fixed deposit schemes offered by SBI to its customers:
| Fixed Deposit Schemes | Minimum Tenure | Maximum Tenure |
| SBI Tax Saving Scheme | 5 years | 10 years |
| SBI MODS | 1 year | 5 years |
| Reinvestment Scheme | 6 months | 10 years |
| SBI Flexi Deposit Scheme | 5 years | 7 years |
| Annuity Deposit Scheme | 3 years | 10 Years |
How to Open a Fixed Deposit Account in SBI?
To make the most of SBI interest rates on fixed deposits, here are some of the things that every account holder should know before opening an SBI fixed deposit account:
- Fixed Deposit Rates in SBI–Before opening a fixed deposit, it is crucial to go through the current FD interest rates in SBI. This will enable you to know the amount that you can expect to earn upon maturity.
- Deposit Amount –One should know the minimum and the maximum deposit amount required to open a fixed deposit in SBI. While the minimum amount to open a fixed deposit account with SBI is Rs. 1000, there is no cap on the maximum deposit amount.
- Reinvestment Option–Check for the reinvestment option under the SBI fixed deposit scheme. Reinvestment option allows you to reinvest the amount earned through SBI interest rates on FD, which is compounded and paid at the time of maturity.
- Tenure–Go through the fixed deposit term limit for different types of SBI FD schemes. The minimum tenure for a fixed deposit account with SBI is 6 months while the maximum tenure goes up to 10 years.
Documents required to open Fixed Deposit Account in SBI
SBI fixed deposit account can be opened at the bank by furnishing the following documents:
- SBI FD Application form
- Copy of Applicants identity proof
- Copy of Applicants address proof
- PAN copy or Form 60/61
- Applicants Aadhar card details
SBI fixed deposit scheme can be opened easily online if you have SBI bank savings account.
Know More About SBI Fixed Deposit
SBI offers the following Fixed Deposit schemes to its customers:
| Fixed Deposit Scheme | Minimum Tenure | Maximum Tenure |
| Reinvestment Scheme | 6 months | 10 years |
| SBI MODS | 1 year | 5 years |
| Annuity Deposit Scheme | 3 years | 10 Years |
| SBI Flexi Deposit Scheme | 5 years | 7 years |
| SBI Tax Savings Scheme | 5 years | 10 years |
How to Link Aadhaar with Bank Account
In order to earn interests through SBI FD rates, it is important to ensure that your SBI bank account has been linked with your Aadhaar number. The process to link an SBI bank account with Aadhaar is very easy. All you have to do is to fill the KYC form of SBI and mention your Aadhaar number on it. You might have to submit a copy of your Aadhaar Card along with your KYC form. You will also be required to present your Aadhaar Card to the bank officials for verification. Post verification, your Aadhaar will be linked with your bank account.
Fixed Deposit in SBI - 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.
Loan Against SBI Fixed Deposit
SBI Fixed deposit account holders can avail loan facility on up to 90% of the FD’s principal amount.
How to Close SBI Fixed Deposit Account 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.
FAQs
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Q1. 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. -
Q2. 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. -
Q3. 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. -
Q4. What are the consequences of not providing PAN card details
Ans:. Without your PAN card details, your KYC is incomplete with the bank. -
Q5. 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. -
Q6. 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. -
Q7. 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. -
Q8. What is the tenure range for SBI Fixed Deposit
Ans:. The tenure range for SBI Fixed Deposits is: -
Q9. 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. -
Q10. 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. -
Q11. 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. -
Q12. 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. -
Q13. 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.
News
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State Bank of India has Cut Down Its FD Rates by 40 bps Across All Its Tenors
The State Bank of India as cut down its FD interest rates by 40 bps (basis points) across all the tenors. The new rates of FD will be applicable from 27th May 2020. After this sharp cut in rates, SBI’s FDs with tenure between one year to less than two years will have a 5.1% rate, from three years to less than five years will have 5.3% interest rate. From five years to up to ten years it will have a 5.4% interest rate. This is for the second time in a row when this public sector bank has slashed down its interest rates in May month itself.
Rates of FD from May 2020
Tenors Current Rate Rates from 27th May 2020 Current Rates for Senior Citizens Rates form 27th May 2020 Seven Days to Forty-Five Days 3.3 2.9 3.8 3.4 Forty-Six Days to One Seventy-Nine Days 4.3 3.9 4.8 4.4 One-Eighty Days to Two Hundred-Ten Days 4.8 4.4 5.3 4.9 Two Hundred Eleven Days to less than One Year 4.8 4.4 5.3 4.9 One Year to Less than Two Years 5.5 5.1 6 5.6 Two Years to Less than Three Years 5.5 5.1 6 5.6 Three Years to Less than Five Years 5.7 5.3 6.2 5.8 Five Years to up to 10 Years 5.7 5.4 6.5 6.2 From the State Bank of India Website
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
It was early in May when SBI has lowered its rate of interest for its FDs by 20bps. These rates were applicable for the FDs of up to three years. This cut down became effective from 12th May 2020.
Despite cutting down the rate of interest of some FDs, the bank has as well launched an FD to safeguard the interest of senior citizens in this falling interest rate time. The bank gave this information in its press release. In this press release, the bank also stated that the product would be named as SBI Wecare Deposit and will be a term deposit of retail nature for senior citizens. This product will be effective from 30th September 2020.
As per the press release, this new product will provide an additional 30bps premium to the senior citizens having a tenor of five years and above.
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SBI Slashes FD Rates Amidst Lockdown3.0
The State Bank of India (SBI) has slashed its fixed deposit (FD) rates by 20 basis points or bps for all deposits with tenures of up to three years. The new FD rates have come into effect from 12 May 2020 amidst lockdown 3.0.As per the latest announcements, the new SBI FD rate for fixed deposits between 7 to 45 days is 3.3%, while FDs with a maturity between 46 to 179 days will earn 4.3% interest.
Similarly, the new SBI rate for FDs between 180 days to up to one year is 4.8% and fixed deposits between one year to less than three years will fetch 5.5% interest.
Similarly, the new SBI FD rate for senior citizens with FDs between 7 to 45 days is 3.8% and the FDs between 46 and 179 days will earn 4.8% interest. Moreover, the new SBI rate for FDs between 180 days to up to one year is 5.3% and FDs between one year to less than three years will earn 6% interest.
However, no changes have been made to fixed deposit rates for FDs with a tenure between three years and 10 years. Therefore, the SBI FD rate for the general public with FDs maturing between three to up to 10 years remains at 5.7%. On the other hand, the SBI FD rate for senior citizens with FDs between three to up to 5 years is 6.2% and FDs maturing between 5 years to up to 10 years will continue to earn 6.5% interest.
This is the third fixed deposit rate cut by SBI in the last two months. As per an official statement by the bank, the FD rate cut has been made to maintain adequate liquidity in the bank and the system. The new FD rate is down by 20 basis points where 1 per cent is equal to 100 basis points or bps.
Check the new SBI FD rates with effect from 12 May 2020 below:
Tenure Limit New SBI FD Rates w.e.f. 12 May 2020
(for General Public)New SBI FD Rates w.e.f. 12 May 2020
Citizens)7 days to 45 days 3.3.% 3.8% 46 days to 179 days 4.3% 4.8% 180 days to 210 days 4.8% 5.3% 211 days to up to 1 year 4.8% 5.3% 1 year to up to 2 years 5.5% 6% 2 years to up to 3 years 5.5% 6% 3 years to up to 5 years 5.7% 6.2% 5 years to 10 years 5.7% 6.5% -
SBI Launches New FD Scheme for Senior Citizens
The State Bank of India (SBI) has launched a new fixed deposit scheme for the elderly or senior citizens. The new scheme is known as the ‘SBI Wecare Deposit’ and is available since 12 May 2020.The new scheme offers a higher rate of interest to senior citizens. As per reports, an additional premium equivalent to 30 basis points or bps is payable to senior citizens with term deposits with a tenure of 5 years to up to 10 years.
Currently, the SBI already provides an additional 50 bps interest to senior citizens as compared to the general public on fixed deposits. Therefore, the new deposit will enable senior citizens to earn a total of 80 bps additional premium on fixed deposit with a tenure of 5 years and above.
However, the additional premium will not be payable if the depositor withdraws from the deposit prematurely.
The SBI Wecare Deposit scheme is open until 30th September 2020.
Moreover, the SBI also slashed its FD rates for tenures of up to three years by 20 bps for both general public and senior citizens with effect from 12 May 2020. But the FD rates remain the same for FDs with tenure of three years and above.
Thus, the present SBI FD rate for senior citizens with FDs maturing between 7 days and 45 days is 3.8% and the rate for FDs between 46 days to 179 days of tenure is 4.8%. Similarly, FDs between 180 days to up to one year of tenure will earn 5.3% interest and FD rate for fixed deposits of tenure of one year to up to three years is 6%.
On the other hand, FD rate for fixed deposits with tenure between three years and five years remains at 6.2% and FDs between five years and up to 10 years will continue earning an interest of 6.5%.
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SBI For the Second Time Cuts Down FD Interest Rate In a Month
One of India’s most preferred and largest bank State Bank of India (SBI) for the second time within a month has cut down interest rates on the fixed deposits. From March 10, 2020, the revised rates have been into effect. Earlier on 10 February 2020, State Bank of India had cut interest rates.As per the current revision, the SBI FD’s between 7 days to 45 days, which earlier 4.5% will currently fetch 4%. Likewise, the fixed deposits that are one year to less than 5 years, which earlier fetched 6% will now fetch 5.9% and between 5 years up to 10 years, which earlier fetched 6% will now fetch 5.9%.
However, the senior citizens in comparison to the common people will continue getting 50 basis points higher interest rates. Any retails fixed deposits, which is of less than Rs. 2 crores the rates will be applicable the same.
The new FD interest rates will be made applicable to both the fresh deposits and the renewal of the maturing deposits. Besides, it is expected that other banks might also lower interest rates.
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SBI app launches Multi-Option Deposit
SBI has launched the Multi-Option Deposit Scheme with Term deposits linked to Savings or Current Accounts. Normally, Term Deposits are fully liquidated anytime you need funds; but the MODS account allows you to withdraw money in multiples of 1000 while the balance in the MODS account continues to earn the Term Deposit rates as applicable at time of initial deposit. -
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.
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SBI Hikes Up Rate of Interest On 1 Crore To 10 Crore Deposits
The excess liquidity that had flooded the banking sector due to demonetization, is drying out. As per Nomura Global Research, deposit growth normalized to 9.8 percent in the month of October. Bank credit has moved up as well. Now State Bank of India has hiked its rate of interest on bulk deposits. It has, also, reversed its rate cut immediately after demonetization.In the previous month, SBI had cut down the interest rate on deposits below 1 crore Rupees by 25 basis points. It has decreased the space between bulk deposits and high yielding retail deposits to 175bps, earlier it was 200bps. With this increase, space has narrowed down further to 100bps.
As per a Times of India report, the revised rates are a reflection of stiffening liquidity due to the move reducing the distance between wholesale rates and retail rates. As per C. Venkat Nageswar, DMD (Deputy Managing Director) global markets, SBI- "The decision was solely pushed by investment opportunities."
While the spike in rates looks tempting, cautiously shop around before investing your money. According to the media reports, these bulk deposit rates, even after the spike, are lesser than what is offered by other banks for bulk deposits.
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