An overview of the State Bank of India
The State Bank of India (SBI) is a nationalised government-owned bank. The Government of India owns 58.6% shares in SBI and the remaining is held by various shareholders. SBI has over 14,000 branches spread across the country, making its domestic presence massive, and it keeps increasing as it acquires more state banks.
SBI offers some of the most attractive and sought after Fixed Deposit (FD) schemes in the country. The features and rates of interest offered are very competitive, and is available to all investors looking for a safe, fixed returns investment avenue.
The interest rates on FDs are subject to change depending on a bank’s operating and liquidity needs. We ensure rates at BankBazaar reflect the latest changes.
Short-term Fixed Deposit Rates
SBI offers short-term deposits from interest rates of 5.25% p.a. – 7.25% p.a., quarterly compounded.
The shortest term available is 30 days, which offers a 5.25% annual rate of interest. The rate of interest increases with an increase in the term of the FD. For deposit periods of 60, 90 and 120 days, the rate of interest is at 6.5% p.a. If you invest in a FD for 6 or 9 months, then the rate of interest you can earn are 6.75% & 7.0% p.a. respectively. The FD with a deposit tenure of one year earns an interest of 7.25% p.a. Considering a quarterly compounding frequency, the effective or annualised interest is quite competitive and a profitable short-term investment
Medium and Long-term Fixed Deposit Rates
Fixed Deposits that feature tenures of more than a year, up to 5 years, have interest rates ranging from 7.0% p.a. -7.5% p.a. The term could be for 1.6, 2, 3, 4, and 5 years. While the rates for these tenures hover around 7.0% p.a., the rate on a 1.6 & 2-years FD will give you an added advantage of an extra 0.5% making the interest 7.5% p.a. Again these rates are compounded quarterly and give customers an effective yield that delivers attractive returns.
The updated list of SBI Fixed Deposit Interest Rates, per specific tenures, is listed below:
| Duration of Deposit | Regular Deposit |
| 7 days to 45 days | 5.5 |
| 46 days to 179 days | 6.5 |
| 180 days to 210 days | 6.75 |
| 211 days to less than 1 year | 7 |
| 1 year to 455 days | 7.25 |
| 456 days to less than 2 years | 7.5 |
| 2 years to less than 3 years | 7.5 |
| 3 years to less than 5 years | 7 |
| 5 years and up to 10 years | 7 |
*Above Interest rates are as of 28 Sep 2016
SBI Reinvestment Plan Rates
State Bank of India is the country's largest nationalized government owned bank, which has a network of 14,000 branches spread across the country. They offer some of the most sought after fixed deposits in the country. They also now have a Reinvestment Plan, this will be a variant of a term deposit with the interest earned by the deposit being paid out only at the time of maturity of the plan. The tenure for this kind of deposit will be minimum of 6 months - maximum of 10 years. The minimum amount to be paid will be Rs. 1,000. This Reinvestment plan will include premature withdrawal, loan in terms of overdraft, TDS as per Income Tax norms etc.
The Reinvestment Plan can have investors from NRO, General Public and Staff deposits, the maturity value of the different tenure will be as mentioned below:
For example let’s assume the amount deposited is Rs. 100/-
| Duration of Deposit | Regular Deposit |
| 7 days to 45 days | 5.50 |
| 46 days to 179 days | 6.50 |
| 180 days to 210 days | 6.75 |
| 211 days to less than 1 year | 7.00 |
| 1 year to 455 days | 7.15 |
| 456 days to less than 2 years | 7.25 |
| 2 years to less than 3 years | 7.25 |
| 3 years to less than 5 years | 7.00 |
| 5 years and up to 10 years | 7.00 |
Senior Citizens FD Rates
Most banks offer higher rates of interest for senior citizens, with SBI the rates of interest range from 5% for a 30 day term to 7.25% for a 5 year FD. The rate of interest is increased by 0.25% for senior citizens. The rate of interest of the FD vary depending on the term as it does with FDs in general. Since the interest is compounded quarterly it can add great to the maturity value of the FD. This addition can provide senior citizens with a regular if not an additional source of income.
Details
Got something to say? Go on, you can say it; we don't bite. In fact, the more said, the better. The only thing we ask is that you keep it squeaky clean and follow our posting guidelines. Do not disclose sensitive information like your bank account details or phone number (or home planet). Comments posted on the BankBazaar site are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.