State Bank of India (SBI) offers a variety of investment products. Fixed Deposits (FDs) or Term Deposits are one of the key products. The lender offers you the option of opening a fixed deposit account for a period that ranges between 7 days and 10 years. The interest offered on such tenures is in the range of 3.30% to 5.70% p.a. for public. Senior citizens are offered additional interest of 0.50% on all tenures.
Types of SBI Fixed Deposits
- SBI Term Deposit
- SBI Tax Saving Scheme, 2006
- SBI Multi Option Deposit Scheme
- Reinvestment Plan
Features of SBI Term Deposit scheme
- Range of SBI FD rates: 3.30% p.a. to 5.70% p.a.
- Highest Term Deposit rate: 5.70% p.a.
- Range of maturities: 7 days to 10 years
- Minimum deposit amount: Rs.1,000
- No limit on the maximum deposit amount.
- Senior citizens get an additional interest rate of 0.50%
- Interest payment options: Monthly, quarterly or yearly basis
- Premature withdrawals allowed
- An account holder can avail loans and overdraft for up to 90% of the deposit value.
- Overdraft limit: Rs.25,000 to Rs.5 crore.
- Interest rate for the loan would be 1% more than the FD rate.
- Tax Deducted at Source (TDS) is applicable to the interest income as per the Income Tax Act, 1961.
- Nomination facility can be availed.
- The option for automatic renewal FD is available.
- You can convert their interest payout frequency to cumulative payout at any point.
Features of SBI Tax Savings Scheme, 2006
- Deposit range: Rs.1,000 to Rs.1.50 lakh.
- Maturity period: 5 years and 10 years.
- The interest rate for SBI Tax Savings Scheme, 2006, is 5.70% p.a.
- The account holder is entitled to tax benefits as listed under Section 80C of the Income Tax Act, 1961.
- The FD account comes in two variants:
- Term Deposit (TD)
- Special Term Deposit (STD)
- Nomination facility available.
- SBI staff and pensioners are offered a rate of return that is more than 1% above the applicable rate.
Features of SBI Multi Option Deposit (MOD) Scheme
- Range of tenure: 1 year to 5 years.
- Minimum amount of investment: Rs.10,000.
- No upper limit on deposit amount.
- You can easily liquify your FD funds and transfer it to the linked account.
- Tax Deducted at Source (TDS) applicable.
- One can make withdrawals in multiples of Rs.1,000 only.
- Premature withdrawal allowed.
- Loan facility available.
- Nomination facility available.
Features of Reinvestment Plan
- The interest income is only credited to your account on the date of maturity.
- The interest income is consistently added to the principal amount.
- The minimum amount of deposit is Rs.1,000.
- There is no upper limit on the deposit amount.
- One can choose a maturity period from 6 months to 10 years.
- Nomination facility available.
- Loan against the deposit available.
- Overdraft up to 90% of the principal deposit available.
- Mode of holding – singly or jointly.
- Premature closure available.
SBI Term Deposit interest rates: Below Rs.2 crore
| Tenure | For Genral Public (% p.a.) | For Senior Citizens (% p.a.) |
|---|---|---|
| 7 days to 45 days | 3.30% | 3.80% |
| 46 days to 179 days | 4.30% | 4.80% |
| 180 days to 210 days | 4.80% | 5.30% |
| 211 days to less than 12 months | 4.80% | 5.30% |
| 12 months to less than 24 months | 5.50% | 6.00% |
| 2 years to less than 3 years | 5.50% | 6.00% |
| 3 years to less than 5 years | 5.70% | 6.20% |
| 5 years and up to 10 years | 5.70% | 6.50% |
Note: The interest rates mentioned in the table are effective 12 May 2020
Who is eligible to apply for SBI FD account (individuals)?
- Citizens of India
- Members of the Hindu Undivided Family (HUF), firm, local bodies, any government department, company etc.
What are the documents needed for individuals to apply for SBI FD?
Valid identity proof and address proof such as:
- Aadhaar Card
- Driving License
- Passport
- Voter’s ID card
- Permanent Account Number (PAN) Card
- NREGA Card
FAQs on SBI Fixed Deposit scheme
- What is the minimum tenure for which a fixed Deposit account can be opened with SBI?
The minimum tenure for which an SBI FD account can be opened for is 7 days.
- How to get tax exemption from TDS?
If your net income does not fall under taxable limit, you can request a tax exemption by submitting Form 15G/15F to the bank.
- What is the minimum amount of deposit needed to open an FD account?
One needs to deposit a minimum of Rs.1,000 to maintain an SBI FD account.
- What is the highest interest rate offered by SBI on a fixed deposit tenure?
The highest interest rate offered by SBI is 5.70% p.a. for a tenure ranging between 1 year and 10 years for the general public and 6.50% p.a. for senior citizens.
- Do senior citizens get a different FD rate?
Yes, senior citizens are eligible to get an additional interest of 0.50% than the regular rate.
