SBI Fixed Deposit Schemes

State Bank of India (SBI) offers a variety of investment products. Fixed Deposits 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 2.90% to 5.40% 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: 2.90% p.a. to 5.40% p.a.
  • Highest Term Deposit rate: 5.40% 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 5.40% 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 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 less than 12 months 4.40% 4.90%
12 months to less than 24 months 4.90% 5.50%
2 years to less than 3 years 5.10% 5.60%
3 years to less than 5 years 5.30% 5.80%
5 years and up to 10 years 5.40% 6.20%

Note: The interest rates mentioned in the table are effective 8 January 2021.

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

  1. 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.

  2. 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.

  3. 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.

  4. What is the highest interest rate offered by SBI on a fixed deposit tenure?

    The highest interest rate offered by SBI is 5.40% p.a. for a tenure ranging between 1 year and 10 years for the general public and 6.20% p.a. for senior citizens.

  5. 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.

News About State Bank of India Fixed Deposit

  • SBI offers special FD scheme for all senior citizens

    The State Bank of India has launched a special term deposit scheme for senior citizens, called the ‘SBI WeCare Senior Citizens’ Term Deposit Scheme’ to cater to the needs of the elderly. It has been launched to protect the income of senior citizens and offering them additional interest on the same.

    Often, much of the elderly are dependent on the interest incomes they receive, the rate cuts by the RBI on fixed deposit schemes has been a worry for many fixed deposit account holders. Some of the features of the scheme include a minimum tenure of 5 years and a maximum of 10 years. Any resident senior citizen above the age of 60 can opt for this fixed deposit scheme, however, it will not be made available for NRIs.

    The interest rate offered will be 0.8% more than the rate given to the public and TDS will be cut if annual interest earnings exceed Rs.50,000.

    31 July 2020

  • SBI offers special FD scheme for all senior citizens

    State Bank of India (SBI) has now launched a special fixed deposit (FD) scheme for senior citizens. This initiative was taken to help them earn higher interest rates. The SBI Wecare Deposit provides additional 30 basis points interest to all senior citizens on their FDs with the bank. In order to safeguard their interests as rates fall, the bank has now launched this product for senior citizens in the retail term deposit segment. SBI now offers senior citizens an additional 50 bps interest rate across all tenors. From 12 May, the bank will offer an interest rate from 3.80% to 6.50% to all senior citizens on their FDs which mature within 7 days to 10 years.

    SBI Wecare Deposit, is a special FD scheme and will be in effect up to 30 September. For all retail term deposits of '5 years and above' tenor, the bank will give the senior citizens 80 bps higher interest than that for the general public. All senior citizens who pot for SBI Wecare Deposit FD can earn an interest rate of 6.50%.

    One must note that the additional interest will not be payable if one prematurely withdraws the deposits. SBI has cut the FD interest rates by 20 bps and the bank has made an announcement of a cut of 15 basis points in its MCLR across all tenors.

    12 May 2020

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