• SBI Fixed Deposit Schemes

    State Bank of India (SBI) offers a variety of investment products. Fixed Deposits (FDs) or Term Deposits are one of the key products.

    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: 5.75% p.a. to 6.85% p.a.
    • Highest Term Deposit rate: 6.85% 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 0.25% for deposits above Rs.10,000.
    • 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 6.85% 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)
    • You cannot make premature withdrawals before completing 5 years of tenure.
    • You cannot apply for loans or overdraft facility against the deposit.

    Features of SBI Multi Option Deposit Scheme (MODS)

    • Range of tenure: 1 year to 5 years
    • Minimum amount of investment: Rs.10,000
    • No upper limit on deposit amount
    • You can link your FD account to your Savings/Current account.
    • You can easily liquify your FD funds and transfer it to the linked account.
    • You will continue to earn interest on the remaining funds in the FD account.
    • The interest will be taxed under Tax Deducted at Source (TDS).
    • One can make withdrawals in multiples of Rs.1,000 only.
    • SBI MODS can be prematurely withdrawn.

    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.
    • Reinvestment Plan comes with facilities like:
    • Nomination facility
    • Loan against the deposit
    • Overdraft facility up to 90% of the deposit amount
    • Auto renewal of the deposit (if no instructions are given)

    Penalty for Premature Closure for SBI Fixed Deposits

    In case of foreclosure of the FD before maturity date, a penalty will be imposed as thus:

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