| Interest Rates: 3% to 7.6% | Time period: 7 Days to 10 Years |
| Minimum Deposit Amount: 1000 INR | Maximum Amount Allowed: 2 Crore INR |
| Tenure | Interest Rates (General Public) | Interest Rates (Senior Citizen) |
|---|---|---|
| 7 days to 45 days | 3% | 3.5% |
| 46 days to 179 days | 4.5% | 5% |
| 180 days to 210 days | 5.25% | 5.75% |
| 211 days to less than 1 year | 5.75% | 6.25% |
| 1 Year to less than 2 years | 6.8% | 7.3% |
| 2 years to less than 3 years | 7% | 7.5% |
| 3 years to less than 5 years | 6.5% | 7% |
| 5 years and up to 10 years | 6.5% | 7.5% |
| 400 days (Special Scheme i.e. “Amrit Kalash”) – Valid till 31st March 2024 | 7.1% | 7.6% |
State Bank of India (SBI) is one of the most trusted banks in India, offering a wide range of financial products and services to its customers. Fixed deposits (FDs) are one of the most popular investment options offered by SBI. FDs are safe and secure investment options that offer guaranteed returns, making them an ideal choice for risk-averse investors.
SBI offers FD interest rates that are competitive and attractive, making them a popular choice among investors. The bank offers various types of FD schemes to cater to the diverse needs of its customers. In this article, we will provide a comprehensive guide to SBI FD interest rates, including the features and benefits of SBI fixed deposits, the types of SBI bank FD schemes, eligibility to open an SBI FD account, the documents required to open an SBI FD account, term-wise SBI fixed deposit rates, SBI vs other banks’ FD rates, how to invest in SBI FD, tax on SBI fixed deposit, loan against SBI FD, premature closure of SBI fixed deposit, and frequently asked questions.
Key Takeaways
- SBI offers competitive and attractive FD interest rates to cater to the diverse needs of its customers.
- SBI offers various types of FD schemes, making it an ideal choice for risk-averse investors.
- SBI FDs are safe and secure investment options that offer guaranteed returns, making them a popular choice among investors.
Features and Benefits of SBI Fixed Deposit
State Bank of India (SBI) is one of the largest banks in India and offers a wide range of investment products, including Fixed Deposits (FDs). Here are some of the key features and benefits of SBI Fixed Deposit:
High Interest Rates
SBI offers attractive interest rates on FDs, which are among the highest in the market. The interest rates vary depending on the tenure of the FD and the category of the depositor (general public or senior citizen). As of October 2023, the interest rates for general public FDs range from 3.00% p.a. to 7.10% p.a., while the rates for senior citizen FDs range from 3.50% p.a. to 7.60% p.a.
Flexible Tenures
SBI offers FDs for a range of tenures, from as short as 7 days to as long as 10 years. This allows investors to choose a tenure that suits their financial goals and liquidity needs. Additionally, SBI offers the option of premature withdrawal of FDs, subject to certain conditions and penalties.
Choice of Interest Payment
Investors can choose to receive interest payments on their FDs either on a monthly, quarterly, half-yearly, or yearly basis. This allows investors to plan their cash flows and manage their finances more effectively.
Loan Against FD
SBI offers the option of availing a loan against FDs, which can be a useful source of liquidity in times of need. The loan amount can be up to 90% of the FD amount, and the interest rate on the loan is typically lower than that of personal loans.
Tax Benefits
SBI offers Tax Saving FDs, which offer tax benefits under Section 80C of the Income Tax Act, 1961. The minimum lock-in period for Tax Saving FDs is 5 years, and the maximum investment amount is Rs. 1.5 lakh per financial year.
Safe and Secure
SBI is a government-owned bank and is considered one of the most trusted and secure banks in India. FDs with SBI are insured up to Rs. 5 lakh per depositor by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which is a subsidiary of the Reserve Bank of India (RBI).
In summary, SBI Fixed Deposits offer attractive interest rates, flexible tenures, choice of interest payment, loan against FD, tax benefits, and safety and security. These features and benefits make SBI FDs a popular investment choice among investors in India.
Eligibility to Open an SBI FD Account
To open an SBI FD account, one must meet certain eligibility criteria. The following entities are eligible to open an SBI FD account:
- Individuals
- Joint account holders (maximum of four)
- HUFs (Hindu Undivided Families)
- NRIs (Non-Resident Indians)
- Minors (through their guardians or parents)
Individuals must be at least 18 years old to open an SBI FD account. Joint account holders must all be eligible individuals, and they must provide their PAN (Permanent Account Number) or Form 60/61 (if they do not have a PAN).
HUFs must provide the following documents to open an SBI FD account:
- PAN card
- Declaration of HUF and its members
- Proof of identity and address of the Karta
NRIs must provide the following documents to open an SBI FD account:
- Passport
- Visa or work permit
- Address proof of the country of residence
- Overseas address proof
Minors can open an SBI FD account through their guardians or parents. The guardians or parents must provide their identity and address proof along with the minor’s birth certificate.
Overall, the eligibility criteria for opening an SBI FD account are straightforward and easy to meet. By providing the necessary documents and meeting the age requirements, individuals, joint account holders, HUFs, NRIs, and minors can all open an SBI FD account and start earning guaranteed returns on their savings.
Documents Required to Open State Bank of India FD
Opening a fixed deposit account with State Bank of India is a straightforward process. However, customers need to provide certain documents to complete the account opening process. Here are the documents required to open a State Bank of India FD:
1. Identity Proof
Customers need to submit a valid identity proof document to open an FD account with SBI. The following documents are accepted as identity proof:
- Aadhaar Card
- PAN Card
- Passport
- Voter ID Card
- Driving License
- NREGA Job Card
- Any other government-issued ID proof
2. Address Proof
Along with the identity proof, customers also need to submit a valid address proof document. The following documents are accepted as address proof:
- Aadhaar Card
- Passport
- Voter ID Card
- Driving License
- NREGA Job Card
- Utility bills (electricity bill, telephone bill, gas bill, etc.)
- Bank account statement
- Any other government-issued address proof
3. Passport Size Photographs
Customers need to provide passport size photographs along with the identity and address proof documents. The number of photographs required may vary depending on the bank’s policy.
4. Nominee Details
Customers also need to provide the details of the nominee while opening an FD account with SBI. Nominee details include the name, address, relationship with the account holder, etc.
5. Other Documents
In some cases, customers may be required to submit additional documents based on the bank’s policy. These documents may include income proof, tax returns, etc.
It is important to note that the documents required may vary depending on the type of account and the amount of deposit. Customers are advised to check with the bank for the specific requirements before opening an FD account.
It is important to note that the interest rates for domestic term deposits (below Rs.2 crore) are compounded quarterly. The minimum deposit amount for SBI FD is Rs.1000, and there is no maximum limit. Additionally, SBI offers an additional premium of 50 basis points (bps) under the “SBI Wecare” deposit scheme to senior citizens.
SBI also offers special FD schemes for NRIs and minors, with varying interest rates and tenures. The interest rates for NRE and FCNR deposits are subject to change based on the LIBOR/SWAP rates and are updated periodically.
Overall, SBI FD rates are competitive, and the bank offers a variety of schemes to suit the needs of different customers. It is advisable to compare the interest rates and features of different FD schemes before investing to make an informed decision.
How to Invest in SBI FD
Investing in SBI FD is a simple process that can be done online or by visiting the nearest SBI branch. Here are the steps to invest in SBI FD:
- Open a savings account with SBI: In order to invest in SBI FD, one needs to have a savings account with SBI. If you do not have one, you can easily open one by visiting the nearest SBI branch or by applying online.
- Choose the type of FD: SBI offers various types of FDs with different tenures and interest rates. You can choose the type of FD that suits your investment needs by visiting the SBI website or by talking to an SBI representative.
- Decide the amount and tenure: Once you have chosen the type of FD, you need to decide the amount you want to invest and the tenure of the FD. SBI offers FDs with tenures ranging from 7 days to up to 10 years.
- Fill out the application form: After deciding the amount and tenure, you need to fill out the FD application form. You can download the form from the SBI website or get it from the nearest SBI branch.
- Submit the form and deposit the amount: Once you have filled out the form, you need to submit it along with the amount you want to invest. You can deposit the amount through online banking, cheque, or cash.
- Receive confirmation: After submitting the form and depositing the amount, you will receive a confirmation from SBI regarding your FD investment. You can also track your FD investment online through the SBI website.
It is important to note that SBI offers higher interest rates for senior citizens and for FDs with longer tenures. Therefore, it is advisable to use an SBI FD interest rates calculator to determine your returns accordingly.
Tax on SBI Fixed Deposit
When it comes to investing in a fixed deposit, it is important to understand the tax implications of the investment. SBI Fixed Deposits are no exception.
Taxability of SBI Fixed Deposit
The interest earned on SBI Fixed Deposits is taxable under the Income Tax Act, 1961. The interest earned is added to the depositor’s income and taxed at the applicable income tax slab rate.
TDS on SBI Fixed Deposit
SBI is required to deduct TDS (Tax Deducted at Source) on the interest earned on Fixed Deposits as per the Income Tax Act, 1961. The current TDS rate is 10% of the interest earned. However, if the depositor’s income is below the taxable limit, they can submit Form 15G/15H to SBI to avoid TDS deduction.
Tax Saving Fixed Deposit
SBI also offers a Tax Saving Fixed Deposit Scheme that allows depositors to earn an attractive rate of interest on lump-sum amounts up to Rs.1.5 lakh while also availing tax deductions of up to Rs.1.5 lakh (including other exemptions in this category as per the Income Tax Act, 1961). The minimum lock-in period for this scheme is 5 years.
Conclusion
It is important for investors to understand the tax implications of their fixed deposit investments. SBI Fixed Deposits are no exception and are subject to income tax and TDS deductions. Depositors can also consider investing in SBI’s Tax Saving Fixed Deposit Scheme to avail tax deductions and earn attractive interest rates.
Loan Against SBI FD
State Bank of India offers its customers the facility to take a loan against their fixed deposit (FD) account. This is a convenient way for customers to access funds without having to break their FD account. The interest rate on the loan is lower than that of personal loans, making it an attractive option for those in need of funds.
Eligibility
To be eligible for a loan against SBI FD, the customer must have an FD account with SBI. The amount of the loan cannot exceed 90% of the total deposit amount. The minimum loan amount is Rs. 25,000, and the maximum loan amount is Rs. 5 crore.
Interest Rates
The interest rate on the loan against SBI FD is lower than that of personal loans. As of September 2023, the interest rate is 8.40% per annum. The interest rate is subject to change from time to time, so it is advisable to check with SBI for the latest interest rates.
Processing Fees
There is no processing fee for loans against SBI FD accounts. This makes it an affordable option for those in need of funds.
Repayment
The loan against SBI FD is repayable in easy installments. The repayment period can range from 12 months to 60 months. The customer can choose the repayment period that suits them best.
Benefits
Taking a loan against SBI FD has several benefits. The interest rate is lower than that of personal loans, making it an affordable option. The customer does not have to break their FD account to access funds. There is no processing fee for loans against SBI FD accounts, making it an affordable option.
Conclusion
Loan against SBI FD is a convenient way for customers to access funds without having to break their FD account. The interest rate is lower than that of personal loans, making it an attractive option for those in need of funds. The customer can choose the repayment period that suits them best. There is no processing fee for loans against SBI FD accounts, making it an affordable option.
Premature Closure of SBI Fixed Deposit
State Bank of India (SBI) offers fixed deposits (FDs) with flexible tenures ranging from 7 days to 10 years. In case of an emergency, if the depositor needs to withdraw the FD amount before maturity, SBI allows premature closure of the FD.
However, there are certain rules and regulations that need to be followed while closing an FD prematurely. The penalty charges for premature closure of the FD depend on the tenure of the FD and the amount of deposit.
SBI’s premature withdrawal penalty calculator can be used to determine the penalty charges for premature closure of the FD. The penalty charges usually range between 0.50% and 1% of the interest rate applicable for the tenure for which the deposit has been held.
It is important to note that if the FD is closed prematurely within 7 days of the booking date, no interest will be paid by the bank.
To close an FD prematurely, the depositor needs to visit the SBI branch where the FD was opened and submit a premature withdrawal form along with the original FD receipt. The amount will be credited to the depositor’s account after deducting the penalty charges.
In case of joint FDs, premature closure can only be done with the consent of all the joint holders. The penalty charges will be deducted from the amount payable to the joint holders.
Overall, premature closure of an SBI FD is allowed, but it is important to consider the penalty charges and the loss of interest before making the decision to withdraw the amount before maturity.
Frequently Asked Questions
What are the current SBI FD interest rates?
As of September 2023, SBI offers FD interest rates ranging from 3.00% p.a. to 7.10% p.a. for the general public and 3.50% p.a. to 7.60% p.a. for senior citizens. The interest rate of SBI Tax Saving FD is 6.50% p.a. for the general public and 7.50% p.a. for senior citizen depositors. The rates are subject to change from time to time, and customers are advised to check the official SBI website for the latest rates.
What is the SBI fixed deposit double scheme?
The SBI FD Double scheme is a unique fixed deposit scheme that doubles the principal amount of the deposit in a fixed period. The scheme is available for a minimum tenure of 5 years and a maximum tenure of 10 years. The interest rate offered on the scheme is the same as that offered on regular fixed deposits.
Which bank is giving the highest interest rate on FD?
Currently, SBI offers one of the highest interest rates on fixed deposits among all banks in India. However, the interest rates offered by banks may vary depending on the tenure of the deposit, the amount deposited, and other factors.
Are SBI FD rates expected to increase in the near future?
It is difficult to predict whether SBI FD rates will increase or decrease in the near future. The rates are subject to change based on various economic factors and market conditions. Customers are advised to check the official SBI website for the latest rates.
How do SBI FD rates compare to those of ICICI and HDFC?
The interest rates offered by SBI, ICICI, and HDFC on fixed deposits may vary depending on the tenure of the deposit, the amount deposited, and other factors. Customers are advised to compare the interest rates offered by different banks before making a decision.
What is the current SBI savings account interest rate?
As of January 2024, the SBI savings account interest rate is 2.75% p.a. for deposits up to Rs. 10 crores, and 3.00% p.a. for deposits above Rs. 10 crores. The rates are subject to change from time to time, and customers are advised to check the official SBI website for the latest rates.