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State Bank of India is a multinational, public-sector bank, established in 1806 under the name of Bank of Calcutta. Today, the institution’s headquarters are located in Mumbai, Maharashtra and is India’s largest operating bank in terms of total assets and market capitalisation. SBI operates more than 24,000 branches, with new outlets opening almost every day. Apart from within the country, SBI has a presence in 36 other nations worldwide.

Millions of SBI consumers maintain savings account with the bank. However, for higher interest earnings on surplus funds, you can opt for an SBI fixed deposit investment. These schemes offer sizable returns at no potential risk to your deposit.

SBI FD Rates

Fixed deposits from SBI offer interest rates between 4.50% and 5.80% per year on investments tenures between 7 days and 365 days. Senior citizens, on the other hand, are liable to receive rates from 5.00% to 6.30% per annum.

For long-term deposits (5-10 years), the interest rate is 6.10% and 6.60% for non-senior and senior citizen investors, respectively.

TenureNon-senior citizen and NRO FD (%)Senior Citizen FD (%)
7-45 days4.50%5.00%
46-179 days5.50%6.00%
6-12 months5.80%6.30%
1-5 years6.10%6.60%
5-10 years6.10%6.60%

Different Types of SBI FD Schemes

The following schemes are available to investors under SBI fixed deposit plans.

  • SBI Term Deposit Scheme – Investors can freely pick a maturity term ranging from 7 days to 10 years. The minimum investment is Rs. 1,000. Loan against FD and early withdrawal options are available.
  • Tax Saving SBI Fixed Deposit Plan – Here, the investment tenure is fixed for 5 years. The maximum investment quantum is Rs. 1.5 Lakh. However, loan against FD and premature withdrawal facility is unavailable.
  • SBI Fixed Deposit Reinvestment Plan – The maturity period for this plan is between 6 months and 10 years. Investors can start with a deposit of just Rs. 1,000. The interest earned through this scheme is reinvested into the same plan for higher interest generation. Foreclosure and FD loans are available.
  • SBI Multi Option Deposit – This is a combination of savings account and FD. Investors can withdraw the sum partially, while the remaining amount continues to earn interest. The tenure ranges between 1 and 5 years with a minimum investment requirement of Rs. 10,000.
  • SBI Annuity Deposit – A lump sum amount is invested, but payment is made through Equated Monthly Instalments. Tenure options include 36, 60, 84 and 120 months. The minimum investment allowed under this scheme is Rs. 25,000. Early withdrawal is only possible after the death of the investor.

Benefits of Choosing SBI FD

The following features of fixed deposit offered by State Bank of India make it a profitable approach for many.

  • Investors can earn interest as a lump-sum amount after FD maturity.
  • Individuals can nominate their spouse or children as beneficiaries of FDs.
  • Competitive rate of interest on FDs.
  • Auto-renewal facility is available on applicable FD schemes.
  • Senior citizens are liable to receive additional interest on their fixed deposit investments.

Eligibility Criteria for SBI FD

To invest in an SBI FD, individuals or groups must satisfy the following characteristics –

  • Resident individuals
  • NRIs with NRE/NRO account
  • Minors with parent or guardian as co-signatories
  • Partnership firms
  • Hindu undivided family members
  • Societies, clubs and agencies
  • Sole proprietorship business
  • Educational and charitable institutes

Documents Required for SBI FD

The following documents are required for investing in an SBI fixed deposit scheme –

  • Photo identification document (Aadhaar card, Passport, Voter ID, Driving license, etc.)
  • Resident proof document (Aadhaar card, Passport, Utility bills, Driving license, etc.)
  • Age proof for senior citizen and minor investors (Birth certificate, matriculation certificate, senior citizen ID, etc.)
  • Bank account details with a cheque
  • Passport size photographs

Premature Withdrawal Terms and Conditions

Early removal of funds can result in interest rate deductions, depending on the total value of an investment. If an investor deposits less than Rs. 5 Lakhs, he/she will receive the funds after a 0.5% deduction on the stated rate of interest. For deposits valued higher than Rs. 5 Lakh, this interest deduction is 1%.

Special Forms to Fill

Non-senior citizens are eligible to receive TDS exemptions on interest earnings below Rs. 40,000 for one financial year. Filing Form 15G is mandatory to avail these tax benefits for applicable investors.

Senior citizen investors are similarly eligible for TDS exemptions on earnings up to Rs. 50,000 per annum. They need to submit Form 15H.

Loan against SBI FD

State Bank of India fixed deposit investors can avail loans worth up to 90% of the FD’s outstanding value. Interest is charged at between 5.5% and 7.1% on such loans.

FAQs

  • What is the procedure for SBI online fixed deposit investment?

Visit SBI’s official website and click on the Fixed Deposit tab at the top. Select e-TDR/e-STDR option and proceed as per the instructions on the page.

  • What is the highest interest rate for SBI FDs?

The highest FD rate is 6.10% per annum for non-senior citizen investors and 6.60% per year for senior citizen investors.

  • Is premature withdrawal facility valid for every SBI FD scheme?

No. Early withdrawal or foreclosure is only available on select plans. For instance, investors cannot withdraw prematurely for investment in tax-saving instruments.

  • What is the penalty for early withdrawal?

The penalty applicable directly depends on the investment quantum. Deposits lower than Rs. 5 Lakh result in 0.5% interest deduction on the given rate. The deduction is 1% for investments worth higher than Rs. 5 Lakhs.

  • How much extra interest can senior citizens avail for FD investments in SBI?

Senior citizen investors are eligible for an excess 0.50% interest on their SBI fixed deposit plan.

  • What is the maximum tenure for SBI fixed deposit scheme?

The maximum maturity period for FD schemes is ten years.

  • How can investors change the tenure for on-going fixed deposits?

Investors cannot alter the maturity term for an existing investment. They can, instead, opt for new investment with the preferred tenure.

  • What is the minimum investment for FDs under SBI?

For most schemes, the minimum investment is Rs. 1,000. However, for SBI Multi Option, the minimum investment is Rs. 10,000, while for SBI Annuity scheme, it is Rs. 25,000.

  • What is the loan against FD repayment tenure?

The maximum repayment tenure depends on the maturity term for the FD. If an investor’s FD is about to mature in 3 years, their loan repayment tenure would also be 3 years.

  • What is the lock-in period for SBI tax-saving FDs?

The lock-in period is 5 years for tax-saving fixed deposits offered by SBI.

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