SBBJ FD Interest Rates, Oct 2017
SBBJ FD rates
|Tenure||General Rates||Senior Citizen Rates|
|7 days to 45 days||5.50%||6.00%|
|46 days to 179 days||6.50%||7.00%|
|180 days to 210 days||6.50%||7.00%|
|211 days to 364 days||6.50%||7.00%|
|456 days to 1 year 364 days||6.75%||7.25%|
|1 year to 455 days||6.90%||7.40%|
|2 years to 2 years 364 days||6.75%||7.25%|
|3 years to 4 years 364 days||6.50%||7.00%|
|5 years to 10 years||6.50%||7.00%|
The above rates are applicable for deposits of below Rs. 1 crore.
SBBJ FD Interest Rates
SBBJ offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of SBBJ have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in SBBJ are:
SBBJ Fixed Deposit Rates
SBBJ offers best FD rate of 6.90% on term deposits for a tenure of 1 year to 455 days.The bank offers special interest rate on FD for senior citizens. Current SBBJ FD rates for senior citizens range from 6.00% to 7.40%. Fixed Deposits rates of SBBJ are a function of many factors such as monetary policies of RBI, economic growth rate, credit demand and liquidity position of the bank.
The factors affecting Fixed Deposit interest rates are as follows:
Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and repo rate affects the interest rate of all banking instruments including the fixed deposit.
Recession – Recession results in a decrease in the interest rate offered on fixed deposit. At the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.
Inflation – Inflation has a positive effect on a fixed deposit interest rate. Banks typically fix interest rates of FD in a manner that it is higher than the existing inflation rates. Hence, FD rates tend to be higher in a period of rising inflation.
Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. In a booming economy, people need and are willing to take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through fixed deposits.
SBBJ Fixed Deposit
SBBJ FD Calculator
SBBJ fixed deposit calculator helps you to calculate maturity value of your deposited amount at the interest rate offered compounded at quarterly. The amount of fixed deposits, interest rates on FD, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.
- Deposit amount – This is the initial amount deposited by a customer in SBBJ. Bank may allows higher interest rate on larger deposits. SBBJ offers deposit amount in the range of to .
- Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. SBBJ offers a higher rate of interest on fixed deposits of longer tenure and lower interest rate on deposits of less than a year. Highest interest rate offered by SBBJ is % for deposit amount below Rs. 1 crore corresponding to a deposit tenure of years months days to years months days .
- Period of deposit - Bank offers low interest rate for short tenure FDs and higher interest rate for long tenure FDs. Bank offers a rate of 5.50% for a 7 Days FD and a rate of 6.50% for a 10 Years FD.
- Interest Compounding Frequency - This determines the frequency at which interest is compounded. Compounding frequency can be monthly, quarterly, half yearly or annual frequency.
Illustration: : Mr. A opens a FD account of Rs. 1 lakh with a tenure of 7 Days at an interest rate of 5.50%. In this case, the maturity amount at the end of 7 Days will be Rs. 100,105 which includes the principal of Rs. 1 lakh and interest of Rs. 105 is earned on the principal amount during the period. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.
SBBJ calculates quarterly interest on its fixed deposits.
FD in SBBJ – Premature Withdrawal
Premature closure of Term Deposit with SBBJ is along with the lower interest rate of 1% than the contracted rate. The penal provisions for premature closure on SBBJ FD are subject to change from time to time and may also vary with deposit schemes.
Loan against Fixed Deposit SBBJ
SBBJ offers loan up to 90% against its own deposit. Note that SBBJ will not give you loan against FD of any other bank. SBBJ offers Loan against FD at the rate of 6.5% to 7.9%
Maximum loan tenure is restricted up to the maximum tenure of the FD.
Illustration - Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in SBBJ. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.
FAQs on SBBJ Fixed Deposit
You can earn a maximum interest of 6.90% on SBBJ fixed deposit.Are there any special rates for senior citizens FD of SBBJ?
Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 5.50% to 6.90%. Compared to this, the rate of senior citizens FD are in the range of 6.00% to 7.40%.What is the tenure range for SBBJ Fixed Deposit?
The tenure ranges from 7 days to 10 years.Can I deposit additional amount in my FD account?
No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.Who is eligible for opening an FD account in SBBJ?
All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.Is it possible to change the tenure of my existing fixed deposit account with SBBJ?
No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.What are the implications of opening an FD bank account without having PAN?
Following are the implications for the customers opening an FD account with SBBJ without their PAN card
- TDS will be deducted at the rate of 20% as against 10% under section 206AA
- NO TDS credit from the Income Tax department
- NO TDS certificate will be issued
- Form 15G/H and other exemption certificates will be invalid and penal TDS will apply