SBI FD Interest Rates 2020

SBI Fixed Deposit Rates

Tenure FD Rates Senior Citizen FD Rates
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 364 days 4.40% 4.90%
1 year to 1 year 364 days 5.10% 5.60%
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SBI Bank FD

SBI 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 SBI have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in SBI are:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.50 per cent payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

SBI Fixed Deposit Rates

FDs are attractive financial instruments for depositors looking for attractive returns and high safety. SBI FD interest rates range from 2.90% p.a. to 4.40% p.a. for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term SBI FD rates for senior citizens range from 3.40% to 4.90% p.a.

Always, compare tenure wise FD rate of banks to choose the FD rate at which the bank offers the highest fixed deposit interest rate and if possible, opt for FD with highest interest rate. SBI FD rates are the highest for the deposits with a tenure of 5 years to 10 years, wherein the FD rate of interest is 5.40% p.a

SBI FD interest rates for long term deposits with tenure of 5 years to 10 years offer good returns. SBI fixed deposit rates for deposits with a tenure of 10 years is 5.40%. Senior citizen are offered deposit rates of 6.20% p.a. for long termed FDs.

Important Factors of SBI Fixed Deposit

SBI offers best FD rate of 5.40% on term deposits for a tenure of 5 years to 10 years. The bank offers special interest rate on FD for senior citizens. Current SBI FD rates for senior citizens range from 3.40% to 6.20%. Fixed Deposits rates of SBI 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.

SBI Fixed Deposit Scheme

SBI Tax Savings Scheme

Description:

  • The scheme has been designed to help the resident individuals and HUFs to save their money on tax and derive effective yields and returns on their fixed deposit.
  • Tax benefits on deposit under section 80C of Income Tax Act, 1961
  • Nomination facility available
  • Loan facility upto 90 per cent is available on the deposit
  • Interest on deposit is paid only at the time of the maturity
  • Extra interest of 0.50 per cent payable to the senior citizens

Who is eligible?

  • Resident Indians, karta for a HUF with a valid PAN number
Reinvestment Plan

Description:

  • This scheme is a variant of fixed deposit under which interest is paid out only at the time of maturity.
  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Loan facility upto 90 per cent is available on the deposit
  • Availability of auto renewal facility on the deposit
  • Extra interest of 0.50 per cent payable to the senior citizens

Who is eligible?

  • Resident Indians of 18 years of age and above
SBI Multi Option Deposit Scheme

Description:

  • Account linked to the savings or current account in which you can withdraw multiples of Rs. 1,000 from your MOD account as per your need.
  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Loan facility upto 90 per cent is available on the deposit
  • Deposits made under this scheme are completely liquid
  • Withdrawal in multiples of Rs. 1,000

Who is eligible?

  • Resident Indians, non resident Indians, hindu undivided family, companies and organisations
Regular Fixed Deposit

Description:

  • Under this scheme, the depositor is allowed to make investment into the deposit to earn attractive and higher returns along with a flexibility and security.
  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.50 per cent payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

Who is eligible?

  • Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm
Money Multiplier Plan

Description:

  • Money multiplier plan allows the depositor to link fixed deposit account to their savings account giving you the higher rate of interest.
  • Loan facility upto 90 per cent is available on the deposit
  • Nomination facility available
  • Interest on deposit is paid only at the time of the maturity
  • Extra interest of 0.50 per cent payable to the senior citizens
  • Tax benefits on deposit under section 80C of Income Tax Act, 1961

Who is eligible?

  • Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm
Flexi Deposit Scheme

Description:

  • This scheme is similar to recurring deposits where a depositor can make multiple deposits anytime during a month instead of doing a single fixed deposit.
  • Deposits can be made anytime during a month and any number of times
  • Nomination facility available
  • Interest on deposit is compounded quarterly
  • Loan facility upto 90 per cent is available on the deposit
  • Extra interest of 0.50 per cent payable to the senior citizens

Who is eligible?

  • Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

SBI FD Calculator

SBI 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 SBI. Bank may allows higher interest rate on larger deposits. SBI offers deposit amount in the range of Rs. 1,000 to No Limit.
  • Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. SBI 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 SBI is 5.40% 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 2.90% for a 7 Days FD and a rate of 5.40% 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 2.90 %. In this case, the maturity amount at the end of 7 Days will be Rs. 100,055 which includes the principal of Rs. 1 lakh and interest of Rs. 55 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.

SBI calculates quarterly interest on its fixed deposits.

FD in SBI – Premature Withdrawal

Premature closure of Term Deposit with SBI is along with the lower interest rate of 1% for deposits above Rs. 5 lakh and upto Rs. 1 crore than the contracted rate. The penal provisions for premature closure on SBI FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit SBI

SBI offers loan up to 90% against its own deposit. Note that SBI will not give you loan against FD of any other bank. SBI offers Loan against FD at the rate of 3.9% to 6.4%

Illustration - Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in SBI. 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.

Documents required to open Fixed Deposit Account in SBI

  • PAN Card or declaration in Form No. 60 or 61 as per the Income Tax Act

SBI Fixed Deposit during Coronavirus

RBI has announced a repo rate cut of 40 bps in response to coronavirus lockdown. In response to this rate cut, SBI may reduce FD rates in the near future which could adversely impact the interests of fixed depositors.

FAQs on SBI Fixed Deposit

What is the highest FD rate for SBI?

You can earn a maximum interest of 5.40% on SBI fixed deposit.

Are there any special rates for senior citizens FD of SBI?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 2.90% to 5.40%. Compared to this, the rate of senior citizens FD are in the range of 3.40% to 6.20%.

What is the tenure range for SBI Fixed Deposit?

The tenure for SBI Fixed Deposit ranges from 7 days to 10 years.

Is there any minimum amount that I have to give for opening a Fixed Deposit with SBI?

The minimum deposit amount required to book an FD with SBI is Rs. 1,000.

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 SBI?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

What documents are required to open an FD account in SBI ?

The documents required to open an FD account in SBI includes PAN Card or declaration in Form No. 60 or 61 as per the Income Tax Act.

Is it possible to change the tenure of my existing fixed deposit account with SBI ?

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 SBI 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
What is the current interest rate on FD in SBI?

Current interest for FD in SBI ranges between 2.90% - 5.40%. For senior citizens the interest rates ranges bweteen 3.40% - 6.20%.

Can a customer open a FD account online in SBI?

Yes, you can submit your application for opening a FD account on the website of SBI. After submitting the application, you will be contacted by the bank’s representative for further process.

What is cumulative FD and traditional FD?

In cumulative FD the interest amount calculated each month is added with the principal balance to calculate the interest for next month. This means that each month’s interest amount becomes the part of the invested sum next month. However, in the case of traditional FD, the interest for each month is calculated on the originally invested sum, and it paid monthly as well.

SBI FD News - Jul 2020
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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