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SBI FD Interest Rates

SBI FD Rates 2020

Last Updated 23rd Sep 2020

SBI is one of most reliable FD providers amongst a number of FD providers in the market. SBI FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on SBI FD is 5.40%. Latest SBI FD interest rate for senior citizens, on the other hand ranges between 3.40% to 6.20%.

Tenure FD interest rates Senior Citizen FD interest 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 4.90% 5.40%

SBI Fixed Deposit (FD)

SBI FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of SBI FD are:

  • Deposit Amount: SBI FD can be opened with an amount as a low ₹ 1,000 to up to No Limit.
  • FD Tenure: Ranges between 7 days to 10 years.
  • Interest Rate Range: 2.90% p.a. to 5.40% p.a.
  • Senior Citizens FD Rate: 3.40% to 6.20% p.a.
  • Highest Interest Rate: As per today’s rate, SBI’s highest interest rate on FD is 5.40% offered for a tenure of 10 years.
  • Safety of SBI Deposits: SBI deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD: SBI provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes: SBI Tax Savings Scheme, Reinvestment Plan, SBI Multi Option Deposit Scheme, Regular Fixed Deposit, Money Multiplier Plan, Flexi Deposit Scheme, SBI Wecare Deposit

SBI Best FD Plan

We need to compare tenure wise latest FD rate of SBI to choose the tenure at which it provides the highest interest rate. SBI FD rates are best for the deposits with a tenure of 5 years to 10 years, wherein the current FD rate of interest is 5.40% p.a

If one is looking to invest in short term deposits with 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.

If one is looking to invest in long term deposits, SBI FD interest rates with tenure of 5 years to 10 years are a good choice with interest rates on deposits with a tenure of 10 years at 5.40%. Senior citizens are offered special rates from bank with highest deposit rates of 6.20% p.a. on long term FDs.

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 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

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

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 ₹ 1,00,000 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 ₹ 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 ₹ 90,000 availed for 1 month only. The amount he repays after 1 month is ₹ 90,744. So, the interest charged on the loan taken is ₹ 744.

FD Account Opening Process at SBI

To open a Fixed Deposit account in SBI, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the SBI FD after reading the terms and conditions.

Nomination Facility on SBI FD

SBI offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a SBI fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

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 Wecare Deposit

Description:

  • This scheme was introduced to offer financial aid to the senior citizens in the times of falling interest rates due to the Covid-19 pandemic.As per the scheme, senior citizens can earn extra 30 bps on FD interest rates, over and above the additional 50 bps offered to them to fixed deposits.
  • SBI Wecare senior citizen deposit was launched to provide a higher fixed deposits interest rates to senior citizens in the current situation.
  • The scheme is valid till December 31, 2020.
  • This deposit scheme is applicable for term deposits above 5 years
  • The benefits can be availed on fresh deposit and renewal of maturing deposits.

Who is eligible?

  • Resident Indian citizens of age 60 years and above.

FAQs

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%.

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 ₹ 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, 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%.

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 which includes filling an application process and submitting KYC documents.

In how many years FD will double in SBI?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 5.40%. For SBI FD the number of years in which your FD will get doubled is; 72/5.40 = 13


SBI News - Sep 2020
  • 2020-09-17 : SBI changed its Fixed deposit rates
    State Bank of India changed its fixed deposit rate. The FD rate for 7 to 45 days is 2.90%, it is 3.90% for 46 to 179 days and 4.40% for 180 days to 1 year. Further, the fixed deposit rate for one year to less than three years is 5.10%, and for three years to less than five years it is 5.30%. The rate for 5 years upto ten years is 5.40%. The revised rates will be effective from 10 September 2020.
  • 2020-09-15 : SBI special FD scheme for senior citizens extended till December 31
    SBI special fixed deposit scheme for senior citizens has been extended. The scheme was launched to provide a higher interest rate to senior citizens in the current falling interest rate scenario. The special FD scheme for senior citizens will be available till year December 31.
  • 2020-08-06 : SBI reports Q1FY21 net profit of Rs. 4776.50 crore
    State Bank of India reported a net profit of Rs.4776.50 crores for the period ended June 30, 2020, as against a net profit of Rs.6909.95 crores for the period ended March 31, 2020. The Bank posted a total income of Rs.87984.33 crores backed by retail loans like home, personal, car, two-wheeler, and gold loan along with the business and mudra loans. Further, the bank total deposits which include FD, RD, current and savings account grew at 15.96 per cent YoY.
  • 2020-06-05 : State Bank of India reported the highest ever yearly net profit
    State Bank of India registered a Net Profit of Rs.3581 Crores bolstered by retail business loan, FDs and RDs in Q4FY20, an increase of 327% over Q4FY19. For the full year FY20, Net Profit stood at Rs. 14,488 Cr backed by retail loans like home, personal, gold, two-wheelers, and car loan along with business and mudra loan against Net Profit of Rs 862 Crores in FY19. This is also the highest ever yearly Net Profit recorded by the Bank.
  • 2020-05-27 : SBI slashed FD rates for the second time in a month
    State Bank of India reduced the fixed deposit rates for 2nd time in a month. The FD rate for 7 to 45 days is 2.90%, it is 3.90% for 46 to 179 days and 4.40% for 180 days to 1 year. Further, the fixed deposit rate for one year to less than three years is 5.10%, for three years to upto five years it is 5.30%, and it stands at 5.40% for five years to ten years. The revised rates will effective from 27 May 2020.
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