SBI FD - Scheme, Eligibility, Documents

SBI is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between 7 days to 10 years. Apart from that, SBI FD offers regular returns on fixed deposits ranging between 2.90% to 5.40%. For senior citizens, the interest rates on fixed deposits range between 3.40% to 6.20%. In addition to that, SBI fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

Different type of SBI term deposit products offered to the investors are listed as follows:

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.
• SBI Tax Saving Fixed Deposit allows the resident individuals and HUFs to save their money on tax and earn high yields on their deposits.
• You can also avail nomination facility with SBI Tax Saving FD.
• Loan against FD upto 90 per cent of the deposit amount.
• Interest on deposit is paid only at the time of the maturity
• Extra interest of 0.50% on Senior citizens FD.

Eligibility:

• Both Resident Indians and Karta for a HUF(Hindu Undivided Family) with a valid PAN number can apply for this scheme.

Description:

• This scheme is a variant of fixed deposit under which interest is paid out only at the time of maturity.
• Interest on the fixed deposit is paid only at the time of maturity.
• With reinvestment plan for FD can also avail nomination facility.
• Loan against FD upto 90 per cent of the deposit amount.
• Availability of auto renewal facility on the deposit
• Extra interest of 0.50% on Senior citizens FD.

Eligibility:

• Resident Indians of 18 years of age and above

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 the fixed deposit is paid only at the time of 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

Eligibility:

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

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% on Senior citizens FD.
• Availability of auto renewal facility on the deposit
• Earn higher returns on the money deposited

Eligibility:

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

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 the fixed deposit is paid only at the time of maturity.
• Extra interest of 0.50% on Senior citizens FD.
• Tax benefits on deposit under section 80C of Income Tax Act, 1961

Eligibility:

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

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

Eligibility:

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

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 stands extended till June 30, 2021.
• This deposit scheme is applicable for term deposits above 5 years
• The benefits can be availed on fresh deposit and renewal of maturing deposits.

Eligibility:

• Resident Indian citizens of age 60 years and above.

SBI fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are mentioned below:

• Guaranteed returns: The best thing about SBI FD is that it offers guaranteed and assured returns to the investors. The return offered on a fixed deposits is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, SBI offers FD rates up to 5.40%. The interest rates offered on SBI FD is not only assured but also way higher than a savings account.
• Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, SBI term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
• Loan against FD: The investment made in an FD scheme is not only a reliable investment option but can also act as an asset. This is because SBI fixed deposit allows one to borrow a secured loan against SBI FD. Benefits of Loan Against FD of SBI are as follow:
  • Loan against FD of SBI offers the loan amount upto 90%-95% of the FD amount.
  • The interest charged on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
  • Loan against FD of the SBIs flexible repayment options.
  • The processing fee of Loan Against FD in the SBI is nil.
  • It is a hassle-free loan and does not require the depositor to break the FD.
Loan Against Fixed Deposit
• Flexible tenures: SBI FD offers the investors the flexibility to choose the investment tenure as per their convenience. SBI offers fixed deposit for a minimum tenure of 7 days up to a maximum tenure of 10 years. SBI offers different interest rates across FD tenures.
• Flexible investment: Apart from the flexibility of tenure, SBI fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of Rs. 1,000. Apart from that, one can invest in the SBI FD up to a maximum of No Limit.

Though a fixed deposit with SBI means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

Withdrawing funds prematurely from SBI will attract an interest rate lowered by Allowed below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of SBI fixed deposits with tenure less than seven days, the bank does not pay any interest.

SBI FD facility can be availed by the following type of investors:

• Indian Citizens
• Members of HUFs or the Hindu Undivided Family
• Business firms
• Local governing bodies
• Government departments
• Employees of private limited companies
• Trust accounts

SBI fixed deposit requires one to submit the following documents:

• Passport size photographs
• Identity proofs such as Aadhar card, passport, PAN card, and driving license.
• Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
• Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
• Bank account details such as passbook and account number.

Credit Cards againstSBI FD are secured credit cards. They are availed against the amount deposited in the term deposits. They are an ideal option for individuals with low CIBIL score and salary. Below mentioned are the important features of Credit Cards against SBI FD:

• The limit offered on the credit card depends upon the amount deposited in the fixed deposits. Generally, banks offer around 80% of the deposit amount as the total credit limit on the card.
• Credit Cards against the fixed deposits require minimum documentation.
• The minimum tenure of the term deposits should be 6 months to avail credit card against it.
• Secured Credit cards also offer discounts, cashback and rewards.
• The cardholder continues to earn the same applicable interest rate on FD.

✅What is the loan against FD repayment tenure in SBI?

Loan against FD is the  facility which allows the investor to avail the loan against the amount deposited in the term deposit. SBI offers the loan against FD facility to the FD investors with a repayment tenure of up to 10 years.

✅ What is the minimum investment for FDs under SBI?

SBI Fixed Deposit is one of the safest investment avenues and it can be availed with a minimum deposit of Rs. 1,000.

✅ What is the minimum amount for a fixed deposit in SBI?

The minimum amount required for a fixed deposit investment in SBI fixed deposit is Rs. 1,000.

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

Currently, SBI offers an interest rate ranging between 2.90% to 5.40% on its fixed deposits.

✅ What is the penalty for early withdrawal in SBI?

Bank charges penalty on premature withdrawal of fixed deposits. The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

✅ What is the minimum FD tenure for which a fixed Deposit account can be opened in SBI?

SBI fixed deposit can be opened with a minimum tenure of 7 days. The tenure of the SBI fixed deposits ranges from 7 days to 10 years.

✅Can I deposit additional amount in my SBI 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 KYC documents and Passport size photos.

✅In how many years FD doubled in the SBI?

The time SBI fixed deposits will take to double the initial amount will depend upon the rate of interest offered on the FD. You can calculate the maturity amount of the SBI FD at MyLoanCare by entering the amount you want to deposit and the interest offered on FD.

✅Can an NRI open a SBI fixed deposit account?

No, Non-Resident Individuals are not allowed to invest in SBI schemes. It means that they are not eligible to invest in fixed deposits.

✅Is the SBI safe for FD?

Yes, the SBI is one of the safest avenues for any investments. SBI is backed by the Government of India and the returns on any investment including fixed deposits are guaranteed.

✅Is it wise to take a loan against FD from the SBI?

Yes, opting for a Loan Against FD is an excellent decision. The reasons to take loan from SBI are:

• It offers the loan upto 90%-95% of the FD amount.
• The interest levied on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
• Loan against FD offers flexible repayment options.
• The processing fee of Loan Against FD is Nil.
• It is a hassle-free loan and requires minimum documentation.
• Loan against FD helps the depositors to avoid the option of premature withdrawal.

However, there might be a chance that the alternative credit option is offering lower rates with better facilities. In that case, individuals must compare and decide on the credit option.