State Bank of India (SBI) is a leading public sector bank in India that offers a wide range of financial services to its customers. With over 24,000 branches in India and abroad, SBI has become the go-to bank for many people looking to manage their finances.
One of the most popular investment options offered by SBI is Fixed Deposits (FDs). Fixed Deposits are considered to be one of the safest investment options available, as they offer a guaranteed return on investment. SBI offers a range of FD options with different tenures and interest rates to suit the diverse needs of its customers.
SBI FD Interest Rates
SBI’s FD scheme offers a range of tenors and interest rates, catering to the varying needs of investors. As of February 15, 2023, SBI’s FD interest rates for domestic deposits of less than Rs 2 crore are quite competitive.
|Tenure||SBI Bank FD Rates for Senior citizens||SBI Bank FD Rates for the General public|
|Tenors||Interest rates for the General public||Interest rates for senior citizens|
|7 days to 45 days||3.00%||3.50%|
|46 days to 179 days||4.50%||5.00%|
|180 days to 210 days||5.25%||5.75%|
|211 days to less than 1 year||5.75%||6.25%|
|1 year to less than 2 years||6.80%||7.30%|
|2 years to less than 3 years||7.00%||7.50%|
|3 years to less than 5 years||6.50%||7.00%|
|5 years and up to 10 years||6.50%||7.50%*|
|400 days (Amrit Kalash)||7.10%||7.60%|
SBI Tax Saver Deposit (SBI Tax Savings Scheme, 2006)
SBI Tax Saver Deposit is a tax-saving investment option offered by SBI, with a tenure of 5 to 10 years and interest rates of 6.50% p.a. for regular customers and 7.50% p.a. for senior citizens.
|Tenure||Interest rate for regular customers||Interest rate for senior citizens|
|5 – 10 years||6.50%||7.50%|
Types of SBI Fixed Deposit Schemes
The following are the different types of fixed deposit schemes offered by SBI:
- SBI ‘Sarvottam’ (Non-Callable) Term Deposit
SBI ‘Sarvottam’ is a non-callable term deposit scheme that offers guaranteed returns and is ideal for customers who want to invest for a fixed period. The minimum deposit amount is Rs.1 crore, and the tenure ranges from 7 days to 10 years. The interest rates are higher than regular fixed deposits, and the interest is payable at maturity.
- SBI Annuity Deposit Scheme
The SBI Annuity Deposit Scheme is a unique fixed deposit scheme that provides a regular monthly income to the depositor. The depositor can choose the amount of monthly income they want to receive, and the deposit amount is calculated accordingly. The minimum deposit amount is Rs.25,000, and the tenure ranges from 36 months to 120 months. The interest rate is the same as regular fixed deposits.
- SBI Multi Option Deposit Scheme (MODS)
SBI Multi Option Deposit Scheme (MODS) is a flexible fixed deposit scheme that allows customers to withdraw money from their fixed deposit account as and when required. The customer can create multiple fixed deposits with a minimum deposit amount of Rs.10,000 and a maximum deposit amount of Rs.1 crore. The tenure ranges from 1 year to 5 years, and the interest rate is the same as regular fixed deposits.
- SBI Tax Saver Deposit (SBI Tax Savings Scheme, 2006)
SBI Tax Saver Deposit is a tax-saving fixed deposit scheme that allows the customer to claim a deduction under section 80C of the Income Tax Act. The minimum deposit amount is Rs.1,000, and the maximum deposit amount is Rs.1.5 lakh. The tenure is 5 years, and the interest rate is the same as regular fixed deposits.
- Motor Accident Claims Annuity (Term) Deposit Account (MACAD)
The Motor Accident Claims Annuity (Term) Deposit Account (MACAD) is a fixed deposit scheme that is designed for customers who receive a lump sum payment as compensation for a motor accident. The deposit amount is invested in the MACAD scheme, which provides a regular monthly income to the customer for a fixed period. The minimum deposit amount is Rs.1 lakh, and the tenure ranges from 1 year to 10 years. The interest rate is the same as regular fixed deposits.
Loan Against Fixed Deposit
SBI Fixed Deposits are a popular investment option among individuals looking for a safe and secure way to grow their savings. One of the major benefits of investing in an SBI FD is that you can avail of loans against their FDs. These loans offer several advantages, including a high loan amount of up to 90% of the value of the deposit, no processing fees or penalties, and a low-interest rate of just 1% above the relative time deposit rate.
Moreover, you can choose between demand and overdraft loans, and the repayment period is fixed based on the borrower’s repayment capacity. Additionally, the interest on the FD continues to accumulate even after taking the loan, which means that the borrower can earn interest on their savings while also repaying the borrowed amount.
How to Invest in SBI FD?
Investing in SBI FD is a simple and hassle-free process. Here are the steps you need to follow to invest in SBI FD:
- Visit an SBI branch: To invest in SBI FD, you need to visit the nearest SBI branch. You can also open an SBI FD account online through the SBI website or the SBI mobile app.
- Choose the type of FD: SBI offers various types of FDs, including regular FDs, tax-saving FDs, and FDs for senior citizens. Choose the type of FD that suits your financial goals.
- Decide on the investment amount and tenure: You need to decide the investment amount and the tenure of the FD. The minimum investment amount for an SBI FD is Rs. 1,000, and the minimum tenure is seven days.
- Provide the necessary details: To open an SBI FD account, you need to provide your personal details, such as name, address, PAN card number, and contact details.
- Make the payment: Once you have provided all the necessary details, you need to make the payment for the FD. You can make the payment through net banking, debit card, or cash.
- Get the FD receipt: After making the payment, you will receive an FD receipt, which contains the details of your FD, such as the investment amount, the tenure, and the interest rate.
Documents Required to Open SBI FD Account
Here is a detailed list of the documents required to open an SBI FD account by the following categories:
Regular Citizens or Senior Citizens
To open an SBI FD account, you need to submit the following documents:
- A valid identity proof, such as an Aadhaar card, PAN card, passport, voter ID, or driving license.
- A valid address proof, such as an Aadhaar card, passport, voter ID, or driving license.
- Two passport-size photographs.
- Your PAN card or you can submit Form 60/61 if you do not have a PAN card.
- Senior citizen certificate (if applicable)
Firms, Trusts, or Companies
- A copy of the PAN card of the entity
- A copy of the Memorandum of Association (MOA) and Articles of Association (AOA)
- Board resolution or partnership deed, as applicable
- ID and address proof of all the authorized signatories
- Two passport-size photographs of all authorized signatories
- Latest audited balance sheet and profit and loss statement (for companies)
- Declaration by the authorized signatories regarding the nature of the business, source of funds, and expected annual turnover
- KYC documents of all the authorized signatories
Eligibility Criteria for SBI FD
State Bank of India offers FDs to a wide range of customers, including individuals, HUFs (Hindu Undivided Families), NRIs (Non-Resident Indians), and corporate entities. Here are the eligibility criteria for opening an SBI FD account:
- Individuals (including minors with guardians as guarantors until they attain the age of 18)
- Corporate entities, such as companies, partnership firms, and trusts.
1. What are the current SBI fixed deposit interest rates?
The interest rates offered by SBI on fixed deposits are subject to change from time to time. The latest rates can be checked on the SBI website or by visiting an SBI branch.
2. How is the interest on fixed deposits calculated?
The interest on fixed deposits is calculated on a quarterly basis. The formula used to calculate the interest is: Interest = P x R x T / (365 or 366), where P is the principal amount, R is the rate of interest, and T is the time period in days.
3. What is the minimum deposit amount for opening an SBI fixed deposit account?
The minimum deposit amount for opening an SBI fixed deposit account is Rs. 1,000.