All About SBI Fixed Deposits

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State Bank of India is a public sector multinational banking and financial services company of India. The bank is headquartered in Mumbai, Maharashtra and has an asset valuation of 30.72 trillion as of FY2016 -2017. The bank has 20% of the market share in loans and deposits among the Indian commercial banks.

sbi-fixed-deposit

State Bank of India offers FD schemes with attractive features and great returns that make them very competitive and sought after. They let your money work for you by giving you returns and by letting you save for your medium and long term goals.

SBI TERM DEPOSIT SCHEME:

The SBI Term Deposit not just helps you to save your money, it also earns for you. It has a lot of other important features and benefits which are as follows:

  • Senior citizens earn at 0.50% additional interest rate for deposit amount above Rs 10,000.
  • Minimum deposit tenure allowed is 7 days.
  • Maximum deposit tenure allowed is for 10 years.
  • Premature payment for term deposit between 5 lakhs and 1 crore is 1%.
  • Overdraft (Loan) allowed up to 90% of the principle deposit amount.
  • Interest rates can be paid at Monthly/ Quarterly or Yearly as per your requirements.
  • Monthly payouts are calculated at discounted rates.
  • Nomination facility available
  • TDS (Tax Deduction at Source) is applicable as per current rate, if Form 15G/ 15H is not submitted.
  • Term deposit can be converted to a cumulative interest payout deposit.
  • Automatic renewals
  • No premature penalty on term deposit amount up to Rs 5 lakhs, given the deposit was made for minimum 7 days.
  • Monthly interest payment option.
  • Income tax benefits under section 80C.

Interest rates fees and charges:

Deposit Amount Interest Rates
General Senior Citizen
Rs 1 crore to Rs 10 crores
180 days to 210 days 3.85% 4.35%
211 days to less than 1 year 4.00% 4.50%
1 year to 455 days 4.25% 4.75%
456 days to less than 2 years 4.25% 4.75%
2 years to less than 3 years 4.25% 4.75%
3 years to less than 5 years 4.25% 4.75%
5 years and up to 10 years 4.25% 4.75%
Rs 10 crores and above
180 days to 210 days 3.85% 4.35%
211 days to less than 1 year 4.00% 4.50%
1 year to 455 days 4.25% 4.75%
456 days to less than 2 years 4.25% 4.75%
2 years to less than 3 years 4.25% 4.75%
3 years to less than 5 years 4.25% 4.75%
5 years and up to 10 years 4.25% 4.75%

**Interest rates are subject to change as per government regulations.

Other SBI Fixed Deposit Schemes

  • SBI Tax Saving Scheme: It is a special tax saving term deposit scheme by SBI that has tax benefits under section 80C of Income Tax Act 1961. The deposit tenure is between 5 years to 10 years.
  • SBI Reinvestment Scheme: It is one of the term deposit schemes offered by SBI under which the interest payouts are made at the time of maturity only.
  • SBI MODs: It is a Multi Option Term Deposit scheme linked to the current account or savings account. The deposit in a MOD account is allowed up to a maximum of 5 years and withdrawals can be made in the multiples of 1000 only.

Fixed Deposit Vs Recurring Deposits:

Criteria Fixed Deposits Recurring Deposit
Deposit Type Lump sum Fixed amount periodically
Deposit Tenure 7 days to 10 years 6 months to 10 years
Income Tax Tax deductible at source as per depositor’s tax slab No tax deductions are made
Nomination One nominee per deposit account One nominee per deposit account.
Loan Facility Loan amount available keeping FD as collateral Loan amount available keeping RD as collateral
Eligibility Individuals (Singly or Jointly), HUFs Individuals (Singly or Jointly), HUFs, Minors
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