Fixed Deposit

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.

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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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Benefits of Fixed Deposit Calculator

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Fixed Deposit is the safer investment option in comparison to other investment schemes. A fixed deposit account is your investment account where you can keep your money and earn interest on the duration of the deposit. It is among the most popular choices of investment in India as it offers low risk and higher interest (as compared to savings account) on your deposited money. However, fixed interest rate is paid at the end of maturity period and it varies from bank to bank. Usually longer deposit period yields higher interest rate on a fixed deposit account.

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Benefits of a fixed deposit account:

  • You get guaranteed returns of your deposited money as your investment does not depend upon fluctuating market rates unlike other investment schemes such as mutual funds, stocks, etc.
  • Investing your money into a fixed deposit gives you more benefits than depositing money in a savings account.
  • The fixed deposit account helps you in cases of financial urgency. In such cases, some banks also offer you loan against your fixed deposit account. Investor can get a loan of up to 90% of your fixed deposit amount.
  • Interest is paid upon maturity annually or monthly depending on the term you opt for.
  • You can secure your future by saving money into fixed deposit and earning reasonable interest on it.
  • Fixed deposits come with flexible tenure and you can choose the tenure of your investment ranging from 10 days to 10 years.

Fixed Deposit Calculator

Fixed Deposit Calculator is an online tool which helps the depositor in calculating the returns and interest earned on a Fixed Deposit account upon maturity. It is a virtual calculator where the depositor can input their basic FD account details such as FD tenure, deposited amount, rate of interest to calculate the returns from their Fixed Deposit.

How Fixed Deposit Calculator works

The FD Calculator is a very user friendly tool as it eliminates the need of manual calculations. Computer tools such as spreadsheets also fail to provide the ease and convenience offered by a fixed deposit calculator. User has to input the amount which they have invested into their fixed deposit account, tenure of the deposit and rate of interest offered on their FD.

Once all the details have been entered, then the user can click ‘calculate’ in order to get the instant and accurate maturity amount.

Benefits:

  • FD calculator can help you in comparing the returns of various banks. Before investing into any Fixed Deposit, you can do a survey about which bank offers highest returns.
  • Accurate and quick calculations help the user to plan their investments beforehand. FD calculator helps the most in case of deposit renewals as the interest rate offered is fixed but they can differ upon maturity.
  • New interest rates which are offered at the end the term can be higher or lower depending upon the particular bank. FD calculator can be used to calculate this interest rate. It helps the depositor to decide whether he/she should continue with the same fixed deposit scheme or switch to another by comparing their respective returns upon maturity.
  • Manual calculations are more prone to errors and it gets more complicated when it you have to compare between various schemes.

How the interest is calculated

Compound interest is offered on Fixed Deposit and it can be calculated as:

A = P (1 + r/n) (nt)

A= Total returns earned upon maturity of the Fixed Deposit
P= Principal deposited amount
r= Annual interest rate
n= Number of times when interest is compounded every year
t= tenure of your Fixed deposit