Know SBI Fixed Deposit Types, Rates, Benefits and Eligibility

Know SBI Fixed Deposit Types, Rates, Benefits and Eligibility

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State Bank of India offers a variety of fixed deposits or term deposits to cater to the need of the customers. SBI is the most trusted FD providers in India, as fixed deposits are seen as the most ideal way of saving and investment. A fixed deposit scheme, provided by banks and non-banking institutions is an investment scheme where you can earn high returns on your investments at a fixed rate of return. The interest rates on fixed deposit are determined by as per the RBI policy on Repo and Base rate.

Types of FD offered by SBI

Different types of fixed deposit schemes offered by SBI are as follows:-

    • SBI Term Deposit– This type of deposit is called term deposit because a person has the flexibility to choose maturity date. An investor can choose a maturity date anywhere between 7-10 years and he/she will only have to invest a minimum of Rs 1000. The SBI term deposit has an option of early withdrawal and loan against FD. 

 

  • SBI Tax Saving Scheme, 2006– Most of the FD’s comes with tax saving scheme and this is one of them. If you invest your money under this scheme then you are eligible for enjoying tax benefits under Section 80C of income tax, 1961. Investment tenure is fixed for five years and it does not have the facility of pre withdrawal and loan against FD. 

 

  • SBI Multi Option Deposit Scheme– In this FD, your current account or saving account is linked to a multi-option deposit scheme. The best thing about this scheme is that you can withdraw money partially at any time and you will be the same interest on the remaining amount. A minimum of Rs 10,000 has to be deposited in SBI multi-option deposit scheme.
  • Reinvestment Plan– If you are looking for maximum benefits then you should invest in this one. The interest rates are provided on the maturity of the FD, instead of providing interest on regular intervals. The FD comes with a tenure of six months to a maximum of 10 years and you can invest as low as Rs 1000. Facilities like loan or overdraft facility, premature withdrawal, automatic renewal and nomination.
  • SBI Annuity Deposit Scheme– An investor can pay the money in equal monthly instalments. Initially, a lump sum amount is deposited and then EMIs are made. A minimum of Rs 5000 and maximum of Rs 50,000 can be deposited for a tenure of 5-7 years.   

Interest Rate of SBI

Here is the list of interest rates provided by SBI who invest below Rs 2 Crore:-

Tenure General Public Senior Citizen
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 less than 12 months 4.40% 4.90%
12 months to less than 24 months 4.90% 5.40%
2 years to less than 3 years 5.10% 5.60%
3 years to less than 5 years 5.30% 5.80%
5 years and up to 10 years 5.40% 6.20%

Note: The interest rates mentioned in the table are effective September 10, 2020.

Features of SBI FD scheme

State Bank of India has multiple benefits and features

  • Investors can earn a payment of interest at Monthly/Quarterly/Calendar quarter basis as per your requirement
  • If you opt for monthly interest payments that are done at a discounted rate.
  • Senior Citizens gets an extra interest rate of 0.25 percent when you invest more than Rs 10,000
  • Fixed deposit tenure is for a minimum of 7 days and maximum 10 years.
  • A minimum deposit of Rs.1000 is required and there is no limit for maximum. 
  • Has a facility of pre withdrawal, nomination, automatic renewal and loan against FD.

Eligibility criteria to invest in Fixed Deposit of SBI

A person investing in fixed deposit should satisfy the give characteristics:- 

  • Indian resident 
  • NRIs with NRE/NRO account
  • Minors can invest jointly with parent or guardian as co-signatories
  • Partnership firms
  • Educational and charitable institutes
  • Hindu undivided family members
  • Societies, clubs and agencies
  • Sole proprietorship business

Documents Required

To avail the facility you need to submit the following documents:-

  • Aadhaar Card
  • Driving License
  • Passport
  • NREGA Card
  • Voter’s ID card
  • Permanent Account Number (PAN) Card

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