State Bank of India Fixed Deposit (FD) is an investment instrument offered by SBI bank, where you can deposit surplus money for a higher rate of interest than savings accounts. SBI FD interest rates are quite competitive and are higher than the rates on their savings deposits.
SBI FD is a deposit of a fixed sum of money for a fixed period of time – which can vary anything from 7 days to 10 years in the SBI branch at a fixed interest rate known at the beginning of the investment.
SBI FD Interest Rate:
FD interest rates of SBI are determined by changes in RBI monetary policy such as repo rate, base rate, etc, the internal liquidity position of banks, economic conditions, and the level of credit demand.
What is the current SBI FD Interest Rate?
Current FD interest rates in SBI are tabulated below. Here FD rates range is given for different deposit tenure from 7 days – 10 years:
Revised SBI FD Interest Rates On Retail Domestic term deposits (Below Rs. 2 crores) interest rates: (All figures in % per annum)
| Bank Name | Tenors | Rates For Public | Rates for Senior Citizens | As on Date |
|---|---|---|---|---|
| SBI | 7 days to 45 days | 3.5 | 4 | 2024-09-09 |
| SBI | 46 days to 179 days | 5.5 | 6 | 2024-09-09 |
| SBI | 180 days to 210 days | 6.25 | 6.75 | 2024-09-09 |
| SBI | 211 days to less than 1 year | 6.5 | 7 | 2024-09-09 |
| SBI | 1 year to <2 year | 6.8 | 7.3 | 2024-09-09 |
| SBI | 2 years to <3 years | 7 | 7.5 | 2024-09-09 |
| SBI | 3 years to <5 years | 6.75 | 7.25 | 2024-09-09 |
| SBI | 5 years to 10 years | 6.5 | 7.5 | 2024-09-09 |
The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.50%).
The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.
FD interest rates of SBI according to deposit period:
FD is a deposit of a fixed sum of money for a fixed period of time – which can vary anything from a few days to a few years – at a fixed interest rate known at the beginning of the investment.
Depending on the deposit period or tenure, these FDs are further categorised as short-term, medium-term, and long-term deposits.
Short-term FD: For an SBI FD with tenure ranging from 7 days to 365 days, the interest rate offered is slightly lower. These deposits are known as short term deposits as they have a tenure of less than 1 year.
Medium-term FD: Medium-term FDs have their tenures ranging from more than 1 year to less than 5 years.
Long-term FD: This deposit’s tenure ranges from 5 years to 10 years and offers a higher interest rate.
You may check the updated SBI Interest rate on FD at SBI official website here.
How is the SBI FD rate of interest calculated?
FD interest rates of SBI are determined by changes in RBI monetary policy such as repo rate, base rate, etc, the internal liquidity position of banks, economic conditions, and the level of credit demand.
The interest you earn on your deposited amount in FD depends on a lot of factors such as the invested amount, tenure for the deposit, rate of interest, and compounding frequency.
One of the best ways to calculate the interest earned on your SBI FD is using the SBI FD calculator available over the internet. It is the most hassle-free way of calculating interest.
You may Calculate the SBI FD Interest rate by using: SBI FD Calculator
This FD Calculator for SBI requires some data like – your principal deposit amount, rate of interest, period (in the number of months), and interest compounding frequency. After calculation, you will get the maturity amount after the maturity period and effective yield in %.
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Information SBI FD Interest Rates:
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Table of Contents |
What is an SBI FD Account?
State Bank of India Fixed Deposit (FD) is an investment instrument offered by SBI bank, where you can deposit surplus money for a higher rate of interest than savings accounts. The depositor just needs to deposit the amount at the time of opening the account and choose a tenure that seems feasible to them.
SBI FD interest rates are quite competitive and are higher than the rates on their savings deposits.
SBI FD Features:
- Minimum Deposit: Rs 1000.
- Maximum Deposit: No Limit
- Tenure: SBI offers Fixed Deposit in flexible tenures ranging from 7 days to 10 years.
- Payment of Interest:
- Interest at Monthly/ Quarterly/ Calendar quarter basis as per your requirement.
- Payment of Monthly interest will be at a discounted rate. Interest will be paid at the contracted rate irrespective of the change in the rates thereafter.
- Senior Citizens get a 0.25% extra interest rate for the amount above Rs 10,000/-.
- Premature Withdrawal: Available.
- Nomination facility: Available
- TDS: TDS at the prevalent rate is deducted at source if Form 15G/15H not submitted.
Premature Withdrawal of SBI FD:
The premature withdrawal facility is available in the SBI FD account with some terms, like:
- For Retail Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be 0.50% (all tenors).
- For Retail Term Deposits above Rs 5.00 lacs but below Rs 1 crore, the applicable penalty will be 1% (all tenors).
- The interest shall be 0.50% or 1% below the rate applicable at the time of Deposits for the period Deposit remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower.
- However, no interest will be paid on Deposits that remain for a period of fewer than 7 days.
Advantages and Disadvantages of SBI FD:
Advantages of SBI Fixed Deposit (FD) Account:
- Interest rates on SBI FD: Interest rates on FDs are fixed when you open the deposit and the rate depends on the term that you wish to hold it for. The interest rate offered on fixed deposits by SBI is higher than that on the savings account. It is also a safe form of investment where returns are guaranteed.
- Secure investment: A fixed deposit in SBI offers guaranteed returns. Unlike market-led investments where returns fluctuate over time, the returns on an FD are fixed when you open the account. Even if interest rates fall after you open a fixed deposit, you will continue to receive the interest decided at the start. SBI FDs are considered much safer than investments in other assets like equity.
- Return on investment: Your return on an SBI fixed deposit will depend on the interest rate and the type of deposit you choose. You can opt for a monthly or quarterly pay-out of interest or the reinvestment option, which will give you the benefit of compounding. You can calculate your return of your SBI FD by using the above SBI Fixed Deposit (FD) Calculator.
- Flexible Tenures: SBI Bank offers Fixed Deposit in flexible tenures ranging from 7 days to 10 years.
- Loan against FD: While FDs are fixed for an agreed tenure, you can take a loan against it when you need funds. SBI offers loans against FD in the form of an overdraft, and you can get up to 90% of your FD amount. The benefit is that your FD continues to earn interest; you don’t have to prematurely withdraw your SBI FD and end up paying a penalty.
Disadvantages of SBI Fixed Deposit (FD) Account:
While SBI Fixed Deposits offer various advantages in terms of guaranteed returns, they also have a few disadvantages, including:
- Low returns: While FD returns are guaranteed, they are also low as compared to other short-term market-linked investments.
- Liquidity: Withdrawing your FD before the date of maturity leads to a penalty charge. You may also get a lower interest on the total investment when you break your FD.
For Retail Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be 0.50% (all tenors). For Retail Term Deposits above Rs 5.00 lacs but below Rs 1 crore, the applicable penalty will be 1% (all tenors).
Types of SBI Fixed Deposits:
SBI Tax Saving Scheme:
- As the name suggests, this scheme is specially designed for resident individuals and HUFs to save on the tax and can make substantial returns on their fixed deposits.
- The depositor can enjoy tax benefits on their deposit under Section 80C of the Income Tax Act, 1961
- A nomination facility is available
- Loans up to 90% can be taken against the FD
- Senior citizens can avail of 0.50% extra interest over regular rates
- Resident Indians and Karta for a HUF can open this account if they have a valid PAN number
Reinvestment Plan:
- Under this scheme, the interest is paid only upon maturity
- Nomination and loan facility is available
- Auto-renewal facility is available on the deposit
- Senior Citizens get 0.50% extra rates over regular rates
- Resident Indians aged 18 years and above are allowed
SBI Multi Option Deposit Scheme:
- This account is linked to the savings or current account from which one can withdraw multiples of Rs. 1000 account
- Interest is paid only upon maturity
- Nomination and loan facility of up to 90% on the deposit is available
- You can withdraw funds from this account as you need
- The withdrawals should be in multiples of Rs. 1000
- Resident and Non-Resident Indians, HUFs, and organizations are eligible
Money Multiplier Plan:
- This plan enables the depositor to link a fixed deposit account to their savings account, hence giving a higher rate of interest.
- Loan and nomination facility available
- Interest is paid only at the time of maturity
- Senior citizens can avail of 0.50% extra interest rates over regular rates
- Resident Indians, organizations, HUFS, trust, and partnership firms are eligible
Regular Fixed Deposit
- Under this scheme, the depositor can make an investment into the deposit to earn higher returns
- Interest is paid only upon maturity
- A nomination facility is available
- The extra interest of 0.50% is available for senior citizens
- Auto-renewal facility is available
Flexi Deposit Scheme
- This scheme is more like recurring deposits in which the depositor can make deposits anytime during a month instead of a single fixed deposit
- One can make deposits anytime during a month and multiple deposits facilities also available
- Loan and nomination facility available
- Extra 0.50% interest rate available to senior citizens
How to check SBI FD maturity value?
FD is a deposit of a fixed sum of money for a fixed period of time – which can vary anything from a few days to a few years – at a fixed interest rate known at the beginning of the investment.
The maturity amount of Fixed Deposit invested in SBI bank for a specified period can be calculated by using the SBI FD calculator available over the internet.
The SBI FD Calculator for SBI FD available here requires some data like – your principal deposit amount, rate of interest, period (in the number of months), and interest compounding frequency. After calculation, you will get the maturity amount after the maturity period and effective yield in %.
