SBI Fixed Deposit
State Bank of India (SBI), the largest bank in the country, offers a multitude of Fixed Deposit products to its customers. SBI has products that cater to every section of society. The most significant advantage of SBI Fixed Deposits is that they are easily accessible from any part of India. The vast network of SBI branches ensures that you are not far from an SBI branch wherever you are in India. Therefore, one can say that the SBI Fixed Deposit is the most liquid of all your financial assets.
Why SBI Fixed Deposits?
Every individual must have a surplus fund to take care of activities like children's education, marriage, unforeseen medical expenses, and other business and personal commitments. SBI has fixed deposit schemes to cater to all your requirements.
SBI Fixed Deposits are preferable because of the vast reach the bank enjoys in India. All its branches are computerised, thereby making it easy for its customers to access their accounts at any time. SBI offers innovative products like the Multi-Option Deposit Scheme that come with a unique break-up facility. It provides complete liquidity while ensuring higher rates of return at the same time.
SBI Recurring Deposit schemes help to accumulate your savings in a phased manner every month. Thus, you can gradually build up your corpus to meet your future requirements.
SBI Fixed Deposits - Features and Benefits
- A variety of products to suit every family
- One of the best rates of interest offered in the country
- Additional interest payable to senior citizens
- Multi-option deposit scheme that offers liquidity as well as good returns
- Recurring deposit products to enable the gradual build-up of the corpus
- Resident Foreign Currency Deposits available
- Non-Resident Indian Deposit schemes available in Indian Rupees and Foreign Currency
- Tax Saving Schemes
- Motor Accident Claims Annuity Deposit Schemes available
- Capital Gains Deposits
- TDS if interest exceeds 10,000 in a financial year
- Facility to submit Form 15G and 15H to avoid TDS
SBI Fixed Deposits - Rate of Interest
SBI offers the best interest rates among all Indian public sector banks. SBI has three different interest rate structures for domestic term deposits depending on the amount of deposit.
Domestic Deposits
- These deposit interest rates are subject to revision at periodical intervals. Senior citizens of age 60 years and above get an additional 0.5% in the interest rate in each slab.
- The rates listed below are effective with effect from 09.05.2019 for amounts below 2 Crores. For amounts ranging from 2 Crores and above, the effective date is 22.02.2019.
Deposit Tenure | Below 2 Crores | 2 Crores to 10 Crores | Above 10 Crores |
7 days to 45 days |
5.75% |
5.75% |
5.75% |
46 days to 179 days |
6.25% |
6.25% |
6.25% |
180 days to 210 days |
6.35% |
6.35% |
6.35% |
211 days to < 1 year |
6.40% |
6.40% |
6.40% |
1 year to < 2 years |
7.00% |
6.70% |
6.70% |
2 years to < 3 years |
6.75% |
6.75% |
6.75% |
3 years to < 5 years |
6.70% |
6.80% |
6.80% |
5 years and up to 10 years |
6.60% |
6.85% |
6.85% |
- Premature withdrawal of bulk deposits of 2 Crores and above attracts a penalty of 1%
- The above rates of interest apply to Non-Resident Ordinary Deposits as well
Non-Resident External Deposits - w.e.f. 09.05.2019
Deposit Tenure | Below 2 Crores | 2 Crores to 10 Crores | Above 10 Crores |
1 year to < 2 years |
7.00% |
6.70% |
6.70% |
2 years to < 3 years |
6.75% |
6.75% |
6.75% |
3 years to < 5 years |
6.70% |
6.80% |
6.80% |
5 years and up to 10 years |
6.60% |
6.85% |
6.85% |
Premature Withdrawal Conditions |
No interest if the deposit is withdrawn before one year
|
||
Penalty for premature withdrawal |
|
1% |
1% |
Applicable rate on premature withdrawal |
Contracted rate or the applicable rate for the tenure whichever is less subject to a premature withdrawal penalty. |
Foreign Currency Non-Resident Deposits - w.e.f 10.07.2019
Currency |
USD < 300,000 |
USD >= 300,000 |
GBP |
EUR |
CAD |
AUD |
JPY |
Tenure |
|||||||
1 Year |
2.84 |
2.94 |
1.30 |
0.01 |
2.10 |
1.08 |
0.02 |
>1 year and < 2 years |
2.84 |
2.94 |
1.30 |
0.01 |
2.10 |
1.08 |
0.02 |
2 years to < 3 years |
2.73 |
2.83 |
1.34 |
0.01 |
1.79 |
1.04 |
0.05 |
3 years to < 4 years |
2.72 |
2.82 |
1.35 |
0.01 |
1.74 |
1.05 |
0.05 |
4 years to < 5 years |
2.72 |
2.82 |
1.37 |
0.10 |
1.72 |
1.16 |
0.05 |
5 years |
2.76 |
2.86 |
1.40 |
0.15 |
1.73 |
1.22 |
0.05 |
Resident Foreign Currency Deposits - w.e.f.10.07.2019
Tenure | USD< 300,000 | USD => 300,000 | GBP | EUR |
1 year to < 2 years |
2.84 |
2.94 |
1.30 |
0.01 |
2 years to < 3 years |
2.73 |
2.83 |
1.34 |
0.01 |
3 years |
2.73 |
2.82 |
1.35 |
0.01 |
- For RFC deposits up to one year: Simple interest is payable
- Above one year: Interest compounded half-yearly
- Premature withdrawal before one year: No interest is payable
- After one year: Penalty of 1% applicable
SBI Fixed Deposits - Types of Deposits
SBI offers a range of deposits as follows:
SBI Tax Savings Scheme - 2006 | |
Eligibility |
Resident Indian individuals or in the capacity of Karta of HUF having PAN |
Quantum of Deposit |
Minimum of 1,000 and multiples thereof with a maximum of 1,50,000 in a year. |
Type of Account |
Special Term Deposit Account |
Tenure |
|
Rate of Interest |
As applicable to domestic time deposits |
Premature Withdrawal |
No premature withdrawal before the expiry of five years from the date of issuance. |
Loan Facility |
No loans available against this deposit |
Other Conditions |
|
Reinvestment Plan | |
Product |
Cumulative interest deposit plan where the interest is reinvested and payable along with the principal amount on the maturity. |
Quantum of Deposit |
The minimum deposit is 1,000 with no maximum limit |
Rate of Interest |
As applicable to Term Deposits |
Tenure |
Minimum of six months with a maximum of ten years |
Premature Withdrawal |
|
TDS |
Applicable as per rules |
Loan Facility |
Loan or Overdraft available up to 90% |
Other Conditions |
|
SBI Multi Option Deposit Scheme | |
Product |
Unique product where term deposits are linked to savings and current deposits. Facility to withdraw in multiples of 1,000 depending on your requirements. The balance amount in the account continues to earn interest at the contracted rates. |
Quantum of Deposit |
Minimum 10,000 and in multiples of 1,000 thereafter |
Rate of Interest |
As applicable to Term Deposits |
Tenure |
|
Premature Withdrawal |
Allowed |
TDS |
Applicable as per rules |
Loan Facility |
Available, but further withdrawals are not allowed as long as the loan is outstanding. |
Other Conditions |
|
Recurring Deposit | |
Product |
Opportunity for the depositor to save through regular monthly deposits of a fixed amount for a specific period. |
Quantum of Deposit |
|
Tenure |
The minimum tenure is 12 months while the maximum is 120 months |
Rate of Interest |
As applicable to other Term Deposits |
Loan facility |
Available up to 90% of the balance in the RD account |
Premature Withdrawal |
Allowed |
TDS |
Applicable |
Other Conditions |
|
SBI Holiday Savings Account | |
Product |
A unique saving plan formulated by SBI in association with Thomas Cook Save every month in an RD account to avail a tour package listed under the Holiday Savings Account packages arranged by Thomas Cook. |
Type of Account |
Recurring Deposit Account |
How it works |
|
Other Conditions |
|
Annuity Deposit Scheme | |
Product |
|
Quantum of Deposit |
|
Tenure |
Fixed-term of 36, 60, 84, or 120 months |
Rate of Interest |
As applicable to Term deposits |
Premature Payment |
Allowed only in the case of expiry of the depositor |
Loan Facility |
|
Other Conditions |
|
SBI Flexi Deposit Scheme | |
Product |
|
Quantum of Deposit |
Minimum instalment is 500 with the maximum number of instalments capped at 10. |
Minimum Deposit Amount |
5,000 in a financial year |
Maximum Deposit |
50,000 in a financial year |
Frequency |
Any number of times |
Tenure |
The minimum tenure is five years, and the maximum is seven years |
Rate of Interest |
As applicable to term deposits |
Premature Withdrawal |
Allowed |
TDS |
Applicable |
Loan facility |
Available |
Other Conditions |
|
Motor Accident Claims Annuity Deposit - MACAD | |
Product |
|
Eligibility |
|
Quantum of Deposit |
|
Tenure |
|
Rate of Interest |
As applicable to Term Deposits |
Premature Withdrawal |
|
TDS |
As applicable |
Loan Facility |
No loan or advance |
Other Conditions |
|
SBI CAPGAINS PLUS - Capital Gains Scheme 1988 | |
Product |
Park the proceeds of the sale of an immovable property before reinvesting in a specified asset and claim exemption of Long Term Capital Gains (LTCG) Tax. |
Eligibility |
Individuals, non-individuals, HUF, NRIs, Resident but not Ordinary Resident, and Artificial Judicial persons having capital gains taxable in India. |
Type of Account |
|
Quantum of deposit |
|
Tenure |
Not exceeding two to three years from the date of sale of original asset as detailed below:
The depositor has to declare the applicable sections in Form A |
Rate of Interest |
|
Coverage |
Metro, Urban, and Semi-urban branches |
Premature Payment |
|
Loan Facility |
No loan |
Other Conditions |
|
Resident Foreign Currency - RFC Account | |
Product |
NRIs and PIOs can park their funds in RFC account on returning to India for permanent settlement. |
Permitted Currency |
USD, Euro, and GBP |
Type of Account |
Term Deposit and Special Term Deposit |
Permissible Credits |
|
Features |
|
Tenure |
Minimum one year with a maximum of 3 years |
TDS |
As applicable |
Other Conditions |
|
FCNR (B) Accounts | |
Product |
|
Eligibility |
NRIs, PIOs, and OCIs |
Permissible Credits |
|
Type of Accounts |
Term Deposit and Special Term Deposit |
Features |
|
Tenure |
|
Tax |
Exempt from IT |
Other Conditions |
|
FCNR(B) Premium Account | |
Features |
|
Minimum Deposit |
USD 15,000 or equivalent |
Conditions |
|
NRO Tax Saving Scheme | |
Product |
Deposit scheme to avail tax benefits under Sec 80C of IT Act |
Eligibility |
|
Permissible Credits |
|
Features of TDR |
|
Features of STDR |
Same as above but interest compounded every quarter and reinvested instead of crediting to NRO A/c. |
Premature Withdrawals |
Not allowed |
TDS |
As per rules |
Loans |
No loan against NRO Tax Saving Deposits |
Documents Required for Opening SBI Fixed Deposits
- Existing SBI account holders need not provide any new documents for opening SBI Fixed Deposits.
- New SBI customers should satisfy KYC norms and product ID and address proof documents
- Minors and senior citizens should provide age proof
- NRIs, PIOs, and OCIs should provide evidence of the non-resident status
Procedure to Open SBI Fixed Deposit
SBI Fixed Deposits can be opened online as well as offline. Existing customers of SBI using internet banking facility can open FD online. Otherwise, the ideal method of opening SBI FD is to visit the branch and open the FD.
How Do You Open SBI FD Online?
You should have the internet banking or mobile banking facility of SBI to be able to open SBI FD online. The procedure is a straightforward one.
- Access the official website of SBI, onlinesbi.com and log in to your net banking account using your user ID and password.
- On the home page, click on the Deposit Schemes option
- Proceed to Term Deposits and click on the e-Fixed Deposit option
- Choose the type of FD you want and proceed further
- Select the amount from where you would like to make the payment
- Enter the principal value of your FD
- If you are a senior citizen, tick the concerned tab
- You have a choice between TDR and STDR
- Enter your deposit tenure and maturity instructions
- Go through the terms and conditions and accept them
- On submitting this information, you complete the process of opening the SBI FD online
Maturity Value Calculator
SBI has a Term Deposit Maturity Value Calculator on its website. Users have to enter the principal amount, the annual rate of interest, and the deposit tenure to get the interest value and maturity value instantly.
Tax Deduction at Source on Interest
The Income Tax Act stipulates that banks have to deduct income tax at source in the interest payable in a financial year is more than 40,000. (Earlier it was 10,000, but has been increased to 40,000 from this fiscal year.
Depositors can submit Form 15G or 15H (for senior citizens) to ensure that the bank does not deduct TDS. They should note to submit this form at the beginning of the financial year. It is necessary to provide the PAN details along with the Form 15G/15H. Otherwise, the bank has to deduct TDS @ 20% instead of the stipulated 10%.
SBI Fixed Deposits - Frequently Asked Questions
What is the difference between Term Deposit Receipt and Special Term Deposit Receipt in SBI?
In TDR, the interest is credited to the depositor account every quarter. Hence, it is a simple interest offering deposit. In the case of STDR, the interest is reinvested by crediting it to the principal amount, thereby ensuring its compounding every quarter.
Is there any minimum age for opening a fixed deposit with SBI?
No, there are no age requirements for opening fixed deposit accounts with SBI. However, minors should open joint accounts with their guardians.
Can you take a loan against your fixed deposit with SBI?
Yes, Loans up to 90% of the value of the fixed deposit are allowed to the deposit holders. However, specific deposit schemes like the Tax Saving Scheme and the Capital Gains Scheme do not offer loan facility.
Is it possible to open SBI deposit online?
Yes, it is possible to open SBI Fixed Deposit online if you use internet banking facility. Fixed deposits opened online can also be closed online. However, deposits opened at the branch do not have this facility.
What are the minimum and maximum tenures for an SBI fixed deposit?
The minimum permissible tenure for an SBI fixed deposit is for seven days, whereas the maximum is ten years. Deposits opened under the MACAD Scheme can be for a maximum of 18 years or 216 months.
Is it compulsory to maintain an SB A/c to have a fixed deposit in SBI?
No, it is not compulsory to have an SB A/c for opening an SBI fixed deposit. However, it is advisable to open one because it becomes easy for the branch to credit the interest or the proceeds of the FD on closure.
Is it obligatory on the bank's part to deduct TDS on interest on deposits?
Yes, the banks have to deduct TDS on interest paid on Fixed Deposits if the interest payable on these deposits exceeds 40,000 in a financial year. However, customers can opt to submit Form 15G or 15H to ensure that the bank does not deduct TDS. Under such circumstances, it is the customer's responsibility to pay tax on the interest if applicable.
Is loan available on deposits in the name of the minor?
If the deposit is in joint names with the guardian, the guardian can apply for a loan against the fixed deposit. He/she should undertake that the loan is for the benefit of the minor and not for any other purpose.
What is the TDS rate on NRO Fixed deposits in SBI?
If the interest income on the NRO fixed deposit is less than or equal to 1 Crore, the TDS rate is 30.90%. If the interest is more than 1 Crore, the tax is payable @ 34.608%. The tax on NRO FDs is on an annual basis or on maturity whichever occurs first.
Can we get the deposit maturity proceeds in cash?
Usually, banks do not pay the deposit maturity proceeds in cash. They credit the SB account or issue DD. Nowadays, they use electronic modes of transfer. However, the rules permit payment of fixed deposit receipts in cash if the maturity proceeds do not exceed 20,000.