SBI FD Interest Rates 2019: SBI Fixed Deposit Scheme Interest Rate

SBI FD Interest Rates 2019: SBI Fixed Deposit Scheme Interest Rate

SBI is one of the renowned & largest banks in India that offers multiple fixed deposit options.

Their different FD schemes include:

  • SBI regular term deposit
  • SBI tax savings scheme
  • Reinvestment plan
  • SBI MODS

Our today’s post is specifically designed to provide you with SBI FD interest rates complete details

In this post, we have covered the following content

  • SBI FD Interest rates
  • Benefits of opening FD account in SBI
  • Document needed to open a fixed deposit account in SBI
  • Pre-mature withdrawal
  • Loans against Fixed Deposit
  • Factor affecting Fixed Deposit Interest Rate
  • What is SBI FD Calculator?
  • Best Investment Options In India

So, without much ado, let’s get going

SBI FD Interest Rates

SBI FD Interest Rates

SBI FD Interest Rates June 2019

Tenure FD Rates Senior Citizen FD Rates
7 days to 45 days 5.75% 6.25%
46 days to 179 days 6.25% 6.75%
180 days to 210 days 6.35% 6.85%
211 days to 364 days 6.40% 6.90%
1 year to 1 year 364 days 6.80% 7.30%
2 years to 2 years 364 days 6.80% 7.30%
3 years to 4 years 364 days 6.80% 7.30%
5 years to 10 years 6.85% 7.35%

SBI provides several fixed deposit avenues to their customers to park the surplus for a fixed duration. SBI fixed deposit offer high-interest rates on fixed deposit as compared to their saving.

If you want to open a fixed deposit at lucrative interest, SBI fixed deposit is a good option.

During the tenure of fixed deposit customers is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit.

What are the Benefits of Opening FD account in SBI?

Let us learn what the benefits of opening saving account with SEBI are

  • Nomination facility is available
  • Additional interest of 0.25 is available to the senior citizens
  • Auto-Renewal facility is available
  • Earn high returns on the money deposited
  • Interest on deposit is paid only at the time of the maturity
  • Axis Bank Fixed Deposit Rates

What are the Documents required to open a Fixed Deposit Account in SBI?

  • PAN Card
  • Declaration in Form No. 60 or 61 as per the Income Tax Act.”

FD in SBI-Premature Withdrawal

It is to be noted that penal provision for premature closure on SBI FD are subject to change from time to time and may also vary with deposit schemes.

Premature closure of Term Deposit with SBI is along with the lower interest rate of 1% for deposits above Rs. 5 lakh and up to Rs. 1 crore than the contracted rate.

Loan against Fixed Deposit in SEBI

State bank of India provides loans up to 90% against its own fixed deposit. The SBI will not grant you loan against the fixed deposit of other banks.

The rate at which SBI offer loan to its customer against FD is 6.75% to 7.85%

Maximum loan tenure is restricted up to the maximum tenure of the FD.

Let us understand it better with an example

Illustration – Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in SBI. The borrower later decided to take the loan against his FD. The bank has approved a credit limit of 90% against his FD at a 10% interest rate.

Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.

Factor affecting Fixed Deposit Interest Rate

  • Policies framed by Reserve Bank of India RBI – As per the RBI guidelines; the change in cash reserve ratio and repo rate affects all banking instruments including fixed deposit.
  • Recession Recession results in a decrease in the interest of the fixed deposit. During the recession, RBI is bound to release the funds in the market which it achieves by lowering the rates on cash reserve of the bank and hence, providing them with high liquidity.
    As a result of low credit demand and high liquidity, bank decrease the fixed deposit rates
  • Inflation Talking about inflation, it has a positive impact on the fixed deposit interest rate. Bank customarily fixes the interest rate on fixed deposit that is higher than the inflation rates. Hence, FD
  • The current state of the economy Yes, Economic factor of the country plays a critical role in deciding the fixed interest rate. It is true that in a booming industry people are willing to pursue larger credits to fulfill their personal and business needs.

During high credit call, the bank offers higher interest to gather funds through the fixed deposit.

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Let us learn about SBI FD Calculator

What is SBI FD Calculator?

SBI FD calculator helps you to compute the maturity value of the deposited value of your deposited amount at the interest rate offered compounded at quarterly.

Fixed deposit amount, rate of interest of fixed deposit, deposit tenure & compounding frequency of the interest together decide the maturity amount of FD at the end of the tenure

  • Deposit amount– it is the amount deposited by the customers in SBI.
  • Rate of interest – the rate charged by a bank on your fixed deposit. SBI proffers a higher rate of interest on fixed deposit on longer tenure and lowers interest rate deposit of less than a year.

The highest interest rate offered by SBI is 6.85% for deposit amount below rs 1 crore corresponding to a deposit tenure of years.

  • Period of deposit– Bank gives low interest for short duration Fixed Deposit and high interest for long-duration fixed deposit.

Bank offer rate of 5.75% for 7 days FD and a rate of 6.85% for 10 years Fixed Deposit

Interest Compounding Frequency

This decides the frequency at which interest is compounded. It can be of monthly, quarterly, half-yearly or annual frequency

Let us understand it with the help of an illustration.

Illustration – Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in SBI. The borrower later decided to take a loan against his FD. The bank has approved a credit limit of 90% against his FD at a 10% interest rate.

Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.

SBI Fixed Deposit Schemes

SBI Tax Saving Schemes

Description

  • The scheme is designed to help the resident individuals and Hindu undivided family to save their money on tax and derive effective profits and returns on their fixed deposit
  • Tax advantages on deposit under section 80C of the income tax act, 1961
  • Nomination facility is available
  • Loan assistance up to 90% is available on the deposit
  • Interest on deposit is paid at the time of maturity
  • The extra interest of 0.25% is given to senior citizens
  • Post Office Saving Schemes

Who is eligible?

Resident Indians, Karta for a HUF with a valid PAN number

SBI Reinvestment Plan

  • This scheme is a form of fixed deposit under which interest is paid at the time of maturity
  • Interest is paid at the time of maturity
  • Nomination facility is available
  • Loan facility up to 90% is available on the deposit
  • Availability of auto-renewal facility
  • An additional advantage of 0.25% is payable to senior citizens

Who is eligible?

Resident Indians of 18 years of age and above

SBI Multi Option Deposit Scheme

Description:

  • The account linked to the saving or current account in which you can take multiples of 1000 from your MOD account as per your preference
  • Interest on deposit is paid only at the time of maturity’
  • Nomination facility is available
  • Loan facility up to 90% is available
  • Deposit made under scheme are completely liquid
  • Withdrawl in multiples of rupees 1000

Who is eligible?

Resident Indians, non-resident Indians, Hindu undivided family, companies and organizations

SBI Regular Fixed Deposit

Description

  • Under this scheme, the depositors are permitted to make an investment in the deposit to earn higher and attractive returns along with flexibility and security
  • Interest on deposit is paid at the time of maturity
  • Nomination facility is available
  • Extra 0…25% interest is payable to senior citizens on fixed deposit
  • Auto Renewal facility is available
  • Earn higher returns on the money deposited

Who is eligible?

Resident Indians, private or public limited company, Hindu undivided family, trust, and a partnership firm.

SBI Money Multiplier Plan

Description:

  • It allows the depositor to link the Fixed deposit account to the saving account.
  • Loan facility up to 90 percent is available
  • Nomination facility is available
  • Extra 0.25% is payable to the senior citizens

Who is eligible?

Resident Indians, private or public limited company, Hindu undivided family, trust, and a partnership firm.

SBI Flexi Deposit Scheme

Description:

This scheme is alike recurring deposits where a depositor can make multiple deposits anytime during a month instead of doing a single fixed deposit.

  • Deposits can be done anytime during a month and any number of times
  • Nomination facility available
  • Interest on deposit is compounded quarterly
  • Loan facility up to 90 percent is available on the deposit
  • The extra interest of 0.25 percent payable to the senior citizens

Who is eligible?

Resident Indians, private or public limited company, Hindu undivided family, trust and partnership firm.

Frequently Asked Question on SBI Fixed Deposit

  • Q. What is the highest fixed deposit rate for SBI?
    Ans. The maximum interest is 6.85% on SBI Fixed Deposit.
  • Q. Are there any special rates for senior citizens?
    Ans. Yes, senior citizens receive a higher rate of interest on their deposit as compared to FD rates. The rate of average FD is around 5.75% to 6.85% whereas senior citizens FD are in the range of 6.25% to 7.35%.
  • Q. What is the tenure range for SBI fixed Deposit?
    Ans. The tenure ranges from 7 to 10 years.
  • Q. Is there any minimum amount that is required for opening a fixed deposit?
    Ans. The minimum deposit amount required to start a fixed deposit is 1000.
  • Q. Can I deposit additional amount to my existing Fixed Deposit
    Ans. No, you cannot deposit additional amount to your fixed deposit as per the policy you are only allowed to deposit the amount just once.
  • Q. What is the eligibility criteria for opening an FD account in SBI?
    Ans. All residents’ individuals, HUFs, NRIs, and Firms including minors are eligible to start a fixed deposit account.
  • Q. Is it possible to alter the tenure of my existing fixed deposit?
    Ans. No, it is not possible to change the tenure selected during the account was opened. However, you can terminate your existing fixed deposit account and can request to open a new account with a desired tenure of your preference.
  • Q. What are the implications of opening an FD bank account without having PAN?
    Ans. Following are the implications for the customers opening an FD account with SBI without their PAN card
  • TDS will be deducted at the rate of 20% as against 10% under section 206AA.
  • NO TDS credit from the Income Tax department.
  • NO TDS certificate will be issued.
  • Form 15G/H and other exemption certificates will be considered as invalid and penal TDS will apply

Final words

Howdy Readers,

I hope you find this article about “SBI Fixed Deposit Interest Rates” of great help. If you like this, please share it with others.

Any suggestion, view or doubts are highly welcome on this post.

Stay tuned for another update.

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