Due to its reliability, flexibility and high returns, fixed deposit (FD) is one of India’s most common investments. In addition to being taxable, net returns are less than other forms of investment, such as stock and mutual funds. Nevertheless, because of their simple liquidity and stability, fixed deposits-or term deposits as they are often called-are common.
For a fixed time, you can deposit a lump sum into the State Bank of India FD and receive a steady interest income. Usually, terms range between 7 days and 10 years, but they range from one bank to the next. The sum you can invest in an FD does not have a cap.
Visit the nearest branch of SBI and fill out the appropriate form in order to make an investment. If you are a current account holder with the bank, you may need to apply your KYC documents.
SBI TAX SAVINGS SCHEME, 2006
A tax saver fixed deposit produced for the sole purpose of obtaining a deduction under section 80C of the Income Tax Act is provided by the State Bank of India. Under this deposit, the minimum investment required is 1000 and the limit is 1.5 lakhs per year. SBI provides an interest rate of 6.85 on the fixed deposits of tax savers. Deposits must be made in multiples of Rs. 1000.
By visiting the bank’s official website or visiting a nearby bank branch and filling out the necessary form, you can invest in SBI Tax Saver Fixed Deposits. Your KYC documents such as the Aadhar card, PAN card, and passport and so on might also need to be submitted.
SBI FD INTEREST RATES – SPECIAL FEATURES
- FD tenures for the SBI vary from 7 days to 10 years.
- The minimum amount of deposit required to open an FD in SBI is Rs. 1000, but the maximum deposit is not limited.
- A 0.25 percent extra interest rate on an amount reaching Rs. 10,000 can be used by senior citizens.
- SBI provides a nominating facility such that the depositor may assign the maturity number to his / her family members or spouse.
- The interest payment may be chosen, viz.As per your requirement, monthly / quarterly / calendar quarter base.
- The deposit includes an auto-renewal service.
- Loan against FD facility is also available.
- When Form 15G/15H is not submitted, TDS is deducted at the prevailing rate at source.
SBI TERM WISE FIXED DEPOSIT INTEREST RATES
Parking your surplus sum in FDs is one of the most reliable ways to invest your cash and make a return. Parking your surplus sum in FDs is one of the most reliable ways to invest your cash and make a return.
Short-term Deposits: For an SBI FD with tenure ranging from 7 days to 365 days, the interest rate offered is from 4.50% p.a. to 5.80% p.a. As they have a period of less than 1 year, these deposits are known as short term deposits. For senior citizens, short term SBI FD rates range from 5.00% p.a. to 6.30% p.a.
Medium-term Deposits: Medium-term fixed deposits have a period of between 1 year and 5 years. The interest on these deposits offered by the bank varies from 5.80 percent p.a.-6.25 percent p.a.
Long-term Deposits: The tenure of these deposits ranges from 5 years to 10 years and provides a 6.10 percent interest rate. For such FDs, senior citizens can make use of 6.60 per cent p.a.a.
Types of SBI Fixed Deposit Scheme
1) SBI Tax Saving Scheme:
- As the name suggests, this scheme is specifically built to save on tax for resident individuals and HUFs and can allow significant returns on their fixed deposit.
- Pursuant to Section 80C of the Income Tax Act, 1961, the depositor may enjoy tax benefits on his deposit.
- Nomination facility is available.
- Loans of up to 90 percent against the FD may be taken.
- Senior citizens will benefit from an additional interest of 0.50 percent above normal rates.
- Resident Indians and Karta for a HUF can open this account if they have a valid PAN number
2) Reinvestment Plan
- Under this scheme, the interest is paid only upon maturity.
- Nomination and loan facility is available.
- The auto-renewal facility on the deposit is available.
- Senior citizens enjoy extra rates of 0.50 percent above regular rates.
- Resident Indians aged 18 and above are authorised.
3) SBI Multi Option Deposit Scheme
- This account is connected to a savings or current account from which many Rs. 1000 accounts can be withdrawn.
- Interest is paid only upon maturity.
- Nomination and loan facility of up to 90% on the deposit is available.
- You may withdraw funds as needed from this account.
- The withdrawals should be Rs. 1000 in multiples.
- Indians, HUFs and associations are eligible for Resident and Non-Resident.
4) Money Multiplier Plan
- This scheme allows the depositor to connect to their savings account a fixed deposit account, thus offering a higher interest rate.
- Loan and nomination facility available.
- Interest is paid only at the time of maturity.
- Senior citizens can take advantage of extra interest rates of 0.50 percent above normal rates.
- Eligible for resident Indians, organisations, HUFS, trust and collaboration firms.
5) Regular Fixed Deposit
- The depositor will make an investment in the deposit under this scheme to gain higher returns.
- Interest is paid only upon maturity.
- Nomination facility is available.
- Extra interest of 0.50% is available for senior citizens.
- Auto-renewal facility is available.
6) Flexi Deposit Scheme
- This scheme is more like revolving deposits in which the depositor can make deposits over a month at any time rather than a single fixed deposit.
- Deposits can be made at any time during a month and various deposit facilities are also available.
- Loan and nomination facility available
- 0.50 percent extra interest rate accessible to senior citizens.
HOW TO CALCULATE SBI FIXED DEPOSIT RATES?
The interest you receive on the deposited amount depends on a variety of players, such as the amount invested, tenure, interest rate, pace of compounding and taxes. The SBI FD calculator available on the Internet is one of the easiest ways to measure the interest received on your FD. It is the most hassle-free way of interest calculation. You just need the specifics of your SBI FD account, such as the amount of investment, interest rate and tenure.
STATE BANK OF INDIA FIXED DEPOSIT PREMATURE WITHDRAWAL PENALTY
One of the most versatile methods for investment is FDs. If you find yourself in need of cash, you can withdraw the entire deposit sum at any point during the term.
Like most other banks, the State Bank of India applies a penalty for premature withdrawal of deposits. This penalty is expressed as a drop in the interest rate. In the event of early withdrawal, interest shall be paid at a reduced rate for the time during which the balance remains with the bank.
