SBI FD: Benefits And Latest Interest Rates Compared

SBI Savings Account

Some of the strongest investing avenues present on the market are SBI fixed deposits. The bank gives its investors the possibility of investing their deposits in as many as six forms of fixed deposit schemes. These schemes bear attractive interest rates with SBI FD, thus expanding substantial returns for the investors. SBI Fixed Deposits, combined with predictable returns, provide optimum stability. SBI FD is perfect for you if you’re just looking for these two things, i.e. full security of your investments, as well as good but assured returns. If you are looking to create a certain amount for a potential necessity or merely to optimise returns, select the cumulative method of interest payment option.

The non-cumulative option will fit the better for you if you are looking for regular interest income. If you are 60 or older, we will recommend that you apply for SBI We Care, which is a special FD scheme for senior citizens. You would get an additional interest rate of 0.80 per cent over the regular fixed deposit interest rates. However, to enjoy the perks of this scheme you must invest for a lock-in period of 5 years. It is essential, before opening a fixed deposit account with the State Bank of India (SBI), to ensure that one suits the eligibility requirements and documentation. SBI also offers the service to take a loan against FD, in addition to providing decent FD rates. In conditions of financial uncertainty, this comes in useful. The bank gives the possibility of taking out a loan of up to 90% of the overall FD balance. The bank uses the FD to reimburse the balance if the depositor is unable to repay the loan. 

Key Benefits of SBI FD

Understanding the essential features is utterly imperative, before investing in SBI fixed deposit schemes.

  • Tenure starts from 7 days up to 10 years
  • Investors can avail tax benefits as per Section 80C by considering the Special FD scheme
  • Investors can start investing from a minimum amount of Rs.1000 with no upper limit
  • Bulk deposit is available for investment above Rs. 2 crore
  • Senior citizens aged 60 years or more can get an additional benefit of 0.5% interest rates
  • SBI provides 0.3 per cent additional interest for deposits of 5 years and above along with the current 0.5 per cent to senior citizens, i.e. 0.8 per cent to elderly people with a period of 5 years or above (in the SBI Wecare deposit scheme)
  • Fixed-rate of interest with assured returns
  • Get an insurance cover up to Rs. 5 lakh
  • Monthly and quarterly interest payout
  • Loan and overdraft facility is available for all the investors
  • Premature withdrawal is available

Types of SBI FD Schemes

Below listed are the 5 different types of SBI FD

  • Term Deposit
  • Tax Saving Scheme
  • FD Reinvestment Plan
  • SBI MODS
  • Annuity Deposit Scheme
  • SBI Wecare Deposit Scheme

Applicable TDS

TDS or Tax Deducted at Source is a method for the Indian Government to raise a tax. 

  • TDS is applicable for the interest earned over Rs. 40,000 for regular citizens and Rs, 50,000 for senior citizens
  • TDS is deducted at 10 per cent (20 per cent if the PAN Card is not submitted)
  • TDS deductions are only applicable for Indian residents

SBI FD Interest Rates for Domestic Deposits for up to Rs. 2 Crore

Regular CitizensSenior CitizensTenure
2.90%3.40%7 days to 45 days
3.90%4.40%46 days to 179 days
4.40%4.90%180 days to 210 days
4.40%4.90%211 days to less than 1 year
4.90%5.40%1 year to less than 2 years
5.10%5.60%2 years to less than 3 years
5.30%5.80%3 years to less than 5 years
5.40%6.20%5 years and up to 10 years

Note: The above SBI FD rates are in operation from 10 September 2020 and are subject to change without forewarning at any time. An extra 1 per cent interest rate is provided to SBI staff members and SBI pensioners. SBI pensioners earn 0.50 per cent (Senior Citizen Benefit) + 1.00 per cent (Staff Benefit), i.e. an additional FD interest rate of 1.50 per cent.

SBI FD Interest Rates for Domestic Deposits for Rs. 2 Crore or above

Regular CitizensSenior CitizensTenure
2.90%3.40%7 days to 45 days
2.90%3.40%46 days to 179 days
2.90%3.40%180 days to 210 days
2.90%3.40%211 days to less than 1 year
2.90%3.40%1 year to less than 2 years
3.00%3.50%2 years to less than 3 years
3.00%3.50%3 years to less than 5 years
3.00%3.50%5 years and up to 10 years

Note: For Domestic Deposits for Rs. 2 Crore or above the interest rates are in operation from 27th May 2020.

Interest Rates for SBI Tax Saving FD

Regular CitizensSenior CitizensTenure
5.40%6.20%5 to 10 years

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