State Bank of India is by far the most popular bank used by all sections of society in urban as well as rural India. State Bank of India is not only the biggest public sector banks but is also one with a wide branch network, making it easily accessible. State Bank of India offers fixed deposit accounts along with its core banking operations and services.
Unlike a large number of private banks and non banking financial companies, State Bank of India has a stipulated a small amount of Rs. 1000 as the minimum amount needed to open a fixed deposit account. Users opening a fixed deposit account with State Bank of India have the option to choose the payment mechanism of interest from monthly, quarterly or calendar quarter basis. Interest rate once fixed is does not change irrespective of change in the rate thereafter.
The bank allows individuals to take loans or overdraft facility on their fixed deposit accounts. Loans and OD facility is available for as high as 90% of the fixed deposit account. Senior citizens opening a fixed deposit account with State Bank of India get an additional 0.25% on the stipulated rate of interest. Nomination facility is available and recommended for all fixed deposit accounts in State Bank of India.
State Bank of India offers lucrative interest rates for fixed deposit account holders. The rate of interest for investments below Rs. 1 Crore ranges from 7.5% for 7 day to 90 days tenure to 9% for 5 years and up to 10 years. Members of SBI Staff and SBI pensioners receive an additional interest rate of 1.00% above the applicable rates. Senior citizens above the age of 60 years receive an additional 0.25% above the stipulated interest rate.
Features of State Bank of India Fixed Deposits:
State Bank of India offers a wide range of tenure period ranging from 7 days to 10 years making FD accounts suitable for all sections of society. Loan and overdraft facility can be availed without any minimum time limit from the opening of the fixed deposit. Loan can be availed as soon as the ext working day from the day of the opening of a fixed deposit account. Interest is paid on monthly intervals on discounted rate or at a calendar quarterly basis as selected by the individual investor at the time of opening of a fixed deposit account.
State Bank of India deducts TDS when the interest paid or accrued for the investor exceeds the maximum limit of Rs. 10,000 in one financial year. TDS would not be deducted in case the individual submits form 15G or 15H as per their individual case. State Bank of India offers the individual fixed deposit account holder the flexibility to renew the FD. Automatic renewals take place in case no maturity instructions are given by the investor.
Premature Withdrawal of SBI Fixed Deposits:
State Bank of India charges a premature withdrawal penalty to the tune of 0.50% per annum for all fixed deposits below Rs. 15 Lakhs. In case of fixed deposit accounts higher than Rs. 15 Lakhs that have remained with the bank for a minimum period of 7 days, no premature withdrawal penalty is levied.