Best fixed deposit schemes from SBI

Most people do not venture into FDs because of the fear that when they have a sudden need for money, they may not be able to access it due to the rigidness of the scheme. Many banks now consider these aspects and design fixed deposit product that addresses all your concerns. When banking is moving to highly customer friendly ground, never let your money just sit in a savings account that offers very less interest. Let’s see here how the Fixed Deposit schemes offered by State Bank of India can help you in achieving your financial goals.

About SBI

State Bank of India is the largest financial institution in India. It is a government-owned corporation and a multinational financial institution, which has become synonymous with the word ‘trust’.  For any Indian, SBI would be a name that comes first to mind whenever he thinks of investment options.

How Fixed Deposit Schemes of SBI helps you?

There are several types of fixed deposit schemes offered by SBI. In Case of SBI FD Rates, Each one has its own features in terms of interest rates and returns. Read More

For Parents

If you want to save for the future of your children, a fixed deposit can be the ideal kind of investment. SBI offers junior savings plan that are built to suit exactly the needs of parents. You will not have to worry about education funds once your child grows up. You can keep adding to the deposited amount through roll over facilities. As you keep adding to the deposit amount the rate of interest also increases considerably. You can further link the interest earned from the FD to a savings account. The interest earnings can take care of your additional expenditure or become another savings option for your child.

For the Retired Community

Fixed Deposit is a great way to plan your retirement. If you plan smartly and put away a certain amount of money throughout your employment years it will come in handy during retirement.  If you do not work for a company that gives pension, investing in Fixed Deposit is an ideal retirement plan. By the time you retire the money that you have saved as Fixed Deposit will earn enough interest to take care of your monthly expenditure. You can spend the rest of your retired life with peace of mind with the monthly interest gaining from your FD.

Middle aged Professionals

Professionals can take advantage of both short term and long term Fixed Deposit schemes offered by SBI. Investing in FD not only offers you higher returns, but helps you for your long term and short term financial goals like purchase of property, children’s education and marriage.

The best way to maximize the benefits of FD is to choose a longer tenure. Also one should allow the interest to be accumulated in their account, which is a sure shot way of increasing your savings systematically.

Fixed Deposit schemes offered by SBI

Tenure	General Interest Rates (w.e.f. 18.02.2014)	Interest Rate for Senior Citizens (w.e.f. 18.02.2014)
7 days to 90 days	7.5	7.5
91 days to 179 days	7.5	7.5
180 days to 210 days	7.0	7.0
211 days to less than 1 year	7.5	7.5
1 year to less than 2 years	9.0	9.25
2 years to less than 3 years	9.0	9.25
3 years to less than 5 years	8.75	9.0
5 years and up to 10 years	8.50	8.75

BankBazaar.com is the best platform to understand the FD schemes offered by SBI and the various benefits associated with it.

All About SBI FD Rates

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.

SBI FD Rates:

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.