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Save Upto Rs. 45,000 Taxes by Investing in ELSS

For opening a fixed deposit with ease, and at attractive interest rates, SBI Fixed Deposit is a good move. Let us look at the different topics covered in this article, related to Fixed Deposit:

  1. SBI FD Interest Rates for different Investment Periods
  2. SBI FD Interest Rates
  3. FD in SBI – Premature Withdrawal
  4. Loan against Fixed Deposit SBI
  5. Documents required to open Fixed Deposit Account in SBI

1. SBI FD Interest Rates for different Investment Periods

Investment period FD rates for regular deposit
FD rates for Senior Citizens
7 days to 45 days 5.25% 5.75%
46 days to 179 days 6.25% 6.75%
180 days to 210 days 6.25% 6.75%
211 days to 364 days 6.25% 6.75%
1 year 6.25% 6.75%
1 year 1 day to 1 year 364 days 6.25% 6.75%
2 years to 10 years 6.00% 6.50%

* The above rates are applicable for deposits of below Rs. 1 crore.
** Figures mentioned in the above table are subject to change without prior information.

2. SBI FD Interest Rates

SBI offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank.

The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of SBI have a higher interest rate compared to their saving deposits. Benefits of opening an FD account in SBI are:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25 percent payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

3. FD in SBI – Premature Withdrawal

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. The penal provisions for premature closure on SBI FD are subject to change from time to time and may also vary with deposit schemes.

4. Loan against Fixed Deposit SBI

SBI offers loan up to 90% of its own deposit. Note that SBI will not give you the loan against FD of any other bank. SBI offers Loan against FD at the rate of 6.25% to 7.25%

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

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 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.

5. Documents required to open Fixed Deposit Account in SBI

PAN Card or declaration in Form No. 60 or 61 as per the Income Tax Act.