SBI Fixed Deposit

SBI offers multiple fixed deposits accounts for various tenures. The SBI FD interest rates are different and depend on the type FD. The interest rate on SBI FDs is higher in their savings account. One can invest in SBI FDs through both online and offline modes with just a minimum investment of INR 1,000.

SBI Bank Fixed Deposit Schemes

Following are the types of SBI Bank fixed deposit schemes:

1. SBI Regular FD Account
2. SBI Amrit Kalash Deposit
3. SBI Sarvottam’ (Non-Callable) Term Deposit Account
4. SBI Annuity Deposit Account
5. SBI MOD Account
6. SBI Tax Savings Scheme
7. SBI Special Term Deposit – Reinvestment Plan
8. Motor Accident Claims Annuity (Term) Deposit Account (MACAD)
9. Floating Rate Bulk Term Deposit (FRBTD)

SBI Regular FD Account

• Tenure: The tenure ranges between 7 days to 10 years
• Minimum Deposit Amount: INR 1,000
• Maximum Deposit Amount: No Limit
• Interest Payment: Depositors can choose between monthly or quarterly, or calendar quarters based on their requirements. Also, monthly interest payments are at discounted rates.
• Loan: Depositors can avail of a loan or overdraft up to 90% of their deposit amount.
• Nomination Facility: Available
• Premature Withdrawals: SBI FD allows premature withdrawals, however, with a penalty.
• TDS: SBI deducts TDS at applicable rates in case Form 15G/15H is not submitted.
• Flexibility: SBI FD offers flexibility to depositors to convert from regular interest payout to cumulative interest payout and vice versa.
• Renewals: SBI FD provides auto-renewals in case there isn’t any instruction given while opening the account.
• Guaranteed Returns: SBI Regular Fixed Deposit Account allows depositors to park lump sum amounts and get guaranteed returns.

SBI Amrit Kalash

• Eligibility: Domestic retail term deposits including NRI rupee term deposits.
• SBI Fixed Deposit Interest Rate: 7.10% p.a. for normal citizen and 7.60% for senior citizens, staff and staff pensioner are eligible for additional interest rate.
• Deposit Tenure: 400 days
• Premature Withdrawal: As applicable to retail depositors.
• Scheme Close Date: 31st March 2023
• Interest Payout: monthly, quarterly, annually and at maturity.
• Loan Facility: Available

SBI Sarvottam (Non-callable) Term Deposit Account

• Minimum Deposit Duration: 1 Year and 2 Years only
• Minimum Deposit Amount: INR 1,000 and in multiples of INR 100 after that.
• Maximum Deposit Amount: 15 Lakhs to less than 2 Cr for retail user, 2 Cr to 5 Cr for bulk depositors.
• SBI interest rates on FD: The rate of interest is 0.30% and 0.40% higher than regular fixed deposit for 1 year and 2 year tenure respectively. Senior Citizens/ Staff/ Staff Senior Citizens are eligible for additional interest rate over non-callable deposit rates.
• Premature Withdrawals: Not Allowed
• Loan/Overdraft: Depositors can avail a loan or overdraft up to 75% of the balance amount.
• Nomination Facility: Available
• Transferable: The account can be transferred from one SBI branch to the other easily.
• Mode of Holding: Single or joint account
• Eligibility: Resident individuals, including minors, can open the SBI Sarvottam deposit account.

SBI Annuity Deposit Scheme

SBI Annuity Deposit Scheme or SBI Monthly Income Scheme, enables depositors to deposit a lump sum amount to receive equated monthly instalments. The EMIs comprise a part of the principal amount as well as interest on the reducing principal amount. The interest is compounded quarterly. However, the amount is discounted to the monthly value.

• Minimum Deposit Duration: 36/60/84 or 120 months.
• Minimum Deposit Amount: INR 1,000 and in multiples of INR 100 after that.
• Maximum Deposit Amount: No limit
• SBI interest rates on FD: The rate of interest is the same as a regular fixed deposit; however, the interest gets compounded quarterly. Also, for SBI staff and SBI pensioners, interest is 1% higher than the applicable rate. SBI senior citizen FD rates are 0.5% higher than the applicable interest rate.
• Annuity Payment: On the anniversary date of the month following the month of deposit. However, in case the date is non-existent, i.e. 29th or 30th or 31st, the payment would then be on the 1st of next month.
• Premature Withdrawals: Available, however, with a penalty.
• Loan/Overdraft: Depositors can avail a loan or overdraft up to 75% of the balance amount.
• Nomination Facility: Available
• Transferable: The account can be transferred from one SBI branch to the other easily.
• Mode of Holding: Single or joint account
• Eligibility: Resident individuals, including minors, can open the SBI Annuity Deposit Scheme.

SBI Multi Option Deposit (MOD) Scheme

SBI Multi Option Deposit Scheme (MODS) allows linking fixed deposit accounts to current account or savings account. Unlike regular fixed deposits, MODS allows depositors to withdraw money in multiples of INR 1,000. The remaining amount will continue to earn interest.

• Minimum Deposit Period: 1 year
• Maximum Deposit Period: 5 years
• Minimum Deposit Amount: INR 10,000 and in multiples of INR 1,000 thereafter.
• Maximum Deposit Amount: No limit
• Interest: The rate of interest is the same as a regular fixed deposit.
• Loan: Depositors can avail loan on their deposit amount. However, future withdrawals are not permitted in case of a loan against the account is taken.
• Nomination Facility: Available
• TDS: SBI deducts TDS at applicable rates.
• Transferable: The account can be transferred from one SBI branch to the other easily.
• Premature Closure: Available, however, with a penalty.
• Auto Sweep: Available. However, the auto sweep of INR 10,000 takes place only when the minimum balance amount in a savings account or current account is INR 35,000.
• Eligibility: Resident Indians (single or joint), Minor, Company, Firm, Local Bodies, any government department and HUFs can open SBI multi-option deposit scheme.

SBI Tax Savings Scheme

• Minimum Deposit Period: 5 years
• Maximum Deposit Period: 10 years
• Minimum Deposit Amount: INR 1,000 and in multiples of INR 100 thereafter.
• Maximum Deposit Amount: INR 1,50,000 per year
• Interest Payment: The interest payment terms are similar to that of a regular fixed deposit. However, interest for SBI staff and SBI pensioners is 1% higher than the applicable rate. SBI senior citizen FD rates are 0.5% higher than the applicable interest rate.
• Loan: No loan facility available during the lock-in period of 5 years.
• Nomination Facility: Available
• Taxation: Deposits up to INR 1,50,000 in a year qualify for Income Tax deduction under Section 80 C of the Income Tax Act. However, SBI deducts TDS at applicable rates. Also, the depositor has to submit Form 15G/H to get an exemption.
• Transferable: The account can be transferred from one SBI branch to the other easily.
• Joint Account: A joint account can be opened by two adults or by an adult and a minor.
• Eligibility: Resident Indians and HUFs have a PAN Card and can open Tax Savings Scheme.

SBI Special Term Deposit

The SBI Special Term deposit scheme is a variant of a fixed deposit. This scheme pays the interest amount upon maturity. It doesn’t give interest on a regular basis.

• Minimum Deposit Period: 6 months
• Maximum Deposit Period: 10 years
• Minimum Deposit Amount: INR 1,000 in a financial year.
• Maximum Deposit Amount: No limit.
• Penalty for payment default: INR 50 in a financial year.
• Interest: Compounded quarterly and is paid only upon maturity.
• Loan: Available
• Nomination Facility: Available
• Transferable: The account can be transferred from one SBI branch to the other easily.
• Mode of Holding: Single or joint account
• Eligibility: Resident individuals, including minors, Karta of HUF, firm, company, local bodies and any government department, can open the SBI Sepcial Term Deposit Scheme.

SBI Motor Accident Claims Annuity (Term) Deposit Account (MACAD)

• Eligibility- Individuals including Minors (through guardian) in single name
• Deposit Tenure: 36 to 216 months
• Minimum Investment Amount: minimum monthly annuity payment of Rs. 1,000/
• SBI Fixed Deposit Interest Rate: Prevailing interest rate will be applicable as per the tenure. Maturity period exceeding 120 months or as decided by the Bank from time to time.
• Premature Withdrawal: Annuity payment/ Premature closure payment/ Part lump sum payment will be made only through linked MACT claims SB account.
• Loan or Advance: No loan or advance shall be allowed against the Annuity deposit.

Floating Interest Rates Bulk Term Deposits

Floating Interest Rates Bulk Term Deposits have interest rates that are linked to an external benchmark (i.e Repo Rate). Changes in the Repo Rate and/or spread during the currency of deposit will affect the interest rate.

• Eligibility- Individual, non-individual, minor along with guardian.
• Minimum investment duration of 91 days
• Maximum investment duration of 3 years
• Minimum investment amount of Rs. 2 Crores and in multiples of Rs.1,00,000
• No limit on maximum investment amount
• Premature withdrawal allowed along with a penalty of 1%. No interest will be paid if amount withdrawn within 91 days of initial deposit 
• Loan or advance available up to 90% of the principal amount. SBI charges an additional interest rate on loan of 1.5% above the floating rate interest.

Key Features of State Bank of India Fixed Deposit Schemes

• Premature withdrawal: All SBI bank FDs can be withdrawn prematurely except for tax saving FDs. SBI charges a 0.5%-1% penalty on the interest for premature withdrawals. However, their penalty is subject to change as per SBI terms and conditions.
• Nomination facility: SBI FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their SBI FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all SBI bank deposits. The scheme covers all SBI bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in an SBI FD once it has commenced. However, they can open a fresh SBI FD with the new amount.

How to Open an SBI Bank FD Deposit Account?

One can open an SBI Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open an SBI Bank FD account through internet banking:

• Log in to the SBI NetBanking account.
• Under the ‘Deposit Scheme’ tab, select the ‘Term Deposits’ option.
• Choose the type of fixed deposit and click on ‘Proceed’ to continue.
• Provide all the deposit details, nominee information and maturity instructions.
• Accept the ‘Terms and Conditions’ upon reading them.
• Next, click on ‘Submit’ to complete the fixed deposit opening process.

Through Mobile App

SBI Bank App

The following steps will guide in opening an FD account through SBI Bank Mobile App:

• Download the SBI Bank App and log in.
• Select the Fixed Deposits or Term Deposits option to proceed.
• Provide all the deposit details, nominee information and maturity instructions.
• Accept the ‘Terms and Conditions’ upon reading them.
• Next, click on ‘Submit’ to complete the fixed deposit opening process.

Offline SBI Bank FD Opening

To open an SBI Bank FD account offline, one has to visit the nearest SBI Bank branch. Fill the SBI Bank FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, SBI bank will provide an FD receipt.

Documents Required to Open State Bank of India FD

Following are the documents required to open an FD in SBI are:

• FD account opening form
• Four passport size photographs
• Identity Proof as per KYC norms. (PAN Card, Aadhaar Card, Voter ID Card, Passport, Driving License)
• Address proof as per KYC norms. (PAN Card, Aadhaar Card, Voter ID Card, Passport, Driving License)
• Age Proof (Birth Certificate, Matriculation Certificate)
• Pan Card or a declaration in Form No. 60 or 61 of the Income Tax Act
• Bank Account details like account number, IFSC code and branch
• Any other documents as applicable for partnership, proprietorship, company, HUF, association or institution.

Eligibility to Open State Bank of India FD

Also, only eligible investors can invest in SBI Bank FD. The eligibility criteria to invest in SBI Bank FD is:

• Resident Individuals
• Partnership Firms
• Public and Private Limited companies
• Societies
• Trusts
• HUFs
• NRIs and PIOs (Non-Resident Indians and Persons of Indian Origin)

How to Renew FD in SBI Online?

You can now renew your SBI FD online. With SBI, you can choose to renew the total matured amount or renew only the principal in the fixed deposit account. If you choose the latter, the interest will be credited to the linked bank account. 
Following are the steps to renew SBI fixed deposit online:

• First login to your SBI account.
• Under the ‘Click Requests’ section, select the ‘Deposit Renewal’ option. 
• On the deposit renewal page, select a maturity option.
• Next, select the deposit account that you wish to renew. 
• To continue, click on ‘Proceed’. 
• Select the renewal options – Cumulative or Non-cumulative option for the deposit type.
• Next, select the account type – Ordinary or NRO.
• Next, enter the FD renewal period in months and days. Click on Submit to complete your renewal request. 
• On the Confirmation page, you can verify the FD renewal details.

Is FD Interest Taxable?

Only investment in SBI bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other SBI bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from SBI FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to TDS of 10% if the income from SBI FD exceeds INR 40,000 per annum. For senior citizens, the TDS threshold limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to SBI Bank, then the TDS rate will be 20%.

How is SBI FD interest calculated?

Interest on SBI FD is calculated using both simple and compound interest formulas.

The simple interest formula is SI = P x R x T/ 100, where P is the principal amount, R is the interest rate, and T is the tenure of the FD.

The compound interest formula is A = P (1+r/n) ^ (n * t), where A is the maturity amount, P is the principal amount, r is the interest, n is the number of compounding periods, and t is the tenure of the investment.

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