SBI Fixed Deposit Account: Interest Rates, Investment Limits, Tenure, Other Details
State Bank of India or SBIÂ offers a wide range of deposit schemes in the personal banking segment. Fixed deposit (FD) scheme, one of such product offered by bank, provides assured returns. In a SBI FD account, depositor can park lump sum amount and also avail features like choice of interest payout and liquidity through overdraft (OD) or premature withdrawal, noted the lender on its website- sbi.co.in. The lender last revised its FD interest rates with effect from May 9, 2019.Â
Here are 10 things to know about SBI's fixed deposit (FD) account:
1. The minimum investment limit in case of SBI FD account is Rs 1,000. There is no maximum limit on the investment, according to SBI.
2. For SBI FD schemes, the tenure ranges between 7 days to 10 years.
3. The interest is payable monthly or quarterly depending on the option selected at the time of account opening. However, in case of monthly interest payment, the interest is paid at a discounted rate, according to SBI.
4. Senior citizens get 0.25 per cent extra interest rate for FDs above Rs 10,000, noted SBI on its website.
5. SBI currently provides interest rates to the tune of 5.75-6.75 per cent to the general public on fixed deposit (FD) up to Rs 2 crore. The following FD interest rates are applicable on deposits below Rs. 2 crore with effect from May 9, 2019, according to bank's website:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 7 days to 45 days | 5.75 | 6.25 |
| 46 days to 179 days | 6.25 | 6.75 |
| 180 days to 210 days | 6.35 | 6.85 |
| 211 days to less than 1 year | 6.4 | 6.9 |
| 1 year to less than 2 year | 7 | 7.5 |
| 2 years to less than 3 years | 6.75 | 7.25 |
| 3 years to less than 5 years | 6.7 | 7.2 |
| 5 years and up to 10 years | 6.6 | 7.1 |
6. The maturity value is automatically reinvested in the same deposit scheme if no instruction has been provided beforehand in case of SBI fixed deposit.
7. Interest earned on FD is taxable. If the customer does not submit the relevant Form 15G/15H, TDS (Tax deducted at source)Â is deducted, according to SBI.
8. The scheme provides the facility to convert the fixed deposit to special fixed deposit and vice-versa at same FD rates.
9. At the end of tenure, premature withdrawal is allowed with penalty. For fixed deposit (FD) up to Rs 5 lakh, the penalty for premature withdrawal is 0.50 per cent for all tenors. For fixed deposits above Rs. 5 lakh but below Rs 1 crore, applicable penalty is 1 per cent for all tenors.
10. Nomination and loan facilities are available in case of a SBI FD account.
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