SBI recently revised the interest rates offered on FDs, increasing the rates across all tenures. At present, the highest rate of interest provided on SBI FDs for individuals is 6.75% p.a, while the highest rate of return offered to senior citizens is 7.25% p.a. There are various advantages of opening an FD with SBI:
- SBI FDs offer competitive industry rates
- Flexible tenure options
- Higher rate of interest for senior citizens
- Different interest payout options such as monthly, quarterly, etc
The revised Interest rates per annum for Regular & Senior Citizens with effect from 28 March 2018 are as follows:
|Tenure||Regular FD Interest Rates (p.a)||Senior Citizen FD Interest Rates (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 2 years||6.90%|
|2 years to less than 3 years||6.60%||7.10%|
|3 years to less than 5 years||6.70%||7.20%|
|5 years to 10 years||6.75%||7.25%|
*The above interest rates are for investments less than Rs.1 crore
Now, Close Your SBI FD Online Easily
State Bank of India (SBI) customers can easily close their Fixed Deposit (FD) account online before maturity. The bank recently took to social media and even posted a video on Twitter to create awareness about how to preclose an FD online.
This is applicable to customers holding ETDR/STDR e-term deposits.
How to Close an SBI FD Online
- Log on to the website
- Choose the FD account and then tap ‘close account prematurely’
- A list of all the FDs you hold with the bank will be displayed. Choose the one you want to close and tap ‘proceed’
- Confirm details and mention the reason for closing your FD
- Type in the password that is sent to your registered mobile number and confirm the transaction
All customers will receive an alert once their FDs are closed and their bank account will be credited with the FD amount. It is advisable to initiate the closure between 8.00 a.m. to 8.00 p.m. for immediate closure.
Types of State Bank of India FDs
- SBI Tax Saving Scheme: These are FDs that come with a tax benefit. Customers who invest in this type of FD will become eligible for tax benefits under Section 80C of the Income Tax Act, 1961. These FDs have to be held for a minimum of 5 years and the funds cannot be withdrawn prematurely before the completion of this tenure. It is also important to note that no loan or overdraft can be taken against these tax saver deposits. The minimum deposit amount under this slab is Rs.1000, while the upper limit for investments is Rs.1,50,000 p.a. For details on interest rates refer to the table above.
- Reinvestment Plan: This type of term deposit is best suited for those who want to gain the maximum out out their FD and take advantage of the compound interest factor. Here, interest will not be paid at regular intervals but only at the time of maturity of the deposit. The minimum amount that can be invested is Rs.1000, while there is no ceiling limit. These types of deposits will have to be held for a minimum of 6 months and the maximum tenure is 10 years. Some of features include premature withdrawal, loan/overdraft facility, nomination and auto renewal facility.
- SBI MODS: SBI also offers customers the option to invest in Multi Option Deposit Schemes. These types of term accounts are usually linked with the bank savings or current account. The highlight of this deposit is that money can be withdrawn at any point of time. The remaining balance in your account will continue to earn interest as usual. The minimum amount that has to be invested under this scheme is Rs.10,000, while the tenure range extends from 1 year to a maximum of 5 years.
- Annuity Deposit Scheme: This is a type of deposit where the account holder makes a deposit of a certain lump sum amount, on which he/she is entitled to receive money in the form of income. Money will be paid in the form of Equated Monthly Installments (EMIs) along with interest that is earned. The deposit made by the customer must be a minimum of Rs.25,000. For more information on the interest rates offered, please refer to the interest table above.
- SBI flexi Deposit Scheme: This is a type of deposit account where, instead of paying a lump sum, the customer will be allowed to make deposits at regular internals. In other words, an investor can pump in money into the scheme as and when it is convenient for him/her. The minimum tenure for this type of deposit is 5 years while the maximum is 7 years. The minimum investment amount is Rs.5000, while the upper limit is Rs.50,000 in a particular financial year.
How to calculate SBI fixed deposit interest rate
Before making a decision to invest in an FD, it is always wise to calculate the maturity value that you will get. To compute this amount, there are various factors that need to be considered. First, let us take a look at the various factors influencing maturity amount.
Factors affecting maturity amount:
- The amount/principal invested
- Rate of interest
- Tenure of deposit
- Interest computation frequency
Key Information before Opening a Fixed Deposit
|Eligibility to Open a FD||
|Benefits of a SBI FD||