A steady source of income is essential to keep the life going on without disruption, in lieu of the unexpected moments it has to offer. Fixed deposits (FD) are safe investments that come into use in times of need along with an added value. Government owned State bank of India offers some of the most sought after Fixed Deposit schemes in the country. The features and interest rates of SBI are very competitive, thus making them some of the best savings solutions. With its numerous fixed deposit schemes, state bank of India extents financial investment services to different investors with different financial needs. These Fixed Deposit plans by the State bank of India are one of the most preferred products due to SBI’s superior customer service. The State bank of India provides these plans for fixed deposits of 6 months to 10 years to individuals, Hindu Unified Family, private or public limited company, partnership firm or society. The procedure and terms for opening a fixed deposit account with state bank of India are the same as that for the savings account in the case of individuals.
SBI FD Interest Rates
|FD Tenure||Interest Rate (in %)|
|Regular Citizens||Senior Citizens|
|7 days to 45 days||5.50||6.00|
|46 days to 179 days||6.50||7.00|
|180 days to 210 days||6.50||7.00|
|211 days to less than 1 year||6.50||7.00|
|1 year to 455 days||6.90||7.40|
|456 days to less than 2 years||6.75||7.25|
|2 years to less than 3 years||6.25||6.75|
|3 years to less than 5 years||6.25||6.75|
|5 years to up to 10 years||6.25||6.75|
Note: Interest rates with effect from 29th April 2017
Different Fixed Deposit Schemes offered by SBI
State Bank of India offers various fixed deposit schemes to individuals to choose from and make a wise decision for their term deposit as per their personal needs. Some of these SBI Fixed deposit schemes are:
In SBI Reinvestment Fixed Deposit Scheme, an investor can deposit amount for a minimum period of 6 months to a maximum period of 10 years. The rate of interest paid for this scheme is compounded and paid at the time of term deposit maturity. When withdrawals are made from the fixed amount which is less than Rs.5 lakhs, then State Bank of India does not charge any penalty provided the amount has been with the bank for a minimum of 7 days. SBI charges a penalty of 1% per annum for withdrawals that are made for term deposits above Rs.5 lakhs but less than Rs.1 crore.
SBI Tax Savings Scheme, 2006
SBI Tax Saving Scheme is another popular FD scheme that is availed widely by the investors. To avail this scheme of SBI fixed deposit, an individual must be either a resident of India or is the Karta for a HUF. Also, he must hold a valid PAN number. For SBI Tax Saving scheme, minimum deposit money is Rs. 1,000 and the maximum is Rs 1.5 lakhs in a year. The minimum period fixed for this term deposit is 5 years and the maximum fixed tenure for this term deposit is 10 years. SBI Tax Saving interest rate for deposits, as specified by the State Bank of India is 7.25% (for senior citizens). The deposit under SBI Tax Savings Scheme cannot be dismissed in the first 5 year period.
Must Read- Where to Invest for Saving Tax in 2015-16
SBI MODS Plan
SBI MODS term deposit plan is an overdraft facility offered by the State Bank of India. The SBI MODS scheme can only be availed in combination with an SBI savings bank account. State Bank of India has fixed the minimum amount for deposit in SBI MODS Plan as Rs. 10,000 for a period from 1 year to 5 years. In this plan, deposit holder can withdrawals in multiples of Rs. 1,000 via cheques.
Recurring Deposit scheme by State Bank of India offers account holders to deposit minimum monthly deposits of Rs 100 with no upper limits in their RD accounts. Other than that, State Bank of India provides overdraft as well as loan facilities of up to 90% of the deposited amount. The RD accounts can be opened for a minimum of 1 year period to a maximum of 10 years period.
Annuity Deposit Scheme
Annuity Deposit Scheme allows a person to deposit a lump sum amount and start getting equated monthly installments of the deposited amount and the interest on the reducing amount, which starts after a month of making the deposit. The minimum amount to be deposited for Annuity Deposit Scheme is Rs 25,000. Deposit holders can choose to open the accounts for periods of 3, 5, 7 or 10 years.
SBI Flexi Deposit Scheme
SBI Flexi Deposit scheme is similar to the Recurring Deposit scheme and the only difference is that it allows account holders to deposit different amounts instead of one fixed amount. In SBI Flexi Deposit scheme, an account holder has to deposit a minimum amount of Rs 5,000 which can be made at any time during a month with no limit on the number of deposits each month. Deposit holders can choose the tenure from minimum 5 years to a maximum of 7 years. The pre-mature withdrawal is 0.50% lower than the rate applicable for the time the deposit has remained within the Bank.
Factors that affect Fixed Deposit Rates of Interest
There are numerous factors that affect a rate of interest of fixed deposit. Know about these factors before investing your money in a fixed deposit plan to ensure you get most of the benefits:
- Policies of RBI deduce the credit control and flow of funds within the country, eventually altering the interest rates on all banking instruments, including fixed deposits.
- Recession brings along economic slowdown and the purchasing power of people attenuates significantly, hence producing a rise in fixed deposit rates of interest.
- During Inflation, in order to compensate for the interest losses of lent loans, higher fixed deposit rates offered.
- Growing economy brings along high credit demand for which banks are compelled to offer attractive interest rates on FDs.
SBI FD Rates Calculator
Paisa Bazaar offers SBI fixed deposit rates calculator to help depositors in calculating returns on fixed deposit which are also known as maturity benefits. Paisa bazaar’s online financial tool to calculate SBI FD interest rates is a virtual calculator which allows the users to enter basic details of FD such as deposit amount, deposit period and interest rate and then automatically calculates returns on maturity.
Fixed deposit rate calculator by Paisabazaar efficiently makes the user save time, money as well as efforts. It offers real-time calculations of maturity benefits which are useful in making a comparison and choosing a best suited fixed deposit scheme.
How to use FD Rates Calculator at PaisaBazaar?
Users of Paisa Bazaar’s FD Rates calculator for computing SBI term deposit interest rate have to mention the following details in the relevant fields of the calculator:
- Deposit Amount – In this section, users have to mention the amount they want to invest in a particular deposit scheme of State Bank of India.
- Rate of Interest: In the second section, a used would need to specify the rate of return offered on a chosen term deposit scheme
- Deposit Tenure – This last section is about the period for which an amount is likely to be invested by the investor. The user would have to mention the duration in either months or years.
Once the user enters these details, the online calculator tool would automatically calculate the maturity benefit and display the accurate result instantly in the right-hand side column.