FDs are risk-free investment tools as they are not market-linked. They are very popular investment portfolios, in fact, over mutual funds, stocks, and insurance. You can also get income tax benefits up to INR 1.5 lakhs by investing in FD for 5 years. These benefits customers will get under section 80C. The rate of interest offered by SBI bank is the highest as compared to other banks. If you hold a FD in any other bank, say Cosmos Bank, then the Cosmos Bank FD Rates for Senior Citizens are comparatively lower.
Features of SBI Fixed Deposit
Mentioned below are the features of SBI Fixed Deposit:
- The minimum period of deposit is 7 days
- The maximum period is 10 Years in the case of fixed deposit
- The nomination facility is available to individuals only
- Transfer of fixed deposit is allowed at all branches
- The minimum amount for a fixed deposit is INR 1,000.
- There is no upper limit for the amount of deposit.
- Interest on a Term Deposit is paid to the depositor on every quarter from the issue date or at the time of maturity together with the principal.
- Interest may also be paid at monthly, half-yearly, or yearly intervals on request from the depositor in case of Fixed Deposits for 12 months and above.
- It can be availed at all branches
- A deposit of INR 2 crores or more is classified as a bulk deposit
- The depositor can submit Form 15G/15H to avail exemption from tax deduction as per IT Rules. Also, TDS is applicable as per Income Tax Rules.
SBI Fixed Deposit Form
A depositor is required to fill out an SBI Fixed Deposit Form irrespective of whether FD will be availed either online or offline. The details required are as follows:
- Customer status – existing customers or new to the bank
- Co-applicants details
- Term of deposit
- Product name or the name of the deposit scheme
- Details of the account in which interest is to be credited
- Applicant’s details
- Funding account details, i.e., the account to be debited
- Frequency of interest payable
- Maturity instructions (tenure of policy, auto-renewal)
- Signature of both customers
SBI Fixed Deposit Interest Rates
| Revision in Interest Rates on Retail Domestic Term Deposits (Below INR 2 crore) | Revision in Interest Rates on Domestic Bulk Term Deposits (INR 2 Crores and above) | |||||||
|---|---|---|---|---|---|---|---|---|
| General public | Senior Citizens | General public | Senior Citizens | |||||
| Tenors | Rates w.e.f. 15/02/2023 | Annualised Yield# | Rates w.e.f. 15/02/2023 | Annualised Yield# | Rates w.e.f. 15/02/2023 | Annualised Yield# | Rates w.e.f. 15/02/2023 | Annualised Yield# |
| 7 days to 45 days | 3.00 | 3.00 | 4.75 | 4.75 | 5.25 | 5.25 | 3.50 | 3.50 |
| 46 days to 179 days | 4.50 | 4.50 | 5.50 | 5.50 | 6.00 | 6.00 | 5.00 | 5.00 |
| 180 days to 210 days | 5.25 | 5.35 | 6.00 | 6.14 | 6.50 | 6.66 | 5.75 | 5.88 |
| 211 days to less than 1 year | 5.75 | 5.88 | 6.25 | 6.40 | 6.75 | 6.92 | 6.25 | 6.40 |
| 1 Year to less than 2 years | 6.80 | 6.98 | 6.75 | 6.92 | 7.25 | 7.45 | 7.30 | 7.50 |
| 2 years to less than 3 years | 7.00 | 7.19 | 6.50 | 6.66 | 7.00 | 7.19 | 7.50 | 7.71 |
| 3 years to less than 5 years | 6.50 | 6.66 | 6.00 | 6.14 | 6.50 | 6.66 | 7.00 | 7.19 |
| 5 years and up to 10 years | 6.50 | 6.66 | 6.00 | 6.14 | 6.50 | 6.66 | 7.50 | 7.71 |
| 400 days (Special Scheme, i.e. “ Amrit Kalash”) | 7.10 | 7.29 | 7.60 | 7.82 | ||||
How Can the SBI FD Calculator Be Helpful?
Fixed Deposits have a variable rate of interest, which depends on the tenure. The longer the tenure, the higher the rate of interest and vice versa. SBI offers FDs ranging from 7 days to 10 years, with interest rates that range from 2.90% to 5.10%.SBI gives benefits to senior citizens; they will receive an extra 0.5% over prevailing rates. Hence, it is a very important tool to use when deciding on investments. To use our online FD calculator SBI, you just need to provide the value of the initial amount of investment, rate of interest, and period. The total amount that you would receive at the time of maturity against the SBI fixed deposit will be reflected within seconds.
Some of the benefits of using the State Bank of India FD Calculator:
- It helps you make the right decision about your investment.
- Shows accurate and correct results as compared to manual calculation.
- It helps you to plan better and make short-term as well as long-term financial goals.
- It will show your maturity after deducting TDS if you are a taxpayer.
Investment done with a combination of short-term and long-term deposits is one of the best ways to increase your investment. You can get more returns on short-term FDs than on a savings account. Similarly, you can get very good returns on your long-term FDs that can be helpful in your events like weddings or any financial needs. Basically, it’s a tool that helps you make the right decision about investment and get the highest returns on your investment.
How to Use the SBI FD Calculator?
Mentioned below is the formula to calculate fixed deposit returns –
A = P (1 + r/n) ^ n*t
where–
- “A” is the amount that would be received on maturity.
- “P” is the amount that is to be invested.
- “r” is the annual interest rate.
- “n” is the number of times the interest is compounded. (If it is quarterly compounding, n will be 4; in case of half-yearly compounding, it will be 2; and in case of monthly compounding, it will be 12).
- “t” is the tenure of investment.
Let’s look at an example to understand the formula in a better way. You want to invest INR 1,00,000 for 5 years at 7% annual interest compounded yearly.
So –
- P = 1,00,000
- r = 7%.
- n = 1
- t = 5
Hence, A = 1,00,000 (1 + 7%/1) ^ 1*5.
= INR 1,41,488
Overview of Fixed Deposits
| Fixed Deposits | A type of deposit where you can earn interest by depositing a fixed amount for a certain tenure. |
| Who Provides? | All Banks and NBFCs |
| How to Open | Online and offline |
| Risk Meter | No risk |
| Types of FDs | StandardTax SavingsSpecialCorporateRegularSenior CitizenFlexi |
| Is there any fixed deposit scheme for NRIs? | Yes |
| Premature Withdrawal | Subject to Banks’ norms (Usually, there is a penalty on the interest rate) |
Eligibility Criteria to open a SBI FD Account
- Indian Resident Individuals
- Societies
- HUFs
- Partnership Firms
- Public and Private Limited Companies
- Non-Resident Indians (NRIs) and PIOs (Persons of Indian Origin)
- Trusts
Also Read:- Loan Against FD: Credit Facility Using Existing FD Account