From February 10, the State Bank of India (SBI), India’s largest lender, has set customers interest rates at 4.5-6.5% of retail fixed deposits (FD). According to detailed information on sbi.co.in, the bank currently offers 5 fixed deposit options, ranging from 7 days to 10 years not exceeding Rs 2 crore, and the rate of return on senior citizens’ deposits is higher compared to other customers.
All five plans provide competitive SBI fixed deposit interest rates, therefore, bring considerable returns to their investors. As an investor, all you need to do is open a fixed deposit account then deposit the amount, and select the term you think is feasible.
During the process of tenure, you can no longer deposit any amount or withdraw.
Features and advantages of SBI fixed deposit:
- The minimum account opening amount for the fixed deposit plan is Rs 1,000
- No limit on the maximum fixed deposit plan
- Term of tenure varies from 7 days to 10 years
- For FD schemes more than Rs 10,000 SBI provides an additional interest rate of 0.25% for seniors.
- It provides the option of paying interest monthly/quarterly/calendar quarter.
- Nomination facility is also provided
SBI Senior Citizen Fixed Deposit:
The SBI FD rate for senior citizens is relatively high, and it is an ideal and profitable choice for saving provides them with funds. FD is ideal for who are on pension or retirees because it can be an additional source of income.
The annual interest rate of SBI FD ranges from 3.40% to 6.20% for deposits of less than Rs 2 crore. Tenure between 1 and 5 years, the highest fixed deposit rate SBI of 6.2% per year can be paid for senior citizens Citizen SBI FD. The investment period is 211 days to less than 2 years, and account holders can use. The annual SBI FD interest rate ranges from 4.90% to 5.60%.
Eligibility Criteria For SBI Fixed Deposit:
- Resident individual
- Minors signed by guardians or parents
- NRI with NRO or NRE account
- Partnership organizations
- Undivided Hindu family members
- Sole proprietorship
- Agents, clubs and societies
- Charity and educational institutions
The following documents are required to invest in SBI FD:
- Photo ID documents (Aadhaar card, passport, voter ID, driving license, etc.)
- Resident accreditation (Aadhaar card, passport, utility bill, driving license, etc.)
- Proof of age of the elderly and minors (birth certificate, enrollment certificate, senior citizen ID card, etc.)
- Bank account details with checks
- Passport size photo
Types of SBI fixed deposit plans:
There are roughly five types of SBI time deposit plans:
SBI Tax Saving Plan
Some FDs have tax incentives. Account-holders with this sort of FD can appreciate tax benefits as per Article 80C of the Income Tax Act of 1961. The minimum term of these FDs is 5 years; you cannot withdraw funds before the FD expires. In addition, they have a clause that loans or overdraft loans for these FDs are not allowed. Least amount must be deposited is Rs 1,000, up to Rs. 10,000 per year.
SBI Multiple Option Deposit Plan
The State Bank of India also provides customers with the opportunity to invest in multiple options deposit plans, associated with savings or current accounts. The best part of these deposits implies that clients can pull out funds whenever he/she wants and earn the usual interest from the remaining amount in the account. In spite of the fact that the minimum amount has to be Rs 10000 and there is no maximum limit. The terms of these plans are from 1 to 5 years and combined with other privileges, such as loan, nomination, etc.
Through the reinvestment plan, people can get the greatest return from FD. Account-holders can enjoy the maximum benefit at the compound SBI FD interest rate. Interest won’t be given consistently, however, relies upon the maturity of the FD. Rs 1000 is the minimum amount and no maximum limit. The minimum period for these FDs is 6 months to Up to 10 years. These also provide benefits for early withdrawals, loans or overdrafts facilities, nomination and automatic renewal facilities.
SBI Flexi Deposit Plan
This deposit scheme allows customers to deposit regularly. All in all, an individual can set aside money at his own comfort. One can put resources into these plans at least 5 years, most extreme 7 years. The minimum investment is Rs 5000. The maximum limit is Rs. 50,000 for a fiscal year.
SBI Annuity Deposit Plan
Through a one-time deposit, the account holder is eligible for this type of annuity fixed deposits in SBI. This amount will be paid in EMI (equal monthly instalments) and determined SBI fixed deposit interest rate. Here, advance payment is only allowed in the following cases: the death of the depositor. The minimum deposit is Rs 25,000, and account holders can also take advantage of loan facilities and the interests of the nominee.
Loan against SBI FD
SBI fixed deposits provide loan facilities. Investors can use up to 90% of the loan with a fixed deposit amount. Today, the FD interest rate for SBI FD loans ranges from 3.9% to6.4%.
Documents required to open an SBI fixed deposit account
You only need to provide the following documents to open an SBI fixed deposit account in the bank:
- SBI FD application form
- Copy of applicant’s identity certificate
- Copy of applicant’s address certificate
- Copy of PAN or Form 60/61
- Applicant’s Aadhar card details
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