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ULIP INSURANCE

Know all about SBI Fixed Deposit Accounts

Karan Sharma Karan Sharma 02 January 2020

SBI has one of the best Fixed Deposit schemes available in the country.

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State Bank of India is the largest bank of India, having its branches in many countries. It is completely government owned and ranked 236th in the Fortune Global 500 list of the world's biggest corporations of 2019.

Note: All information has been sourced from the official website of SBI.

The different types of Fixed Deposit offered by SBI are

SBI Term Deposit

You can park your lump sum amount in an SBI Term Deposit online through the website of SBI or by visiting the nearest branch. Term Deposit accounts can be opened by individuals, private and public limited companies, partnership firms, HUFs/specified associations, societies, trusts etc.

Features of SBI Term Deposit

  1. Interest is paid on a monthly/quarterly/calendar quarter basis as per your requirement

  2. Monthly interest comes at a discounted rate

  3. Senior Citizens get 0.25% extra interest rate for amount above Rs 10,000/-

  4. Tenure: 7 days to 10 years

  5. Loans/OD up to 90% of the principal deposit

  6. Nomination facility is available

  7. Flexibility to convert Term Deposit (regular interest payout) to STDR (cumulative interest payout) and vice versa.

Annuity Deposit Scheme

This is a deposit scheme where an individual pays a one-time lump sum amount in order to receive the same in Equated Monthly Installments (EMIs). The EMIs are received on a monthly basis and comprise of the principal amount plus interest.

Features of Annuity Deposit Scheme

  1. Period of deposit can be either of the following - 36/60/84 or 120 months

  2. Amount Based on minimum monthly annuity is Rs. 1000/-

  3. In no case the Minimum Amount of deposit should be below Rs. 25,000/-

  4. Annuity payment, net of TDS, will be credited to linked SB/CA account

  5. Rate of interest is same as Term Deposit

  6. Nomination facility is available

  7. Overdraft/loan up to 75% of the balance amount of annuity

  8. Transferability among SBI branches

SBI Multi Option Deposit Scheme

These (MODS) are Term Deposits linked to the Savings or Current Account. Under this account, you can withdraw from a MODS account in multiples of Rs. 1000. The balance amount in the MODS account shall continue earning the Term Deposit rates applicable during the time of initial deposit.

Features of MODS

  1. Minimum Period of deposit - 1 Year

  2. Maximum Period of deposit - 5 Years

  3. Minimum Term Deposit Amount for MOD Creation: Rs. 10,000/- (in multiple of Rs. 1,000/- each thereafter

  4. Loan facility

  5. Auto-sweep (of Rs. 10,000/-) takes place only after the linked (SB/CA) account has a minimum balance of Rs. 35,000/-

  6. Transferability among SBI branches

  7. Nomination facility available

Reinvestment Plan

In this type of Term Deposit, the interest is paid out only at the time of maturity. The regular interest is added to the principal and compound interest calculated and paid thereon.

Features of Reinvestment Plan

  1. Minimum period of deposit - 6 Months

  2. Maximum period of deposit - 10 Years

  3. Minimum deposit amount Rs. 1,000/- and thereafter in multiples of Rs. 100/-

  4. Rate of interest is same as Term Deposit

  5. Nomination facility is available

  6. Loans/OD up to 90% of the Principal deposit

  7. Transferability among SBI branches

  8. Can be opened in the name of a minor

  9. Payment of interest Paid out on maturity only

  10. Flexibility to convert Term Deposit (regular interest payout) to STDR (cumulative interest payout) and vice versa

SBI Tax Saving Scheme

This is similar to SBI Term Deposit scheme. It comes with a 5-year lock-in period and Income Tax Benefit under Section 80C of the Income Tax Act, 1961.

State Bank of India offers the following SBI FD Interest Rates on deposits below Rs. 2 crores with effect from November 10, 2019.

Interest Rate TermInterest Rate General PublicInterest Rate Senior Citizens
7 days to 45 days4.50%5%
46 days to 179 days5.50%6%
180 days to 210 days5.80%6.30%
211 days to less than 1 year5.80%6.30%
1 year to less than 2 year6.25%6.75%
2 years to less than 3 years6.25%6.75%
3 years to less than 5 years6.25%6.75%
5 years and up to 10 years6.25%6.75%

If you are looking to open an FD account, SBI is an excellent investment option.

Karan Sharma
Written by Karan Sharma
Content Specialist and Strategist, foolishly creative and always ready for a game of 'Call of Duty'.