SBI FD Offers Up to 7.05% Interest: ₹10 Lakh Can Grow to ₹20.11 Lakh in 10 Years – Check Details

SBI Fixed Deposit is a popular fixed-income option for individuals looking to earn predictable returns on a lump-sum investment. The State Bank of India offers FD tenures ranging from 7 days to 10 years, with different interest rates for general customers and senior citizens. Investors can choose between maturity and periodic interest payouts, while eligible deposit holders can also access a loan or overdraft facility against their FD. 

What is SBI Fixed Deposit? 

SBI Fixed Deposit, also known as a Term Deposit, allows customers to deposit a lump sum with the bank for a selected tenure and earn interest at a fixed rate. The minimum deposit is ₹1,000, while there is no upper limit on the deposit amount. Customers can open an SBI FD online through OnlineSBI or by visiting an SBI branch.The deposit can be held for periods ranging from 7 days to 10 years, depending on the investor’s requirement.

Key Features of SBI Fixed Deposit 

• Minimum deposit: ₹1,000
• Maximum deposit: No upper limit
• Tenure: 7 days to 10 years
• Interest payout: Interest is generally payable quarterly or along with the principal at maturity. For term deposits of 12 months and above, customers can request monthly, half-yearly or yearly interest payments.
• Monthly interest: Monthly interest is calculated for the quarter and paid at a discounted rate.
• Premature withdrawal: Available subject to applicable SBI rules and penalty.
• Loan/overdraft: Loan facility is available against eligible term deposits.
• Nomination: Nomination facility is available in favour of an individual.
• Transfer: Term deposits can be transferred between SBI branches.
• TDS: Applicable as per prevailing income-tax rules.
• Bulk deposit: SBI’s Fixed Deposit page states that deposits of ₹3 crore and above are treated as bulk deposits.
• Online opening: Customers can open an SBI Fixed Deposit through OnlineSBI/YONO or by visiting an SBI branch.
  

SBI Fixed Deposit Interest Rates

• 7 days to 45 days: 3.05% p.a. for general customers and 3.55% p.a. for senior citizens.
• 46 days to 179 days: 4.90% p.a. for general customers and 5.40% p.a. for senior citizens.
• 180 days to 210 days: 5.65% p.a. for general customers and 6.15% p.a. for senior citizens.
• 211 days to less than 1 year: 5.90% p.a. for general customers and 6.40% p.a. for senior citizens.
• 1 year to less than 2 years: 6.25% p.a. for general customers and 6.75% p.a. for senior citizens.
• 2 years to less than 3 years: 6.40% p.a. for general customers and 6.90% p.a. for senior citizens.
• 3 years to less than 5 years: 6.30% p.a. for general customers and 6.80% p.a. for senior citizens.
• 5 years to 10 years: 6.05% p.a. for general customers and 7.05% p.a. for senior citizens. 
  

₹10 Lakh SBI FD: How Much Will You Get Across Tenures

Note: The maturity amounts are indicative calculations based on quarterly compounding and the applicable SBI FD rates. Actual maturity proceeds can vary depending on the exact deposit date, tenure and applicable bank rules. SBI states that term-deposit interest is calculated at quarterly intervals, while monthly interest is paid at a discounted rate.

Premature Withdrawal Rules

SBI allows premature withdrawal of eligible term deposits, but a penalty can apply. For retail term deposits of up to ₹5 lakh, the penalty is 0.50%. For deposits above ₹5 lakh and below ₹2 crore, the applicable penalty is 1%. SBI states that the applicable interest rate after premature closure is reduced by the relevant penalty from the rate applicable for the period the deposit remained with the bank or the contracted rate, whichever is lower. No interest is paid if the deposit is withdrawn before it completes seven days.

Also Read: NSC vs SBI 5-Year FD: ₹10 Lakh Investment Could Grow to ₹14.49 Lakh on Maturity – Check Which Offers Higher Returns

Loan Against SBI Fixed Deposit 

SBI allows customers to avail a loan or overdraft against eligible fixed deposits, subject to applicable terms and margin requirements. The facility allows deposit holders to access funds without prematurely closing the FD. For the general public, the applicable margin based on the residual tenure of the deposit is: 

• Residual tenor of more than 36 months and up to 60 months: 10% margin
• Residual tenor of more than 60 months: 15% margin
  

Important Rules of SBI Fixed Deposit 

• The minimum deposit is ₹1,000, with no maximum deposit limit for the applicable retail term deposit category.
• Deposits can be made for periods ranging from 7 days to 10 years.
• Interest can be paid at maturity or periodically, subject to the applicable deposit option.
• Monthly interest is paid at a discounted rate.
• Premature withdrawal is permitted subject to applicable SBI rules and penalties.
• Loan or overdraft facilities are available against eligible term deposits.
• Nomination facility is available.
• Term deposits can be transferred between SBI branches.
• TDS is applicable as per prevailing income-tax rules.
• Deposits of ₹3 crore and above are classified as bulk deposits under the applicable deposit-rate framework.
• Senior citizens receive an additional interest rate benefit on eligible deposits.

Who Should Consider SBI Fixed Deposit?

SBI Fixed Deposit can be suitable for individuals who want predictable returns with a fixed tenure and the flexibility to choose different interest payout options. It may be useful for salaried individuals, families, senior citizens and conservative investors who prefer fixed-income products and want access to facilities such as premature withdrawal and loans or overdrafts against eligible deposits.