SBI FD account holder? Know interest rates, benefits and other details

When it comes to savings, one of the most traditional instruments is fixed deposits, practised for decades. This savings method is preferred due to its guaranteed returns, security and low risk. One of the largest public lender, the State Bank of India provides its customers with the service of opening a fixed deposit wherein they put in lump sum amount in the account as well as benefit from choice of interest payout, liquidity through overdraft (OD) or premature withdrawals.

Here are some salient features that come along with opening a fixed deposit (FD) account with SBI

1. One can make a minimum deposit of Rs 1,000 with an SBI FD account. However, there is no maximum limit on the investment amount.

2. With SBI, one can have a fixed deposit for a tenure duration between 7 days to 10 years.

3. The account holders also have the choice of paying monthly or quarterly interests, by selecting the same at the time of opening the account. For monthly interest payments, the interest can be paid at a discounted rate. 

4. The interest that the consumer earns is taxable.

5. SBI also allows the account holder to designate a nomination along with loan facilities. 

Below Rs 2 crore! 

A customer can enjoy interest rate ranging from 5.75% per annum to 6.40% per annum for a tenors starting from 7 days to less than 365 days. For senior citizens, the interest rates for the same tenor duration is between 6.25% p.a to 6.90% p.a. 

For tenor 1 year to 10 years, the interest rates vary from 6.80% p.a to 6.85% p.a. The interest rates for the same duration between 1-10 years is 7.30% p.a to 7.35% p.a. for senior citizens. 

Between Rs 2 crore to Rs 10 crore! 

Interest rates range from 5.75% per annum to 6.40% per annum, for tenures between 7 days to less than a year. Furthermore, the interest rates vary from 6.25% p.a to 6.90% p.a for the same time duration for senior citizens.

For tenures from 1 year to 10 years, the interest rates fall between 6.70% p.a to 6.85% p.a . In the same tenor period, senior citizens avail interest rates between 6.25% p.a to 7.35% p.a.

Above Rs 10 crore! 

Here SBI offers an interest rate ranging from 5.75% p.a to 6.40% p.a interest rate, for tenures between 7 days to 365 days. Senior citizens get 6.25% p.a to 6.90% p.a range of interest rates for the same term period.

In the case of tenors between 1 year to 10 years, interest rates vary from 6.70% p.a to 6.85%. It is 6.25% p.a to 7.35% for senior citizens. 

However, a customer has to take a note of pre-mature withdrawals at SBI as well, as there are some extra charges. 

For bulk FDs, pre-mature withdrawals norms at SBI are: 

1. 1% is the premature penalty for bulk term deposits, for all tenors. This is also for new deposits including renewals. No discretion for reduction/waiver of penalty for premature withdrawal of term deposit.

2. Revised rates shall be applicable to fresh deposits and renewals of maturing deposits. 

3. The interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits. These shall also be applicable on domestic term deposits from Cooperative banks.