State Bank of India (SBI) Fixed Deposit Interest Rates are between 2.90% and 5.40%. For senior citizens the FD rates are between 3.40% and 5.40%. The FD interest rate for other customers is between 2.90% and 4.90%. The interest rate offered depends on the deposit amount and tenure of the fixed deposit, along with the type of depositor. The FD schemes offer flexible tenure and high returns. It comes with facilities such as a loan against FD and lower minimum deposit limit.
In this post, we will discuss about features of State Bank of India Fixed Deposit Interest Rates, factors impacting the fixed deposit rate, types of SBI FD schemes, penalty on premature withdrawal, calculation of FD interest, State Bank of India FD Interest calculator and illustration, loan against SBI FD, and FAQs.
The features of fixed deposit rates by SBI are mentioned below.
State Bank of India offers best fixed deposit rates for FDs of long tenure, between 5 years and 10 years. The bank offers special rates to senior citizens. FD rates in SBI are influenced by the RBI’s monetary policies, credit demand, economic growth, and liquidity position of the bank.
Below-given are the factors affecting the fixed deposit rates in all bank and SBI:
Below-mentioned are some of the FD schemes by State Bank of India.
Closing a term deposit prematurely can attract a penalty 1% interest on FD is deducted from the originally applied SBI interest rate on deposit of Rs. 5 lakhs to Rs. 1 crore. The provision for penalty on premature closing of State Bank of India fixed deposit is subject to change and can vary from a deposit scheme to another.
State Bank of India calculates interest on its fixed deposits on quarterly basis. To calculate the maturity value of your FD account with the bank, the following factors must be taken into consideration.
Illustration of SBI FD Rate Calculation: Manali opens a fixed deposit account with a deposit of Rs. 1 lakh. She selects tenure of 45 days. The SBI fixed deposit rate for such tenure is 2.90%. On maturity of the FD, Manali will earn an interest of Rs. 362.50 on the principal deposit of Rs. 1 lakh. Thus, the total amount to be withdrawn will be Rs. 100,362.50
The bank can provide a loan of up to 90% of the amount deposited in an FD account. However, the bank will not furnish a loan on any FD that is of another bank. As per your need, you can take an overdraft facility or demand loan. There are no repayment penalties or processing fees.
Here are the FAQs on State Bank of India Fixed Deposit Rates:
The payment of interest is on the basis of a month, quarter, or year as per your need. If the payment is monthly, then it will be on a discounted rate. Thereafter, the interest will be calculated at the contracted rate even if the rates change later.
There is no maximum deposit limit. The minimum deposit amount is Rs. 1,000. Senior citizens can earn up to 0.25% extra interest on deposit amount over Rs. 10,000. For long term deposits, the highest rate is 6.20%. The tenure of FD is between 7 days and 10 years.
The penalty rate is 0.50% for all tenors for premature withdrawals up to Rs. 5 lakhs. The penalty rate is 1% for all tenors for retail term deposit of over Rs. 5 lakhs.
The interest rate is 1% or 0.50% lower than the applied rate at the time of deposit for tenure remained with SBI. Or the rate is 1% or 0.50% lower than the contracted rate. The calculation is on the basis of whichever rate is lower. No interest will be paid however on deposits maintained below 7 days.
There is flexibility to convert the regular interest payout on term deposits to cumulative interest payout (STDR), and vice-versa. In case of no maturity instructions, auto renewals will happen.
Disclaimer: All details on this page are for informational purpose only. The fixed deposit schemes and rates may change with a change in RBI policies and the bank’s policies. You can keep a check on SBI’s official website for current information.
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