State Bank of India is government-aided financial institution providing retail banking solutions to its customers. People looking for a safe and profitable investment option, State Bank of India is offering attractive and sought after fixed schemes to its customers that feature competitive returns with varying tenures. However, the rates are subject to change according to the bank’s asset-liability management requirements and market conditions.
The interest rates offered by the bank for the short-term deposits range in-between 5.5% to 6.5% per annum. The shortest-term for fixed deposit offered by the bank is one month for which the returns are pegged at 5.5% per annum.
Moreover, for the tenures of two, three and four months, the interest rate remains the same at 6.5% per annum although, for the holding period of six or nine months, the rate of interest is same at 6.5% per annum.
On the other hand, the rate of 6.5% per annum is offered by the bank for the deposit period of one year.
The interest rates offered by the bank for mid and long-term deposits range in-between 6.9% to 6.75% per annum for the deposit period of one year and up to five years.
For the holding period of one year and six months, the rate of interest is calculated at 6.9% per annum, and for the holding period of two years, the return is calculated at 6.25% per annum. Moreover, the rates remain the same at 6.25% per annum for the tenures more than two years.
State Bank of India has its network spread all across the country with 14,000 branches. The bank also provides with reinvestment plans which are an alternative to fixed deposits. Here, the returns earned by the deposit are paid out at the final payment date of the deposit of the plan. Under this scheme, the shortest tenure will be for six months, and the longest tenure will be for ten years with the minimum amount of Rs 1,000/- to be paid. SBI Reinvestment plan includes TDS per income tax norms, premature withdrawal, loan regarding overdraft and more.
The bank offers senior citizens with higher rates on their FDs ranging from 6% per annum for one month tenure to 6.75% per annum for five-year tenure. However, like the regular FD rates, the senior citizens FD rates will also vary depending on the tenures.