SBI Fixed Deposit Schemes

Are you looking to invest in an FD? If yes, then this article will help you choose among the SBI Fixed Deposit Schemes according to your needs.

SBI is one of the leading banks when it comes to providing the best Fixed Deposit deals. The SBI Fixed Deposit is offered with flexible tenures which range from 7 days to a maximum of 10 years. The returns on these fixed deposits are even more attractive. The returns are regular, ranging from 2.90% to 5.50%. Senior citizens are in for a delight because the interest rates for them vary between 3.40% to 6.30%.

Apart from all the above facilities, SBI fixed deposits also offer customized plans for all the fixed deposit investors.

Types of SBI Fixed Deposits Schemes

The State Bank of India has launched various FD schemes which have been developed keeping in mind the needs of different investors. These are:

1. SBI Tax Saving Fixed Deposit
2. SBI WeCare Deposit
3. Regular Fixed Deposit
4. Reinvestment Plan
5. Flexi Deposit Scheme
6. Money Multiplier Plan

Let us look at the detailed breakdown of the different fixed deposits.

SBI Tax Saving Fixed Deposit

• This particular scheme has been made to aid the resident individuals and the HUFs so that they are able to save their money from the tax and are able to earn good interests from the fixed deposit.
• The tenure of the scheme varies from a minimum of 5 years to a maximum of 10 years.
• The minimum amount to be deposited is ₹1000 and the interest is compounded every quarter.
• Senior citizens are provided an extra 0.50% interest on their FDs.
• The interest earned would only be paid on the maturity of the deposit.
• You can also withdraw a loan of up to 90% against the FD.

Eligibility: Karta for a HUF or Hindu Undivided Family or resident Indians who have a PAN card can apply for this scheme.

SBI WeCare Deposit

• This scheme was designed keeping in view the declining rate of interest for senior citizens in the time of COVID. Under this scheme, the senior citizens can avail an interest of 30 bps on the FD in addition to the already offered interest of 50 bps.
• The tenure of this FD is for a minimum period of 5 years.
• The minimum deposit amount is ₹1000 and the maximum amount should be less than ₹2 crores.
• This benefit can be availed on both fresh deposits and the renewal of the mature deposits.

Eligibility: Resident Indians who are of and above the age of 60.

Regular Fixed Deposit

• Any investor can open a fixed deposit account to earn attractive interests along with security.
• Interest on the deposit would be given at the maturity of the deposit.
• Senior citizens will be provided an extra interest of 0.50% on the FD.
• There is an availability of auto-renewing the deposit.

Eligibility: Public or private limited companies, resident Indians, partnership and trust firms, and Hindu Undivided Family.

Reinvestment Plan

• In this variant of fixed deposit, the interest is only given after the maturity of the deposit.
• Provision of extra interest of 0.50% for the senior citizens.
• The loan can be granted for up to 90% against the FD.
• There is an availability of auto-renewing of the deposit.

Eligibility: Only the resident Indians who are of 18 years or above.

Flexi Deposit Scheme

• This scheme provides the benefit of depositing the amount multiple times in a month instead of making a single fixed deposit.
• It provides the availability of nominations.
• The interest on the deposit is calculated quarterly.
• Provision of extra interest of 0.50% for the senior citizens.
• The loan can be granted for up to 90% against the FD.

Eligibility: Public or private limited companies, resident Indians, partnership and trust firms, and Hindu Undivided Family.

Money Multiplier Plan

• This scheme provides the facility of linking the fixed deposit account with the savings account which gives a higher rate of interest.
• The loan can be granted for up to 90% against the FD.
• Provision of extra interest of 0.50% for the senior citizens.
• You can avail of tax benefits on this deposit under section 80C of the Income Tax Act.

Eligibility: Public or private limited companies, resident Indians, partnership and trust firms, and Hindu Undivided Family.

SBI FD Rates in India

Features of SBI Fixed Deposit

Given below are the various features and benefits of the SBI Fixed Deposit Schemes:

• The SBI fixed deposit can be opened with a minimum amount of ₹1000.
• The SBI Fixed Deposit Schemes have no maximum amount limit.
• The tenure of the schemes can range from 7 days to a maximum of 10 years.
• Senior citizens will be provided with a 0.25% extra interest rate for the SBI FD of above ₹10,000.
• The interest can be payable on a monthly, calendar quarter, or quarterly basis.
• The schemes also provide a nomination facility.

Benefits Provided by SBI FD

As mentioned above, the SBI Fixed Deposit is quite a popular option for investors to invest their money in a safe way because of the various benefits provided. The benefits are:

1. Guaranteed returns: The first and most important benefit of an SBI FD is that it provides assured returns to its investors. The interest offered by the bank is regulated on a monthly or quarterly basis. It might also depend on the bank’s discretion. The interest rate is higher than that of a savings account.
2. Government-insured: Credit Guarantee Corporation and the Deposit Insurance provides deposit insurance of ₹5 lakhs against the fixed deposit through all the banks. Investing in fixed deposits that have been rated by CRISIL and ICRA or have the AAA highest ranking are the safest investment options.
3. Loan against the FD: Not only is the investment made in FD a secure investment option but it can also be turned into an asset. SBI FD provides an option of taking a loan against the FD to the investor. There are many benefits of a secure loan against FD like the repayment options are flexible, the loan processing fee at SBI is 0, the depositor is not required to break the FD., the loan can be withdrawn up to 90-95% of the FD.
4. Flexible tenures: The SBI Fixed Deposit Schemes provide flexibility to the investors to choose their tenure according to their convenience. The tenure can vary from 7 days to 10 years and the interest rates on the fixed deposits are also varied.
5. Flexible investment: The SBI Fixed Deposit provides flexibility in the funds that have to be invested by the depositors. The minimum amount to be invested is ₹1000. There is no upper limit as to how much can be invested.

Eligibility for SBI Fixed Deposit Schemes

The following investors can avail of the benefits of an SBI FD:

• Business firms
• Government departments
• Trust accounts
• Employees who work in the private limited companies
• Governing bodies (local)
• Hindu Undivided Family or members of the HUF
• Indian citizens

Documents Required for SBI Fixed Deposit

Have a glance at all the important documents that are required to open a Fixed Deposit account with SBI.

• Photo identity proof such as Aadhaar card, passport, etc.
• Address proof which can be a passport, PAN card, etc.
• Passport-sized photograph
• Proof of age which can be a birth certificate or any other valid document
• Savings account detail of State Bank of India
• Online banking (activated)
• Mobile banking (activated)

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