SBI FD Interest Rates 2023

The State Bank of India is the biggest bank in the country with crores of genuine customers. Customers can choose from a vast array of financial products, such as savings accounts, fixed deposits, loans, and credit cards. Out of various financial services the bank offers, the Fixed Deposit scheme stood as a strong pillar attracting many customers to invest in it. Moreover, CRISIL has given SBI’s Fixed Deposit programme an FAAA/Stable rating. This suggests that the FD product is reliable and that it will produce reliable returns on time. If you want to find out the updated FD interest rates for the year 2023, give this article a good read. We have compiled the latest FD interest rates of SBI on this page for our readers who are looking to invest in the scheme. 

SBI FD Interest Rates 2023

State Bank of India (SBI) is one of the largest banks in India, offering a variety of financial products, including fixed deposit (FD) accounts. SBI FDs are a type of savings account where customers deposit a lump sum of money for a fixed tenure, usually ranging from 7 days to 10 years, at a fixed interest rate. The interest rate offered by SBI on FDs is determined based on various factors, including the deposit amount, tenure, and economic conditions. SBI FD Interest Rates are competitive and offer customers a safe and secure investment option with guaranteed returns. The interest earned on SBI FDs is taxable as per the income tax laws in India, and customers can choose to receive interest on a monthly, quarterly, or cumulative basis. SBI FDs are a popular investment option for senior citizens, as they offer higher interest rates for this demographic. 

SBI Interest Rates on Retail Deposits Below INR 2 Crore

State Bank of India (SBI) offers attractive interest rates on retail deposits below INR 2 crore to its customers. These deposits include Fixed Deposits (FDs), Recurring Deposits (RD), and Savings Accounts. SBI is India’s largest public sector bank, and the SBI Fixed Deposit Interest Rate offered by the bank is benchmarked against market conditions and the Monetary Policy of the Reserve Bank of India. SBI FD interest rates vary based on the tenor of the deposit, with longer tenors typically offering higher interest rates. In conclusion, SBI offers competitive interest rates on retail deposits below INR 2 crore, making it an attractive option for individuals looking to grow their savings and earn a steady source of income.

You can find the updated interest rates of deposits below INR 2 crore in the table below:

Disclaimer: It is important to note that SBI FD interest rates are subject to change from time to time and customers should check the bank’s official website or contact the bank for the latest information. 

SBI Interest Rates on Retail Deposits of INR 2 Crore and Above

For customers who wish to deposit a large amount of money, SBI offers special interest rates for retail deposits of INR 2 crore and above. These interest rates are designed to incentivize customers to save more and to provide a higher return on their savings. The SBI FD Interest Rates 2023 on these deposits is subject to change based on the bank’s monetary policy and the prevailing market conditions.

You can check the revised interest rates on Domestic deposits (Rs.2 crores and above) in the table below:

Disclaimer: It is always recommended to check the latest interest rates directly with the bank before making a deposit. You can also bookmark our page and check it often for the revised rates.

SBI Fixed Deposit Scheme Features and Benefits

SBI Fixed Deposit (FD) is a savings instrument offered by the State Bank of India (SBI) that provides a fixed rate of interest on the principal amount invested for a specified period of time. SBI FD Rates for the year 2023 are available here. 

Features of SBI FD

• Minimum deposit amount: INR 1,000
• Interest rate: Depends on the deposit amount and the tenor (range from 4.5% to 6%)
• Tenor options: 7 days to 10 years
• Interest compounded quarterly
• Premature withdrawal allowed with penalties

Benefits of SBI FD

• Fixed rate of interest ensures predictable returns on investment.
• FDs are considered low-risk investments as they are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to INR 5 Lakhs.
• FDs can be easily opened by visiting an SBI branch or through online banking.
• Investors can choose a tenor that suits their financial goals.
• SBI allows its customers to avail of loans against their FDs.

Types of Fixed Deposits in SBI

State Bank of India (SBI) offers several types of fixed deposit (FD) schemes to cater to the diverse financial needs of its customers. The main types of FDs offered by SBI are:

1. Fixed Deposit

A conventional fixed deposit account offers guaranteed returns on the invested principal amount for a specific tenor. SBI fixed deposits are a popular investment choice for anyone looking to make a steady and predictable return on their investment because the interest rates provided on them are typically greater than those on savings accounts. You can check the updated SBI Fixed Deposit Interest Rates 2023 on this page.

2. Recurring Deposit

Recurring Deposits are a low-risk investment option and offer the flexibility of choosing the deposit amount and tenor as per one’s financial goals and convenience. In a Recurring Deposit, the deposit amount and the frequency of deposits (monthly, quarterly, etc.) are pre-determined, providing the investor with a disciplined approach to saving. 

3. Annuity Deposit

Annuity Deposit is a type of investment under SBI Fixed Deposit Scheme where an individual makes a lump sum deposit for a specified tenor and receives a fixed income in the form of annuity payments on a regular basis, typically monthly or quarterly. The interest rate offered on Annuity Deposits is similar to that of Fixed Deposits, and the rate of return on investment is generally higher than savings accounts.

4. Multi Option Deposit

SBI Multi Option Deposit (MOD) is a savings plan offered by State Bank of India (SBI) that provides the flexibility of choosing multiple fixed deposits with varying tenors. With SBI MOD, you can deposit a lump sum of money in multiple fixed deposits, each with a different tenor and interest rate.

5. SBI Tax Savings Deposit

In an SBI Tax Savings Deposit, the individual can invest a lump sum of money for a minimum tenor of 5 years and maximum tenor of 10 years. The interest earned on the deposit is taxed as per the individual’s income tax slab. However, the principal amount invested and the interest earned are eligible for tax benefits under Section 80C of the Income Tax Act, 1961, subject to a maximum limit of INR 1.5 Lakhs.

6. Special Term Deposit

SBI Special Term Deposit is a type of fixed deposit offered by State Bank of India (SBI) that provides attractive interest rates to customers who are willing to lock in their funds for a longer tenor. In an SBI Special Term Deposit, the individual can deposit a lump sum of money for a tenor ranging from 2 years to 10 years. 

7. Motor Accident Claims Annuity Deposit

The Motor Accident Claims Annuity Deposit is a scheme offered by State Bank of India (SBI) in partnership with the Ministry of Road Transport and Highways. The scheme provides a regular source of income to accident victims or their families, who have been awarded a lump sum amount as compensation. Under this scheme, the lump sum compensation amount is deposited with SBI, which in turn provides a regular annuity income to the depositor or their family. 

8. Floating Rate Bulk Term Deposit

A Floating Rate Bulk Term Deposit is a type of term deposit where the interest rate on the deposit is periodically adjusted according to the market conditions. It provides the depositor with the benefit of potentially higher interest rates if market rates increase, as opposed to a fixed rate term deposit where the interest rate remains constant for the duration of the deposit. 

Eligibility and Documents Required to Open SBI Fixed Deposit

To open a fixed deposit account with State Bank of India (SBI), the following eligibility and document requirements must be met:

Eligibility Criteria

• Indian residents including individuals, Hindu Undivided Families (HUFs), sole proprietorships, partnerships, limited liability partnerships, trusts, and companies are eligible to open a fixed deposit account with SBI.
• Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are also eligible to open fixed deposit accounts with SBI, subject to specific rules and regulations.

Documents Required 

• PAN Card or Form 60 (for individuals who do not have a PAN card)
• Address proof (Aadhaar card, passport, driving license, etc.)
• Signature proof (Passport, driving license, PAN card, etc.)
• Passport-sized photographs
• In case of joint accounts, all the account holders must provide their individual KYC documents.

Note: The exact list of documents required may vary depending on the type of account and the deposit amount, and SBI may ask for additional documents as deemed necessary.

How To Apply for State Bank of India Fixed Deposit?

Individuals can find the State Bank of India FD Rates on this page before applying for a FD. State Bank of India (SBI) Fixed Deposits can be applied through the following methods:

Open SBI Fixed Deposit Online Through Netbanking

To open a State Bank of India (SBI) Fixed Deposit online through netbanking, follow the steps below:

• Log in to your SBI netbanking account.
• Click on the “Fixed Deposit” option.
• Choose the type of Fixed Deposit you want to open, such as a regular FD, Tax Saving FD, etc.
• Enter the deposit amount, the tenure, and the rate of interest.
• Review the details and confirm the transaction.
• Make the payment for the Fixed Deposit through your SBI account.
• You will receive an acknowledgment receipt for the transaction.

It is important to note that you must have an active SBI netbanking account to open a Fixed Deposit online. If you do not have one, you can register for netbanking on the SBI official website or through the nearest SBI branch.

Open SBI Fixed Deposit Offline by Visiting Nearest Branch

To open a State Bank of India (SBI) Fixed Deposit offline by visiting the nearest branch, follow these steps:

• Visit the nearest SBI branch.
• Collect the Fixed Deposit application form and fill it in with the required information, including your personal details and the deposit amount and tenure.
• Submit the completed form along with any required documents, such as a government-issued photo ID and address proof.
• The bank representative will verify the information and assist you in completing the application process.
• You will be required to make the deposit in cash or through a cheque.
• Upon completion of the process, you will receive a receipt for the Fixed Deposit and the bank will provide you with the maturity date and interest rate.

How is SBI Fixed Deposit Interest Calculated?

SBI calculates interest on fixed deposits (FDs) on the basis of the amount deposited, the tenure of the deposit, and the interest rate applicable at the time of deposit. The interest on SBI fixed deposits is calculated on a simple interest basis, where the interest is calculated only on the principal amount. The interest rate for SBI fixed deposits is periodically revised by the bank and can be different for various tenures. With the help of SBI FD Calculator, you can effortlessly calculate the interest.

The formula for calculating interest on an SBI fixed deposit is:

Interest = Principal Amount x Tenure x Interest Rate / 365

Where:

• Principal Amount is the amount of deposit
• Tenure is the number of days for which the deposit is made
• Interest Rate is the rate of interest applicable on the deposit
• 365 is the number of days in a year

It is important to note that SBI also provides the option to choose the frequency of interest payments (monthly, quarterly, half-yearly, or annually), and the interest earned can either be reinvested or credited to a savings account. The SBI Fixed Deposit Calculator is available online in the official website for use.

Tax on SBI Fixed Deposit

Interest earned on SBI Fixed Deposits (FDs) is taxable under Indian tax laws. The tax liability on FD interest income depends on the tax slab you fall under and the amount of interest earned. In India, the interest income from fixed deposits is taxed as per the individual’s income tax slab rate, which ranges from 5% to 30%. SBI FD Interest Rates 2023 For Senior Citizens (above 60 years of age) have a different tax slab and are eligible for a higher interest income exemption limit compared to other taxpayers.

It’s important to note that if the interest earned on an FD exceeds Rs. 40,000 in a financial year, tax will be deducted at source (TDS) by the bank. The TDS rate is 10% for individuals, unless the individual submits a declaration in Form 15G or Form 15H (for senior citizens) declaring that their total taxable income for the financial year will be below the taxable limit.

Loan Against SBI FD

SBI offers a loan facility against fixed deposits (FDs) to its customers. A loan against FD is a type of secured loan where the FD is used as collateral to secure the loan. With this facility, you can use your fixed deposit as security to obtain a loan without breaking your FD.

The following are the key features of a loan against SBI FD:

Loan amount

The loan amount is typically up to 90% of the deposit value, subject to the terms and conditions of the bank.

Tenure

The tenure of the loan can be up to the tenure of the fixed deposit, or a shorter period as agreed upon between the borrower and the bank.

Interest rate

The interest rate on a loan against FD is usually lower than personal loans and unsecured loans, as the loan is secured against the FD.

Repayment

The loan against FD is repayable in equated monthly installments (EMIs), which can be convenient for the borrower.

Flexibility

The loan against FD facility is flexible, as you can choose to take a loan for a shorter period, which can be extended later if required.

It’s important to keep in mind that taking a loan against FD can reduce the returns you earn on your deposit and also affect your credit score if the loan is not repaid on time. Before availing a loan against FD, it’s advisable to consider your financial goals and repayment capability.

Penalty on Premature Closure of SBI FD

SBI imposes a penalty for premature closure of fixed deposits (FDs) before the completion of the agreed tenure. The penalty amount is determined based on the interest rate applicable at the time of deposit and the time remaining for maturity.

The following are the general rules for premature closure of SBI FDs:

Tenure of deposit

If the deposit is closed before the completion of 7 days from the date of deposit, no interest will be payable. If the deposit is closed after 7 days but before the completion of 1 year, a reduced rate of interest will be payable.

Penalty amount

The penalty for premature closure of SBI FD is generally equivalent to 1% of the interest rate that would have been earned on the deposit if it was held till maturity.

Exceptions

SBI may not impose a penalty in case of premature closure of FD in certain exceptional circumstances, such as the death of the depositor.

SBI Fixed Deposit FAQs

Conclusion

In conclusion, State Bank of India (SBI) fixed deposit (FD) interest rates for 2023 offer attractive returns for customers looking to invest their savings for a specific period of time. SBI FD interest rates vary based on the tenure of the deposit, with longer tenures generally offering higher returns. SBI FD interest rates are subject to change, and customers are advised to check the latest rates before investing. The bank also offers the convenience of online banking, allowing customers to easily manage their fixed deposits from the comfort of their own home.