SBI FD Schemes: Features, Type, Terms & Condition | How to open a FD account in SBI?
SBI fixed deposit is a popular investment choice offered by SBI. You can open FD account in SBI through online or offline and invest in any FD type of your choice.
SBI fixed deposit scheme: The State Bank of India (SBI) offers a wide range of investment choices. Term deposits and fixed deposits are two of the most essential products. You can open a fixed deposit account with the lender with terms ranging from seven days to ten years.
For public investors, interest rates on such agreements range between 2.90 and 5.40 percent per year. Seniors earn an additional 0.50 percent in interest on all terms.
How to open a SBI fixed deposit account?
An SBI fixed deposit account can be opened online or in person. The following are the methods for both approaches:
Online Process
Step 1: Visit the SBI website.
Step 2: Enter your login ID and password into your online banking account.
Step 3: Go to the homepage and click on the ‘deposit scheme’ and ‘term deposit’ options.
In step four, select ‘e-fixed deposit’ from the menu.
Step 5: Select the type of fixed deposit you want to open before clicking “Continue.”
Step 6: Fill up all relevant fields.
When you click the “Submit” button, your fixed deposit account will be created.
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Offline process
To open an SBI fixed deposit account, bring all required papers to your nearest State Bank of India branch. A bank representative will help you open a fixed deposit account there.
Fixed deposit types in SBI
The following are the various forms of fixed deposits offered by SBI:
- Term Deposit at SBI
- SBI Tax Saving Scheme
- SBI Reinvestment Plan
- SBI Multi Option Deposit Scheme
Advantages of SBI fixed deposit scheme
The different advantages of SBI’s fixed deposit programmes are listed below:
1. SBI offers a nomination option for its FD programmes.
2. The terms for fixed deposits range from seven days to ten years.
3. A Rs.1000 minimum deposit is required to start an SBI fixed deposit account.
4. SBI provides monthly, quarterly, and calendar quarter options for repayment.
Advantages of SBI term deposit scheme
1. Range of SBI FD rates: 2.90 to 5.40 percent per annum.
2. The highest Annual Percentage Rate for Term Deposits is 5.40 percent.
3. Range of ripeness: seven days to ten years
4. Minimum deposit amount: Rs.1,000
5. There is no maximum deposit limit.
6. The interest rate for senior folks is increased by 0.50 percent.
7. Interest may be paid monthly, quarterly, or annually.
8. Allow premature withdrawals.
9. An account holder is eligible for loans and overdrafts of up to 90 percent of the value of their deposit.
10. Overdraft limits range from Rs.25,000 to Rs.5 million.
11. The loan’s interest rate would be 1 percent higher than the CD rate.
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Features of SBI tax saving:
1. Deposit amounts range from Rs. 1,000 to Rs.
The terms of maturation are five and ten years.
2. The annual rate of interest for the SBI Tax Savings Scheme, 2006, is 5.40 percent.
3. The account holder is eligible for the tax benefits detailed in Section 80C of the Income Tax Act of 1961.
4. There are two types of FD accounts: Term Deposit (TD) and Special Term Deposit (STD).
5. An option for nomination is offered.
6. SBI employees and retirees are offered a return rate that is greater than one percent above the applicable rate.
SBI MOD Scheme Advantages:
1. The duration span for the SBI MOD Scheme is 1 to 5 years.
2. The minimum investment amount is Rs. 10,000.
3.No higher restriction on deposit amount.
4. You can effortlessly liquidate and transfer your FD funds to the connected account.
5. Applicable Tax Deducted at Source (TDS).
6. Withdrawals can only be made in multiples of Rs. 1,000.
7. Early withdrawal permitted.
8. Loan options are available.
9. An option for nomination is offered.
SBI Reinvestment Plan Features:
1. In the SBI Reinvestment Plan, interest income is deposited into your account only on the maturity date.
2. Interest earnings are continually added to the principal.
3. The minimum deposit amount is one thousand rupees.
4. There is no maximum deposit amount allowed.
5. The available maturities range from six months to ten years.
6. A nomination system is available.
7. Loan against the deposit available.
8. Overdraft up to 90 percent of the available main deposit.
9. Holding mode – individually or cooperatively.
10. Premature closure accessible.
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Premature withdrawal terms and conditions from SBI FD schemes:
The following terms and conditions apply to early withdrawal from the SBI fixed deposit scheme.
1. There will be a 0.50 percent penalty for early withdrawals of fixed deposits up to Rs.5 lakh.
2. Premature withdrawals of fixed deposits worth more than Rs. 5 lakh are subject to a 1% penalty.
3. The interest rate shall be 0.50 percent or 1% less than the rate applicable at the time of deposit for the deposit period, whichever is lower, or 0.50 percent or 1% less than the agreed rate.