Fixed deposit schemes are considered to be the safest and most guaranteed investment option. If investors have a conservative approach and don’t want to take risks with equities and mutual funds, these fixed deposits are the most suitable options for them.
At SBI, one can get a variety of fixed deposit schemes that suit the requirements of varied categories of investors. If you have decided to invest INR 5 lakhs in a particular scheme of fixed deposit, but all of your corpus funds are kept in any other bank account, then you need to fill out the SBI Bank RTGS Form first to get them transferred for investing in FD purposes.
Overview of Fixed Deposits
| Fixed Deposits | A type of deposit which lets you earn interest by depositing a certain amount for a certain tenure. |
| Who Provides? | All Banks and NBFCs |
| How to Open | Both online and offline |
| Risk Meter | No risk as it is RBI-governed |
| Types of FDs | · Tax Savings
· Reinvestment Plan · Multi Option Deposit Scheme · Annuity Deposit Account · Flexi Deposit Scheme |
| Is there any fixed deposit scheme for NRIs? | Yes, NRE (Non-resident External) and NRO (Non-resident Ordinary) |
| Premature Withdrawal | Subject to Banks’ norms (Usually, there is a penalty on the interest rate) |
| How to Calculate FD Interest? | Use the FD interest rate calculator available over the internet. |
Eligibility Criteria
Mentioned below is the list of eligible applicants who can apply for SBI Fixed Deposits:
1. Resident individual
2. Parents or guardians on behalf of minors
3. Sole proprietorship
4. NRIs through their NRE and NRO accounts.
5. Hindu undivided family or HUF
6. Partnerships
7. Trusts, public and private limited organizations
Documents Required
Mentioned below is the list of documents required to apply for SBI Fixed Deposits:
1. Two passport-sized photographs
2. Address Proof- Telephone Bill, Electricity Bill, Passport, Bank Statements, etc.
3. Identity Proof- PAN Card, Voter ID, Aadhar Card, Ration Card, Driving License, and Passport.
Different Types of Fixed Deposit Schemes at SBI
Mentioned below are the different types of fixed deposits available at SBI:
1. Tax Savings Fixed Deposit
| Maximum Tenure | 10 years |
| Eligibility | Individuals (jointly or singly)
HUFs |
| Maximum Deposit | Not exceeding INR 1.5 lakhs in a year. |
| Minimum Deposit | INR 1000 (in increasing multiples of 1000 after that) |
| Lock-in Period | 5 years |
| Interest Rates | As applicable to term deposits of SBI |
| Loan Facility | Not accessible |
| Mode of Operation | Jointly (by 1 or 2 adults and a minor) or singly |
| Nomination Facility | Available |
| Premature Withdrawal | Not allowed till the end of the lock-in period |
2. Reinvestment Plan
| Maximum Deposit Period | 10 years |
| Minimum Deposit Period | 6 months |
| Eligibility | · Resident Individuals (Jointly or Singly)
· HUFs · Minors (either on their own or via a guardian) · Firms/companies · Local bodies · Government departments |
| Maximum Deposit | No upper limit |
| Minimum Deposit | INR 1000 (in increasing multiples of 1000 after that) |
| Premature Withdrawal | Available
· For deposits lower than INR 5 lakhs, the premature withdrawal penalty is 0.5% · For deposits higher than INR 5 lakhs, the premature withdrawal penalty is 1% |
| Mode of holding | Jointly or Singly |
| Loan Facility | Up to 90% of the principal |
| Interest Rates | As applicable to SBI term deposits with quarterly compounding |
| Nomination Facility | Available |
3. Multi Option Deposit Scheme (MODs)
| Maximum Deposit | No upper limit |
| Minimum Deposit | INR 10,000 (in increasing multiples of INR 1000 after that) |
| Eligibility | · Resident Individuals (Jointly or Singly)
· HUFs · Minors (either on their own or via a guardian) · Firms/companies · Local bodies · Government departments |
| Maximum Deposit Period | 5 years |
| Minimum Deposit Period | 1 year |
| Premature Withdrawal | Available
· For deposits lower than INR 5 lakhs, the premature withdrawal penalty is 0.5% · For deposits higher than INR 5 lakhs, the premature withdrawal penalty is 1% |
| Interest Rates | As applicable to term deposits of SBI |
| Nomination Facility | Available |
| Loan Facility | Available |
4. Annuity Deposit Account
| Minimum deposit amount | INR 25,000 |
| Eligibility | · Resident Individuals (Jointly or Singly)
· Minors (either on their own or via a guardian) |
| Maximum Deposit | No upper limit |
| Minimum monthly annuity | INR 1000 per month for the entire tenure |
| Annuity Payment Date | On the anniversary date in the month following the deposit month |
| Deposit Period | 36/60/84 or 120 months |
| Premature Withdrawal | Yes, allowed, but only for the depositorand for deposits worth up to INR 15 lakhs. A premature withdrawal penalty will be charged per term deposits. |
| Nomination Facility | Available |
| Loan Facility | Allowed up to 75% of the remaining amount. Also, loan/OD is granted in specific cases only. |
| Interest Rates | As applicable to SBI term deposits |
5. Flexi Deposit Scheme
| Maximum Deposit | INR 50,000 in a fiscal year |
| Minimum Deposit | INR 5,000 (minimum of INR 500 in one instance) |
| Eligibility | · Resident Individuals (Jointly or Singly)
· Minors (either on their own or via a guardian) |
| Maximum Deposit Period | 7 years |
| Minimum Deposit Period | 5 years |
| Interest Rates | As applicable to term deposits of SBI |
| Penalty for not maintaining a minimum deposit | INR 50 per year |
| Loan Facility | Up to 90% of the principal amount |
| Premature Withdrawal | Available
· For deposits lower than INR 5 lakhs, the premature withdrawal penalty is 0.5% · For deposits higher than INR 5 lakhs, the premature withdrawal penalty is 1% |
| Nomination Facility | Available |
How to Open an SBI Fixed Deposit Account?
Mentioned below are the two different ways to open an SBI Fixed Deposit Account:
1. Online
Step 1: Log in to the SBI mobile app.
Step 2: Click on “Term Deposit” and proceed further.
Step 3: Fill in the information required like personal details, proof of identity and address, details of the nominee, etc.
Step 4: Enter the amount to be deposited along with the tenure chosen.
Step 5: You can also calculate the maturity value using the SBI FD Calculator.
Step 6: Provide the OTP received on the registered mobile number.
Step 7: Once it is authorized, the FD account will be opened.
Step 8: You can then download the acknowledgment slip for future reference.
2. Offline
Step 1: Visit any nearest branch of SBI.
Step 2: Fill out the Fixed Deposit application form with the necessary details.
Step 3: Provide the documents required.
Step 4: Now, submit the form to get the FD receipt.
How to Close an SBI Fixed Deposit Account?
Mentioned below are the steps to close an SBI Fixed Deposit Account:
Step 1: Visit any nearest branch of SBI.
Step 2: Fill out the Premature FD closure form.
Step 3: Provide the KYC documents along with the FD receipt.
Source: Cosmo Politian
