This Article is From Jun 06, 2019

Looking To Invest In SBI Deposit Schemes? These Are The Returns You Get

SBI FD rates: On fixed deposit (FD) accounts, SBI grants interest rates in a range of 5.75-7.25 per cent across different maturities.

Looking To Invest In SBI Deposit Schemes? These Are The Returns You Get

SBI interest rates: Interest rates on RDs are same as that on fixed deposits (FD).

State Bank of India (SBI), the country's largest bank by assets, offers a variety of deposit schemes for its customers. The lender offers different investment limits, maturity periods and interest rates on these schemes. On fixed deposit (FD) accounts, the bank grants interest rates to the tune of 5.75-7.25 per cent across different maturities, according to its corporate website - Interest rates on recurring deposits (RDs) - also a type of term deposit - are same as that on fixed deposits (FD). SBI provides the same interest rates on deposits in its savings plus and basic savings bank deposit (BSBD) accounts as its regular savings account, according to the lender's website.

Here are the current interest rates and other important features SBI offers in its various types of accounts and deposit schemes:

SBI savings plus account

SBI's savings plus account is a savings bank account linked to Multi Option Deposit Scheme (MODS), wherein surplus fund above a threshold limit from the savings bank account is transferred automatically to term deposits opened in multiples of Rs 1000, according to SBI's website - The rate of interest for SBI's savings plus account is same as applicable to SBI's savings bank account. Customers with Rs 1 lakh or more in their accounts earn an interest of 3.25 per cent, whereas those with less than Rs 1 lakh in their savings bank accounts earn interest at the rate of 3.50 per cent, according to SBI.

SBI fixed deposit (FD) account

In a FD account, depositor can park lump sum amount and avail of features like guaranteed returns, choice of interest payout and liquidity through overdraft (OD) or premature withdrawal, stated SBI. The bank provides interest rates to the tune of 5.75-7 per cent to the general public on fixed deposit (FD) up to Rs 2 crore. For senior citizens, the lender provides interest rates to the tune of 6.25-7.5 per cent on FDs up to Rs 2 crore. The following FD interest rates are applicable on deposits below Rs 2 crore on different maturities, with effect from May 9, according to the bank's website:

PeriodGeneral public (% p.a.)Senior citizens (% p.a.)
7 days to 45 days5.756.25
46 days to 179 days6.256.75
180 days to 210 days6.356.85
211 days to less than 1 year6.46.9
1 year to less than 2 year77.5
2 years to less than 3 years6.757.25
3 years to less than 5 years6.77.2
5 years and up to 10 years6.67.1

SBI recurring deposit (RD)

Recurring Deposit (RD) is a product that provides a person with an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time. The minimum period of a SBI RD account is 12 months while the maximum period is 120 months. SBI's interest rates on recurring deposits (RDs) are same as that on fixed deposit (FD) accounts for that period, noted the lender on its website. 

SBI Public Provident Fund (PPF)

Public Provident Fund or PPF account is a retirement planning-focused instrument. It provides an investment avenue with decent returns coupled with income tax benefits, according to SBI. A minimum of Rs. 500 subject to a maximum of Rs. 1,50,000 per annum can be deposited in a PPF account. Interest rate is determined by central government on quarterly basis. At present it is 8.0 per cent per annum. Interest is calculated on the minimum balance (in PPF account) between fifth day and end of the month and is paid on March 31 every year, mentioned SBI.

SBI National Pension System (NPS)

State Bank of India (SBI) offers National Pension System (NPS) with an objective to provide social security to all citizens of India. NPS is a defined contribution pension system introduced by the Government of India as a part of pension sector reforms. The interest rate on NPS contribution is dependent on the pension fund manager (PFM) the account holder chooses. Subscriber is also allowed to change PFM once during a financial year. 

SBI Basic Savings Bank Deposit (BSBD) account

SBI's basic savings bank deposit (BSBD) account is primarily meant for economically weaker sections of society to encourage them to start saving without any burden of charges or fees. It is a zero balance savings account and does not require the customer to ensure any particular balance. However, withdrawals from this account are limited. SBI's BSBD account offers the same rate of interest as applicable to savings bank account.

SBI Tax Savings Scheme

SBI's Tax Savings Scheme, 2006 is a kind of term deposit. Resident Indians as an individual or in the capacity of the Karta of the Hindu Undivided Family are eligible to invest in this scheme, according to SBI's website. The minimum tenure for SBI Tax Savings Scheme, 2006, is five years which can go up to a maximum of 10 years. The interest rates for fixed deposit below Rs 2 crore are 6.6 per cent for general public and 7.1 per cent for senior citizens in maturity period of 5 years and up to 10 years.

SBI annuity deposit scheme

The SBI annuity deposit account enables the depositor to pay a one-time lump sum amount and receive the same in equated monthly instalments (EMIs), comprising a part of the principal amount as well as interest on the reducing principal amount. The following FD interest rates are for deposits below Rs. 2 crore from May 9, 2019, according to

PeriodGeneral public (% p.a.)Senior citizens (% p.a.)
3 years to less than 5 years6.77.2
5 years and up to 10 years6.67.1

SBI Senior Citizen Savings Scheme (SCSS)

Senior citizen savings scheme (SCSS) is an investment avenue that helps in generating wealth for a successful retirement life. The deposits made under Senior Citizen Savings Scheme (SCSS) earns an interest rate of 8.7 per cent per annum, from the date of deposit which is payable at the end of each calendar quarter i.e. March 31, June 30, September 30 or December 30, according to SBI.