SBI Term Fixed Deposits (FDs): Loan Facility, Premature Withdrawal, Interest Rate

SBI fixed deposits: Premature withdrawal against is available; no maximum cap on the amount that can be invested.

SBI Term Fixed Deposits (FDs): Loan Facility, Premature Withdrawal, Interest Rate

State Bank of India (SBI) fixed deposit accounts can be maintained with a minimum balance of Rs 1,000.

State Bank of India (SBI) offers the option of opening term deposits. Term deposits are also known as fixed deposits. "Park your lump sum amount in an SBI Term Deposit and avail of features like guaranteed returns, choice of interest payout, liquidity through OD or premature withdrawal. Invest today through OnlineSBI or by visiting your branch," said SBI on its website, sbi.co.in. Fixed deposits or FDs enable depositors to earn an attractive interest rate until a fixed, pre-decided maturity period.

(Also Read: Want To Open PPF Account In SBI? This Is What You Must Know)

If you want to open a fixed deposit account with SBI, here are the key things you should know:

Payment of Interest on SBI's fixed deposit (FD) accounts
The payment of interest is on monthly/ quarterly/ calendar quarter basis as per the requirement.

Payment of monthly interest will be at a discounted rate. Interest will be paid at the contracted rate irrespective of change in the rates thereafter. Senior citizens get 0.25 per cent extra interest rate for amount above Rs 10,000, said SBI.

(Also Read: Cash Shortage - SBI Tells Customers To Use PoS To Withdraw Up To 2,000 Rupees)

Premature Withdrawal with effect from 01.04.2017 on SBI's FD accounts
Premature withdrawal against SBI's FD accounts is available. For retail term or fixed deposits up to Rs 5 lakh, the penalty for premature withdrawal will be 0.50 per cent (all tenors). For retail term or fixed deposits above Rs 5 lakh but below Rs 1 crore, the applicable penalty will be 1 per cent (all tenors).

The interest shall be 0.50 per cent or 1 per cent below the rate applicable at the time of deposits for the period the deposit remained with SBI or 0.50 per cent or 1 per cent below the contracted rate, whichever is lower.

However, no interest will be paid on fixed deposits which remain for a period of less than seven days.

(Also Read: Tax-Saving Fixed Deposits (FDs): SBI Vs HDFC Bank Vs ICICI Bank Vs Axis Bank)

Interest rate on SBI's fixed deposit (FD) accounts

SBI fixed deposit accounts can be maintained with a minimum balance of Rs 1,000. There is no maximum cap on the amount that can be invested in fixed deposit accounts of SBI.

(All figures in % per annum)
 
TenorsExisting for Public w.e.f. 28.02.2018Revised For Public w.e.f. 28.03.2018Existing for Senior Citizens w.e.f. 28.02.2018Revised for Senior Citizens w.e.f. 28.03.2018
7 days to 45 days
5.75
5.75
6.25
6.25
46 days to 179 days
6.25
6.25
6.75
6.75
180 days to 210 days
6.35
6.35
6.85
6.85
211 days to less than 1 year
6.4
6.4
6.9
6.9
1 year to less than 2 year
6.4
6.4
6.9
6.9
2 years to less than 3 years
6.5
6.6
7
7.1
3 years to less than 5 years
6.5
6.7
7
7.2
5 years and up to 10 years
6.5
6.75
7
7.25

(Also Read: SBI Bank Fixed Deposits Vs Post Office Term Deposit: Interest Rate, Income Tax Benefits, Other Details)

Loan facility on SBI's fixed deposit (FD) accounts
Loans/ overdrafts up to 90 per cent of the principal deposit are available on SBI FD deposits.

(Also Read: What Utkarsh Small Finance Bank, SBI, ICICI Bank, HDFC Bank Offer As FD Interest Rates)

Terms and conditions of fixed deposit (FD) accounts
Interest can be paid on monthly intervals on a discounted rate.

Interest can also be paid at calendar quarter basis.

TDS at prevalent income tax rate is deducted if Form 15G/15H is not submitted.

Auto renewal is exercised if maturity instructions are not given.
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