State Bank of India cuts fixed deposit rates to 8.75% from 9%
In a regulatory filing, the bank said it has lowered interest rates by 25 basis points (bps) to 8.75% from 9% for deposits maturing between one to three years, with effect from Thursday September state bank of india fixed deposit rates bank, however, increased its deposit rates for maturities between 180 to 210 days by 25 bps to 7.25%.
Speaking to a news channel, SBI Chairman Arundhati Bhattacharya said that they have excess of liquidity at present and there is not enough demand to match it.
“The reason for the victoria secret pink clear makeup bag is the fact that we have a lot of liquidity, we have not seen that kind of credit demand and therefore this is basically adjusting our asset liability management (ALM),” Bhattacharya said.
SBI had last revised its term deposit rates in July when it cut bulk brenton harrison tarrant religion deposit rates by 25 bps and retail term deposit rates by 50 bps for certain tenures.
The bank had cut bulk term deposit rates (Rs 1 crore and above) by 25 bps for tenures of 7-60 days to 6.25% and 61 days to less than one year to 6.75%. For retail term deposits (less than Rs 1 crore) the downward revision in rates affected deposits that mature between 7-179 days, which has been revised to 7% from 7.5%.
That apart, private sector lender IndusInd Bank recently cut interest rate on savings account to 4.5% per annum from 5.5% on daily balance up to Rs 1 lakh from September 1. However, it kept the interest on accounts that maintain a daily balance of more than Rs 1 lakh at 6%, the bank said on its website.
SBI shares were trading at Rs 2,610, marginally down about 0.5% on the BSE at 12:18 hours.
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State Bank of India (SBI) FD Interest Rate Calculator
Different types of Fixed Deposit Available with State Bank state bank of india fixed deposit rates India
- Fixed Deposit
- Recurring Deposit
- Tax Saving Fixed Deposit
- SBI Multi Option Deposit Scheme (MODS)
The fixed deposit can be opened offline by visiting as well as online.
To open fixed deposit online, the customer should be a registered for net banking.
Individuals can open fixed deposit with as low as Rs 1000 and there is specified a limit state bank of india fixed deposit rates the maximum amount. However, for an amount, more than Rs 50,000 Pan Card number should be available with the bank.
Fixed deposit tenure
Interest rates vary with tenure of the fixed deposit. Minimum tenure to open a fixed deposit is 7 days and maximum up to 10 years. State Bank's deposits interest rates range from 5.25% - 7.25% per annum depending on the tenure which is compounded quarterly. While interest rate changes for the amount of Rs 1 crore and above. Usually, the interest rate will be below the regular interest rate.
NRI fixed deposit
NonResident Indians can open fixed deposit with SBI where they can deposit rupee and foreign currency. If the deposit amount is up to Rs 5 lakhs, there will be no penalty levied for withdrawal after one year. For deposits up to Rs 1 crore and above no interest is payable if it is withdrawn before one year of deposit.
For NRO fixed deposit, interest is not payable if the deposit is withdrawn before 7 days. For deposit up to Rs 5 lakhs, no penalty will be levied for premature, provided it has remained with the bank for at least 7 days.
SBI Short-term Deposits
Investors who are looking out for investing their money for a short tenure say a week to one month or so can deposit in the fixed deposit schemes offered by the State Bank of India which is currently offering good rate of interest on the term deposits ranging from 5.75% per annum – 6.25% per annum for all the general citizens of the country. The deposited principal amount can be reinvested for a minimum of 7 days to a maximum of less than a year’s tenure. This type of investment is useful for attaining short-term financial goals as it helps to earn returns at a quick pace.
SBI Medium-term deposits
Investors who are looking out for investing their money for a period of more than a year and are looking for better returns on their invested amount can park their funds in SBI Medium-term deposits which offers finer interest rates on the initial investment. Generally, the tenure in case of medium-term deposits in SBI ranges between 1 year – 5 years. The rate of interest on the fixed deposit for the medium term stands between 6.40% per annum – 6.70% per annum. The investor can also opt for extending the maturity period of the said deposit by the renewal of the state bank of india fixed deposit rates deposit after attaining maturity as per their personal requirements. This type of investment is useful to get higher returns over a period of time and the minimum lock-in period for such deposits is 1 year.
SBI Long-term deposits
Investors who are looking for a long-term investment can also choose to lock in their amount safely by depositing their money in SBI long-term deposit scheme whose tenure ranges from 5 years to 10 years. The country’s largest public sector bank is providing an attractive rate of interest on long-term deposits which ranges between 6.70% per annum – 6.75% per annum. If in case, the investor wants to extend the maturity period of the initial deposit, then they can do so after the maturity period by reinvesting the deposited amount for a further period of time as per their personal requirements. This kind of deposits is particularly helpful if investors are looking out for investment over a long period of time.
SBI Senior Citizens Deposit
The State Bank of India offers extra interest rates for senior citizens term deposits. This makes the FD more attractive as well as a safe option post-retirement stage. The Senior Citizens Fixed Deposit is meant for those who are aged above 60 years. They can opt any of the FD Schemes based on their financial requirements and planning.
The interest rates offered for the Senior Citizens Fixed Deposit Scheme for:
• Short-Term ranges between 6.25% per annum – 6.85% per annum.
• Medium – Term ranges between 6.90% per annum – 7.25% per annum.
• Long-Term ranges between 7.30% per annum – 7.35% per annum.
Types of Fixed Deposits in SBI
• SBI Tax Savings Scheme
• Reinvestment Plan
• SBI Mods
• Annuity Deposit Scheme
• SBI Flexi Deposit Scheme
SBI Tax Savings Scheme
• The scheme can be taken up by resident Indians either for themselves or as an individual in the capacity of the Karta of the Hindu Undivided Family state bank of india fixed deposit rates PAN number.
• Tenure of deposit is a minimum of 5 years to a maximum of 10 years.
• The rate of Interest is as set by the SBI.
• Minimum deposit is Rs 1,000.
• Maximum deposit is Rs 1,50,000 per annum.
• Lock in period is 5 years.
• Premature withdrawal is not allowed before the completion of the said 5 years tenure from the date of initial investment.
• Nomination facility is available.
• Loan facilities are not available.
• Tax Benefits are available under Section 80C of Income Tax Act.
In this plan, the interest is paid at the time of maturity. Interest amount will be added to the credit one bank customer service online chat amount on a regular basis and the compounded interest will be calculated and paid thereon.
• The minimum amount of investment is Rs 1000.
• No limit for maximum investment amount.
• Tax Deducted at Source is applicable.
• Loan or Overdraft facility of up to 90% is available.
• Minimum tenure of deposit is 6 months.
• The maximum period of deposit discover bank credit card application up to 0 years.
• The rate of interest is as fixed by SBI.
• Nomination facility is available.
• Premature withdrawal of investment is available.
The SBI MODS stands for State Bank of India’s Multi Option Deposit Scheme. It is a term deposit which is linked to the current and savings account. The unique feature of this deposit scheme is that the investor can withdraw from this scheme in multiples of 1000 as per their financial requirements. The remaining balances amount state bank of india fixed deposit rates the fixed deposit will continue to earn the interest, as applicable at the time of the initial deposit.
One can open the SBI MODS either by visiting the nearest branch or through online mode.
Features of SBI MODS
• Minimum term of the deposit amount is Rs 10,000.
• There is no maximum limit for the deposit amount in case of SBI MODS.
• Rate of Interest is fixed by SBI state bank of india fixed deposit rates it varies regularly purely at the discretion of the bank.
• Minimum tenure of the deposit for SBI MODS is 1 year.
• Maximum tenure of the deposit in case of SBI MODS stands at 5 years.
• Premature withdrawal is allowed.
• TDR/STDR rules are applicable for premature withdrawal.
• TDS is applicable for this fixed deposit scheme.
• Loan facilities on the deposit is available.
state bank of india fixed deposit rates Further breaking of units when lien is marked on a particular account is not allowed in SBI MODS.
• Nomination facility is available.
• Deposits are completely liquid in nature.
• The customer has to maintain a monthly average balance linked to the savings bank account in the State Bank of India. The system does not break multi-option deposit to do so.
Annuity Deposit Scheme
In the Annuity Deposit Scheme, the investor will invest a lump sum amount one time and will receive the same in the form of equated monthly instalments, which includes part of principal amount and interest earned on the reduced principal amount. In this scheme, interest will be compounded on a quarterly basis and the same will be discounted to the monthly value.
Features of Annuity Deposit Scheme
• The minimum amount of deposit is based on the minimum monthly annuity of Rs 1,000.
• The minimum amount of deposit should not be less than Rs 25,000.
• There is no limit on the maximum amount of deposit in case of Annual Deposit Scheme.
• The tenure of the deposit ranges from 36 months, 60 months, 80 months, 120 months.
• The rate of interest is as applicable for fixed deposits of tenure as opted by the investor.
• Premature payment of the deposit is not possible.
• The Annuity Deposit Scheme will be prematurely closed in case of death of the investor.
• Payment of interest on the deposit will commence from the anniversary date www woodforest com customer service the month following the month of deposit. In case, if the date is non-existent (29th, 30th, 31st), then the interest will be paid on the 1st day of the next month.
• A loan facility of up to 75% of the balance amount of annuity will be granted on special cases.
• Nomination facilities are available.
SBI Flexi Deposit Scheme
The SBI Flexi Deposit Scheme is very similar to the Recurring Deposit Scheme. The only difference is instead of depositing a prefixed monthly instalment amount as in case of the normal recurring deposit, the investor can decide to vary the instalment amount and even the tenure of the deposit within the pre-determined annual sum.
Features of SBI Flexi Deposit Scheme
• The minimum instalment amount is Rs 500.
• The maximum number of instalments is 10.
• Minimum deposit amount per financial year is Rs 5,000.
• The maximum amount of deposit per financial year is Rs 50,000.
• Deposit frequency is any number of months and any time.
• The rate of interest is as set by the State Bank of India (as applicable to term deposits).
• Interest rate gets state bank of india fixed deposit rates on a quarterly basis.
• The minimum term of the SBI Flexi Deposit Scheme is 5 years.
• The maximum term of the SBI Flexi Deposit Scheme is 7 state bank of india fixed deposit rates • Premature withdrawal facility is available.
• Premature withdrawal fee is 0.50% below the rate applicable for the period of deposit till which the invested amount has remained with the bank.
• Tax Deducted at Source is applicable for the SBI Flexi Deposit Scheme.
• A Penalty charge of Rs 50 per annum is charged in case of non-deposit of monthly instalment.
• Loan facility is available on SBI Flexi Deposit Scheme.
• Nomination facility is available on the SBI Flexi Deposit Scheme.
• The depositor has to maintain a minimum balance of Rs 500 per annum in order to continue the account.
What is TDS?
The term TDS is the abbreviation for Tax Deducted at Source. The Income Tax department has introduced the concept of TDS with an intention to make an individual who is liable to make payment of specified nature to any other person that is deductee will deduct the tax at source and will remit the same into the account of the Central Government.
Tax deducted at source will be applicable where the interest earned on the fixed deposit is above Rs 10,000. The amount will be deducted 10% on interest income, where PAN number is available with the bank. In absence of PAN details, TDS will be applicable at 20% on interest income.
How to avoid TDS Deductions?
The investor should submit the below-mentioned forms if he/she is willing to avoid TDS deduction on fixed deposits.
• An investor has to submit Form 15G to the bank if in case he/she falls under the minimum tax slab.
• An investor has to state bank of india fixed deposit rates Form 15H, in case if he/she is a senior citizen.
• If an individual’s income for a financial year falls in the highest tax bracket (either 20% or 30%), then they need to pay extra tax over and above the TDS deducted by the banks or Non-Banking Financial Institutions.
Income Tax on Fixed Deposit Interest
The interest income from the fixed deposit is taxable if it exceeds Rs 10,000 per annum. The interest amount will be added to the total income and will be taxed at the slab rates which is applicable to the total income. Currently, all banks in India deducts tax deducted at source at 10% of the interest amount if it exceeds Rs 10,000 per financial year.
The recent interim budget for 2019 – 2020 has proposed to increase the limit of interest arising out of fixed deposit to Rs 40,000 per annum from the existing limit of Rs 10,000 per annum for income tax purpose.
Difference between Interest payout and reinvestment option
While booking fixed deposit there will be an option to choose the interest payout option. Individuals have to make a choice on how frequently interest should be paid from under interest payment option- monthly, quarterly and yearly and other option is reinvestment option where the interest earned is added to the principle and will be paid along with maturity.
Important to Check Overall Yields
Calculators help you to check overall interest rates yields. For example, with the calculator above, you can check the overall maturity value including the yield. So, all you need to do is enter the time period and the interest rates to easily get the maturity value of your FD. SBI interest rates on FDs have dropped dramatically, which has made it imperative to check the overall yields. Remember that if you are checking interest, the yields turn higher because of the law of compounding, hence it becomes necessary to check the yields. Most banks compound interest rates once every three months, or as they say quarterly compounding. State Bank of India has dropped interest rates on deposit rates and the yields have fallen, hence it is necessary to check the overall yields with the help of the calculator. Do not forget that these are with the tax liability on these deposits.
Feeding in Correct Data in FDs of SBI Calculator
If you wish to get the correct maturing FDs amount with the correct interest and principal amount on the calculator, you must put the correct data. Most of the calculators may fail to see the correct yield, unless there is a correct awareness on the time period for compounding. For example, in the case of the banks the compounding of the interest rates is done every quarter. In the case of non banking finance companies the yields after calculating the FD rates may not be high, as the compounding may happen on a half yearly basis or may happen annually. Every FD calculator, including the SBI FD calculator must take this into account before arriving at the final figure. The yields can vary and in some cases dramatically based on the data.
What is Compound Interest? How to calculate using an SBI FD Interest rate Calculator?
Compound Interest means the interest which we get after adding suntrust mortgage sign on interest on the initial deposit and also the accumulated interest of the specified period. Here the specified period means every bank gives some specified time like quarterly, half yearly or on an annual basis for the interest rate to get compounded.
For making things easy, it is better to check the FD interest rate using an SBI FD Interest Rate Calculator. On goodreturns.in you can calculate the interest rate of not only SBI but also of various banks such as HDFC, ICICI, almost of all the banks. If you visit the fixed deposit interest rates page, you will find the details of every bank such as maturity period, interest rates for general and senior citizens. If you want to check the exact interest rate for the amount you have deposited better to visit the SBI FD Interest Rate Calculator page and check.
How FD interest rates are changed by SBI?
State Bank of India like most other banks reviews its own credit requirement, asset liability match and general movement in interest rates, before deciding on hiking or reducing the same. One of the big reasons to also move interest rates, depends in what the Reserve Bank of India does with the repo rates. These are the rates at which the country's central bank lends money to other banks in the country.
When these are hiked, most banks like SBI too raise their interest rates. This is how the country's largest bank, manages to either raise or hold FD interest rates steady. Generally, the SBI is a trend setter as far as rates are concerned. For individual investors it is important to compare the interest rates before placing money in bank deposits.
This help in ensuring maximum returns. Also, one must use the SBI deposit calculator to know exactly, how much returns one would fetch on deposits.
An individual has to maintain a minimum deposit amount of Rs 1000 in order to open an SBI Fixed Deposit Account. There is no maximum deposit limit as such and an individual can deposit any amount of money in the SBI Fixed Deposit Account as per their convenience.
• The State Bank of India pays interest on the fixed deposits maintained by the customers at – Monthly, Quarterly, Calendar Quarter basis as per the requirements of the depositors.
• The senior citizens (individuals above 60 years) get an additional extra interest rate of 0.50% for the amount which is above Rs 10,000.
Interest Rates for SBI Staff and SBI Pensioners
The State Bank of India is offering a special interest rated for its staff as well as SBI Pensioners and it will be 1.00% above the applicable existing rate of interest. The interest rates for all the senior citizens as well as pensioners who are aged 60 years and above will be 0.50% above the existing interest rates payable for all the tenure to the resident Senior Citizens of India which means an SBI resident Indian Senior Citizen Pensioner will be eligible to get both the benefits of staff (1%) as well as resident Indian Senior Citizens (0.50%) on an annual basis.
- SBI Fixed Deposits comes with premature withdrawal facility.
- A penalty will be charged in case of premature withdrawal of a fixed deposit before it reaches the maturity period.
- For Retail Term Deposits up to Rs 5 lakhs, the penalty charge of 0.05% will be levied.
- For Retail Term Deposits which are more than Rs 5 lakhs and below Rs 1 crore, a penalty charge of 1% will be levied.
- The depositor will not earn any interest on the fixed deposits if the term of the deposit is less than 7 days.
Penalty on Premature Term Deposits
Most of the banks in India do levy a certain amount as a charge for premature withdrawal of term deposits (fixed deposits) when withdrawn well ahead of the maturity date. The country’s largest bank – State Bank of India also follows certain set guidelines in the event of premature withdrawal of term deposits.
A penalty charge of 1% will be levied for bulk term deposits if withdrawn before the maturity period. The penalty rate is applicable to all the new deposits as well as the existing ones. There is no discretion for waiver or reducing the penalty fee in case of withdrawal of a term deposit before the said maturity period.
Advantages of Fixed Deposits in State Bank of India
- It offers a high rate of interest in the public sector for normal as well as for senior citizens.
- The interest rates on fixed deposits are competitive in nature on par with industry rates.
- It offers flexible term options for the customers.
- An investor can choose the interest payment option which ranges from monthly, quarterly, semi-annual, annual basis and so on.
Important Points for Customers
- The interest rates of fixed deposits tend to vary on a regular basis purely at the discretion of the bank.
- The SBI offers the best interest rates to the domestic customers.
- Tax deducted at source will be applicable on all the fixed deposits whose interest earned amount per year crosses Rs 10,000 per financial year as per the prevailing tax norms.
- Revised interest rates will be applicable for the new deposits and for the renewed fixed deposits.
- Cumulative interest and reinvestment interest will be calculated on a quarterly basis.
- The penalty will be charged at a rate of 0.05% in case of premature withdrawal of fixed deposits of up to Rs 5 lakhs.
- A penalty fee of 1% will be charged on deposits which are more than Rs 5 lakhs and below Rs 1 crore.
What is an Interest Rate?
Interest rate stands for the amount charged or expressed as a percentage of principal by a lender (an individual who lends) to a borrower (an individual who borrows) for the use of assets. The interest rates are usually calculated on an annual basis and it is also known as the annual percentage rate (APR). The nature of assets borrowed can range from consumer goods, cash, building, vehicles, ornaments and so on.
Interest Rates on FD in SBI
• The interest rates on fixed deposit schemes vary based on the maturity period.
• The SBI fixed deposit scheme offers short-term deposits with the shortest term being 30 days.
• For the short-term period, the SBI FD interest rates range between 5.75% per annum – 6.25% per annum.
• The interest rate will be compounded on a quarterly basis and the same will be added to the principal amount at the end of every quarter.
• For a tenure of 60 days or 90 days or 120 days, the rate of interest on fixed deposits ranges between 6.25% per annum – 6.35% per annum.
• A six-month tenure SBI Fixed Deposit Scheme earns an interest rate of 6.35% per annum.
• For nine months tenure, the SBI fixed deposit will fetch the investor an interest rate of 6.40% per annum.
• SBI offers medium and long-term based fixed deposits and the interest rate for the same ranges between 6.70% per annum – 6.80% per annum.
• The tenure of the medium term based fixed deposits ranges between one year to five years.
• The tenure for long-term based fixed deposits ranges between five years to more than five years.
• The rate of interest for the long-term based fixed deposit schemes is between 6.80% per annum – 6.85% per annum.
Important Note: The interest rates are subject to change on a regular basis without any prior notice from the State Bank of India.
The country’s largest lender, State Bank of India revised the interest rates on fixed deposits with effect from November 28.
The interest rates on term deposits of select maturity period for retail deposits whose value is less than Rs 1 crore has been changed.
Currently, SBI is offering an interest rate of 6.8% per annum on domestic deposits whose tenure is 1 year to less than 2 years from the earlier interest rates check balance wells fargo debit card 6.7% per annum. The interest rate of 2 years to less than 3 years term stands at 6.8% per annum from the previous interest rate of 6.75% per annum.3 December 2018
The State Bank of India, country’s largest bank announced hike in the interest rates on fixed deposits which will come into effect starting from July 30, 2018. The bank has hiked the interest rates on FD’s below Rs 1 crore for a select tenure by 5 – 10 basis points (bps).
The SBI FD interest rates for the term ranging between
- 1 – 2 years is 6.70 percent
- 2 – 3 years is 6.75 percent
- 3 – 5 years is 6.80 percent
- 5 – 10 years is 6.85 percent
SBI slashes interest rates for fixed deposits; check new rates
India's largest lender State Bank of India has cut interest rates on fixed deposits (FDs) by 20 basis points. All tenors up to 3 years will be impacted by this rate cut. The change in FD interest rates will come into effect from May 12.
"SBI has slashed its interest rates on retail term deposits by 20 bps for 'up to 3 years' tenor in view of adequate liquidity in the system as well as with the bank," the bank said in a statement.
SBI FDs between 7 days to 45 days will now fetch 3.3 per cent, while tenor from 46 woodforest bank locations in georgia to 179 days will fetch 4.3 per cent.
For 180 days to 200 days and 211 days to less than a year tenors, FDs will now fetch 4.80 per cent from 5 per cent. One year to less than 2 years tenor and 2 years to less than 3 years tenor will also fetch 20 bps less from 5.70 per cent to 5.50 per cent.
Tenors from 3 years to less than 5 years and from 5 years to up to 10 years have been kept unchanged.
FD interest rates for senior citizens have been slashed by 20 bps as well. For tenor 7 days to 45 days, rates have been changed from 4 per cent to 3.80 per cent, while it has been changed to 4.80 per cent from 5 per cent for 46 days to 179 days tenor.
For 180 days to 210 days and 211 days to less than a year tenors, rates have been slashed from 5.50 per cent to 5.30 per cent. SBI FDs for senior citizens will now fetch 6 per cent from 6.20 per cent for 1 year to less than 2 years and 2 years to less than 3 years tenors.
For 5 years up to 10 years tenor, rates have been changed to 6.50 per cent from 6.20 per cent for senior citizens.
"The interest rate payable to SBI Staff and SBI pensioners will be 1.00 per cent above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50 per cent above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1 per cent) and resident Indian Senior Citizens (0.50 per cent)," the bank stated.
The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits, stated the bank.
Also read: SBI cuts MCLR by 15 bps on all tenors; launches new term deposit scheme for senior citizens
New Delhi: India's largest lender State Bank of India revised its fixed deposit interest rates on Wednesday (November 28). The bank hiked interest rate on select maturities by 5 to 10 basis points. It may be noted that one basis point is equal to 0.01 per cent. The interest rate is increased on fixed deposits below Rs 1 crore.
The interest rate payable to Senior Citizens has been increased as well. Other lenders like Kotak Mahindra Bank, HDFC Bank, ICICI Bank etc also hiked their fixed deposit interest rates recently.
Check out SBI's latest fixed deposit interest rate.
(Picture Credit: State Bank of India)
The interest rate payable to the SBI Staff and SBI pensioners will be 1.00% above the applicable rate. State bank of india fixed deposit rates rate applicable to all senior citizens and SBI pensioners of age 60 years and above will be 0.50% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian senior citizen pensioners will get both the benefits of Staff (1%) and resident Indian senior citizens (0.50%).
SBI had last increased interest rate on July 30 on fixed deposits having more than one-year maturity. Recently, many other lenders (both private and state-owned) have increased their deposit rates in order to attract deposit from investors in the wake of the liquidity crisis faced by the banking industry.
Analysts say rupee's depreciation against the US dollar and higher crude oil price has resulted in interest rate tightening in the economy. The 10-year government bond yield, which is an indicator of the prevailing interest rate in the economy, rose to a one-year high of 8.18 per cent in the month of September before falling to 7.68 per cent recently.
Representative Image  The Financial Express