What is the Interest Rate for Fixed Deposit in SBI?
A fixed deposit or FD is a guaranteed investment opportunity that offers you safe returns at a pre-decided rate of interest. Since fixed deposits offer you a fixed interest rate, you can always calculate your net earnings and profit from your investment once the FD matures. Due to the pandemic situation, interest rates and repo rates of banks have been reduced which has affected the overall willingness of people to invest. As a result, the interest rates on FDs offered by banks have also gone down and SBI is no exception. As of now, SBI fixed deposit interest rate varies depending on investors and selected tenure (ranging from 7 days to 10 years).
SBI Fixed Deposit Interest Rates
SBI which was nationalized post liberalization in 1991 and was also the First Bank before liberalization have been subjected to quite a few renewals and reviews from the perspective of reforms in the banking sector. State bank of India, SBI, offers attractive interest rates on fixed deposits and has provisions and special reservations for different categories of customers, general or senior citizens. These accounts also come with their own perks and benefits as well as tenure of maturity ranging from 7 to 10 years. Mostly the fixed deposit accounts offered by the bank are medium to long term tenured and are eligible for principal amounts below Rupees 2 crores. The interest rates for the general public range from 2.90% p.a. to 5.40% p.a. while senior citizens get an additional interest rate of up to 0.8%.
SBI WeCare Deposit Interest Rates
SBI fixed deposit interest rate varies between sectors or institutions and not only between the general and senior citizens. They have a special WeCare deposit scheme for the elderly which guarantees that an additional premium of 30 bps, over and above the additional 50 bps, will be paid for the tenure of 5 years and above. The interest rate prevalent is 6.20%.
SBI FD Interest Rates of NRIs
For NRI FDs, there is no maximum limit on the amount of money to deposit into the accounts. It ranges from 2.9 to 5.9% p.a for tenures extending from 7 to 45 days to 7 to 10 years for principal below 2 crore rupees and from 3% to 3.10% p.a. for principal above 2 crores rupees for an equivalent time frame.
FD Rates for NRE Individuals
Again for NRE fixed deposits, the rates vary from 5 to 5.40% for a tenure ranging from 1 year less than 2 years to 5 years and up to 10 years for deposits below two crore rupees and 3 to 3.10% p.a. on deposits above two crores. The terms of both these fixed deposits are that there’ll be no interest payment of you withdraw your money before 7days and that the interest will be 0.50% or 1% below the rate at the time of deposits for the period if the amount with the bank is 0.50% or 1% below the required rate.
How to Calculate SBI FD Returns
To calculate what your earnings might be at the end of maturity, you can take the help of their online fixed deposit interest calculator. All you need to put in are the details of your deposit amount or principal, the interest rate on the same and your deposit tenure. The calculator is both easy to use and comprehensible, further, it helps you to calculate across different banks the interest rates and the earnings from the same and go for the bank that offers the highest interest earnings.
Benefits of SBI FDs
The benefits of the SBI fixed deposit accounts are that they offer nomination facilities, so you don’t have to worry about losing out on your entire interest earnings should something happen to you; they have automatic renewal option after maturity if you wish to exploit the bond and earn greater interests and part withdrawal facility on the deposits is also viable. Further, you can apply for a loan amounting to 90% of the deposit and they offer online banking facilities. So you can readily invest your money in fixed bonds and profit as much.
This article give you complete information on the details of how to invest in fixed deposits at SBI. It is always advisable however that you go through all the scheme related details carefully before investing. It’s both safe and secure and a guaranteed mode of interest earning on your deposits.