State Bank of India Fixed Deposit Plan

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SBI FD Rates

State Bank of India (SBI) is the oldest bank in India founded as the Imperial Bank of India during the British times. The government owns the stakes of the bank which is an Indian multinational financial association.

Fixed Deposit (FD) is the safest of investments that give high returns after a period. The interest provided on the FD is more than the general savings account. The banks also offer loans at competitive rates in exchange of the FD certificates.

The Rate of Interest on FD in SBI Varies with the Maturity Period.

SBI fixed deposit scheme offers short-term deposits with the shortest term being 30 days. SBI FD interest rates range from 5.25%pa to 7.25%pa compounded quarterly.

For 60,90, and 120 days the fixed deposit rate in SBI is 6.5% pa. A 6 month period for SBI fixed deposit gives an interest of 6.75% pa. The SBI fixed deposit interest rate for a nine month period is 7% pa.

SBI also offers medium and long-term fixed deposit tenures. The tenure ranges from more than a year to five years. The fixed deposit rate of interest for this scheme varies between 7% pa to 7.5% pa.

The rate on 1.6 & 2 years SBI FD fetches an added 0.5% pa interest making the total rate of interest 7.5%pa.

State Bank of India (SBI) Fixed Deposit Rates

It is advisable to reconfirm the FD Interest Rates from the bank before making any decision on basis of data provided below.

For Domestic Deposits – Less than Rs. 1 cr (As on Jul 01, 2017)

For Domestic Deposits – Above Rs. 10 cr (As on Nov 24, 2016)

For Domestic Deposits – Rs. 1 cr to 10 crs (As on Nov 24, 2016)

For NRO Fixed Deposit – Less than Rs. 1 cr (As on Jul 01, 2017)

For NRO Fixed Deposit – Above Rs. 10 cr (As on Nov 24, 2016)

For NRO Fixed Deposit – Rs. 1 cr to 10 crs (As on Nov 24, 2016)

For NRE Fixed Deposit – Less than Rs. 1 cr (As on Jul 01, 2017)

For NRE Fixed Deposit – Above Rs. 1 cr (As on Jul 01, 2017)

Latest SBI News

SBI Cuts Down FD rates

The State Bank of India offers a broad range of fixed deposits that fetch a good interest rate and plenty of other benefits such as nomination facility, flexible tenure duration, auto renewability options, different interest options, overdraft/ loan facility, etc.

Currently, the highest interest rate offered by SBI fixed deposits for individuals is 6.25 percent per annum, and the highest interest rate for senior citizens is 6.75 percent per annum.

The latest annual rate of Interest for individuals w.e.f November 1, 2017, is 5.25% for 7 days – 45 days, 6.25% for 46 days – 210 days, 6.25% for 211 days – less than 1 year, 6.25% for above 1 year – less than 2 years, 6.00% for 2 years – less than 5 years, 6.00% for 5 years – up to 10 years.

The latest annual rate of Interest for and senior citizens w.e.f November 1, 2017, is 5.75% for 7 days – 45 days, 6.75%for 46 days – 210 days, 6.75% for 211 days – less than 1 year, 6.75% for above 1 year – less than 2 years, 6.50% for 2 years – less than 5 years, and 6.50% for 5 years – up to 10 years.

SBI Hikes Up Rate of Interest On 1 Crore To 10 Crore Deposits

The excess liquidity that had flooded the banking sector due to demonetization, is drying out. As per Nomura Global Research, deposit growth normalized to 9.8 percent in the month of October. Bank credit has moved up as well. Now State Bank of India has hiked its rate of interest on bulk deposits. It has, also, reversed its rate cut immediately after demonetization.

In the previous month, SBI had cut down the interest rate on deposits below 1 crore Rupees by 25 basis points. It has decreased the space between bulk deposits and high yielding retail deposits to 175bps, earlier it was 200bps. With this increase, space has narrowed down further to 100bps.

As per a Times of India report, the revised rates are a reflection of stiffening liquidity due to the move reducing the distance between wholesale rates and retail rates. As per C. Venkat Nageswar, DMD (Deputy Managing Director) global markets, SBI- “The decision was solely pushed by investment opportunities.”

While the spike in rates looks tempting, cautiously shop around before investing your money. According to the media reports, these bulk deposit rates, even after the spike, are lesser than what is offered by other banks for bulk deposits.

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