Interest rate SBI fixed deposit: Good news for savers! State Bank of India (SBI) has increased its fixed deposit (FD) rates across most tenors, effective December 27, 2023. This hike comes amidst a rising interest rate environment in India.
Here’s a quick overview of the revised FD rates for both the public and senior citizens:
Public:
| Tenor | Old Rate (%) | New Rate (%) | Increase (bps) |
|---|---|---|---|
| Up to 7 days | 3.00 | 3.50 | 50 |
| 7 days to 45 days | 3.00 | 3.50 | 50 |
| 46 days to 179 days | 4.50 | 4.75 | 25 |
| 180 days to 210 days | 5.25 | 5.75 | 50 |
| 211 days to less than 1 year | 5.75 | 6.00 | 25 |
| 1 year to less than 2 years | 6.80 | 6.80 | 0 |
| 2 years to less than 3 years | 7.00 | 7.00 | 0 |
| 3 years to less than 5 years | 6.50 | 6.75 | 25 |
| 5 years and above | 6.50 | 6.50 | 0 |
Senior Citizens:
| Tenor | Old Rate (%) | New Rate (%) | Increase (bps) |
|---|---|---|---|
| Up to 7 days | 3.50 | 4.00 | 50 |
| 7 days to 45 days | 3.50 | 4.00 | 50 |
| 46 days to 179 days | 5.00 | 5.25 | 25 |
| 180 days to 210 days | 5.75 | 6.25 | 50 |
| 211 days to less than 1 year | 6.25 | 6.50 | 25 |
| 1 year to less than 2 years | 7.30 | 7.30 | 0 |
| 2 years to less than 3 years | 7.50 | 7.50 | 0 |
| 3 years to less than 5 years | 7.25 | 7.25 | 0 |
| 5 years and above | 7.50 | 7.50 | 0 |
Here’s a chart comparing the old and new FD rates for public and senior citizens:
As you can see, the hike in FD rates is most significant for shorter tenors, with increases of up to 50 basis points. Senior citizens also get an additional 50 basis points on top of the public rates for most tenors.
What does this mean for you?
If you’re looking for a safe and secure investment option with decent returns, SBI’s revised FD rates offer a good alternative. However, it’s important to compare rates across different banks and financial institutions before making a decision. Additionally, remember that FD rates are subject to change, so it’s important to check the latest rates before investing.
See Also: All The PSU Banks in India, Interest Rates Control by the Indian Central Bank
State Bank of India (SBI) Recurring Deposit (RD) and Fixed Deposit (FD) Schemes:
I. Recurring Deposit (RD) Schemes:
- SBI Regular Recurring Deposit Scheme: Minimum deposit of ₹100 per month, tenure ranging from 6 months to 10 years, attractive interest rates for different tenures (e.g., 5.50% for 5 years, 6.00% for 10 years).
- SBI Mahila Samriddhi Account: Designed for women, minimum deposit of ₹500 per month, tenure up to 10 years, higher interest rates than regular RD scheme (e.g., 5.75% for 5 years, 6.25% for 10 years).
- SBI Bal Suraksha Scheme: For children below 10 years, minimum deposit of ₹100 per month, tenure up to 10 years, attractive interest rates with bonus on maturity.
- SBI Tax Saving RD Scheme: Offers tax benefits under Section 80C of Income Tax Act, minimum deposit of ₹100 per month, tenure up to 5 years, slightly lower interest rates than regular RD scheme.
II. Fixed Deposit (FD) Schemes:
- SBI Retail Domestic Term Deposits: Minimum deposit of ₹1,000, tenure ranging from 7 days to 10 years, interest rates vary based on tenure and amount (e.g., 5.80% for 1 year, 6.30% for 3 years, 7.30% for 5 years for deposits above ₹2 crore).
- SBI Tax Saving Scheme (80C): Offers tax benefits under Section 80C, minimum deposit of ₹100, lock-in period of 5 years, slightly lower interest rates than regular FD scheme.
- SBI Senior Citizen Savings Scheme: Designed for senior citizens (age 60 and above), higher interest rates than regular FD scheme (e.g., 7.40% for 1 year, 7.60% for 3 years, 7.90% for 5 years), lock-in period of 5 years.
- SBI Multi Option Deposit Scheme: Offers flexibility in interest payout frequency and reinvestment options, minimum deposit of ₹1,000, tenure up to 10 years, interest rates vary based on chosen options.
Please note:
- This is not an exhaustive list, and other SBI RD and FD schemes may be available.
- Interest rates are subject to change, so always check the latest rates on the SBI website before investing.
- It’s important to carefully consider your financial goals and risk tolerance before choosing an RD or FD scheme.
Additional Resources:
- SBI website: https://sbi.co.in/web/interest-rates/interest-rates
- SBI calculator: https://www.bankbazaar.com/fixed-deposit/sbi-fd-calculator.html
- RD vs. FD comparison: https://www.bankbazaar.com/recurring-deposit/differences-between-recurring-deposit-and-fixed-deposit.html
I hope this information helps! Let me know if you have any other questions about SBI RD and FD schemes.