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State Bank of India (SBI) Fixed Deposit scheme

State Bank of India is the most trusted public sector bank in India. It provides several schemes. However, the high SBI fixed deposit interest rate makes SBI FDs very attractive. The SBI fixed deposit scheme also gives you the option of securing a loan against it. It acts as an asset that provides you a loan of 90-95% of the deposit amount.  

To gain the benefits of SBI fixed deposit, you must understand how the scheme works. Take a quick look to go through all the intricacies involved.

Eligibility for SBI Bank FD Account

You may open an FD with SBI if you are:

  • A resident – you may individually hold an account or have a joint account with another resident
  • A minor
  • The Karta of HUFs
  • Any company, firm, government department, or local body


Different tenures, different interest rates in SBI FD Scheme

SBI offers fixed deposits for various periods. This gives you more flexibility in terms of blocking your funds. Since withdrawal before maturity comes with a penalty, you can choose the time frame that suits you to avoid the charge. SBI fixed deposit interest rates fluctuate with the period for which the amount is invested. 

For an investment below Rs. 2 crores, SBI fixed deposit interest rates for 2021 are:





7 to 45 days

2.90% 3.40%
46 to 179 days 3.90%


180 to 210 days

4.40% 4.90%
211 days to <1 year 4.40%


1 year to <2 years

5.00% 5.50%
2 years to <3 years 5.10%


3 years to <5 years

5.30% 5.80%
5 years to <10 years 5.40%



Types of FD schemes

Regular Fixed Deposit

For a regular fixed deposit, the tenure is between 7 days and 10 years. The minimum amount which is required to be invested is Rs. 1000. This is a popular option among investors as it comes with flexibility and a guarantee of returns. The amount earned is paid only at the time of maturity. The option of premature withdrawal is available, but it comes with a penalty. The charge is 0.5% if the amount deposited is less than Rs. 5 lakh. For a higher amount, it is 1%. 

SBI Tax Savings Scheme

The tax savings fixed deposit has a tenure of 5 to 10 years. It is designed in a way that the investors gain tax benefits on their deposits. The amount invested is deductible under section 80C up to Rs. 1.5 lakh. 

It also gives high earrings as interest is compounded quarterly. The minimum deposit amount is Rs. 1000, but it does not come with the option of premature withdrawal.

Annuity Deposit Scheme

Under this scheme, you can deposit an amount in a lump sum while investing. This is earned back by way of EMIs. This repayment consists of the principal amount and the interest earned on it. Every time you receive a payment, the future interest is calculated quarterly on the reduced principal amount. 

The tenure of deposit can be 3, 5, 7, or 10 years. The minimum amount that must be invested is Rs. 25,000. Further, it should be in a way that the minimum amount of every annuity payment is Rs. 1000.

Multi Option Deposit Scheme

The tenure of this scheme is 1 to 5 years. You must invest a minimum of Rs. 10,000 to avail this. The multi-option deposit FD scheme is linked to your current or savings account. This enables you to withdraw funds in multiples of Rs. 1000. This provides liquidity, making it a preferred option. The interest is earned on the funds remaining in your account at the initial rate.

Reinvestment Plan

The tenure of this scheme lies between 6 days and 10 years. The minimum amount to be deposited is Rs. 1000. There is no upper limit and anything above Rs. 1 crore is taken as a bulk investment. 

As the name suggests, any interest earned is reinvested. Interest is calculated quarterly on the accumulated amount. This yields a higher return on your investment. The interest is only paid out on maturity. 

Motor Accidents Claim Annuity Deposit Account (MACAD)

The tenure of this scheme is decided by the court and can range from 3 to18 years. Here, the account is specially created for the amount received by victims in a motor accident. The court decides the amount to be awarded as per the specifications of the case. However, it is calculated in a way that the monthly annuity amount is at least Rs. 1000.

All of these features and benefits make the SBI FDs the sought-after investments. Always weigh all your options and select the one which provides you the most flexibility, security, and highest returns. 

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