The State Bank of India (SBI) is one of the most trusted public sector undertaking banks in the Indian banking sector. Founded in 1955, the bank has been providing exceptional banking services for nearly 7 decades now. Today, the bank’s suite of personal banking solutions includes various kinds of savings accounts, salary accounts, and current accounts. The bank also offers different investment options like recurring deposits, various government schemes, and of course, fixed deposits.
If you are looking for an investment avenue that is extremely low-risk and offers you assured returns in the form of interest, opening a fixed deposit account with SBI may be an ideal choice. In case you’re wondering if it’s safe, and if you want to know more about the features of this product, like the SBI FD rate of interest, investment tenure, and more, check out all the details below.
What is the SBI fixed deposit?
The SBI fixed deposit is an investment option where you can deposit a lump sum of money for a specified term. You then earn guaranteed returns on the amount deposited at a predetermined rate of interest. You can opt to have this interest reinvested in your FD, or paid out to you at periodic intervals.
SBI FD rates of interest can range from 2.90% per annum to 6.45% per annum, depending on the age of the depositor, the amount deposited, and the tenure of the deposit.
What are the features of the SBI fixed deposit?
To understand why the SBI fixed deposit is a safe investment avenue, you need to get to know its key features better. Check out these details below.
The minimum amount of deposit allowed is Rs. 1,000. Thereafter, you can increase your deposit in multiples of Rs. 100. There is no upper limit on the number of funds you can deposit in an SBI FD.
The tenure of the deposit ranges from 7 days to 10 years. So, you can choose an SBI FD for short-term, medium-term, and long-term life goals. The SBI FD rates of interest will vary based on the tenure of your deposit, as you’ll see below.
SBI FD rate of interest.
The rates of interest offered on SBI fixed deposits are revised from time to time. Also, the interest rates on FDs by senior citizens are slightly higher than the rates offered to depositors below the age of 60. Check out the SBI FD rates of interest will w.e.f. August 13, 2022, in the table below.
|Deposit Tenure||SBI FD rates of interest for deposits below Rs. 2 crores.||SBI FD rates of interest for deposits below Rs. 2 crores.||SBI FD rates of interest for deposits of Rs. 2 crores and above.||SBI FD rates of interest for deposits of Rs. 2 crores and above.|
|Non-senior citizens (% per annum)||Senior citizens (% per annum)||Non-senior citizens (% per annum)||Senior citizens (% per annum)|
|7 days to 45 days||2.90||3.40||3.50||4.00|
|46 days to 179 days||3.60||4.40||4.25||4.75|
|180 days to 210 days||4.55||5.05||4.50||5.00|
|211 days to less than 1 year||4.60||5.10||5.00||5.50|
|1 year to less than 2 year||5.45||5.95||6.00||6.50|
|2 years to less than 3 years||5.50||6.00||5.25||5.75|
|3 years to less than 5 years||5.60||6.10||5.25||5.75|
|5 years and up to 10 years||5.65||6.45||5.00||5.50|
You can also assign a nominee for your fixed deposit. Nomination can only be made to an individual, so you can nominate your legal heir or family member, as per your requirements.
Transferability of FD.
The FD facility is available at all branches of the State Bank of India. So, you can transfer your FD account among all the branches of the bank.
Is it safe to invest in an SBI fixed deposit?
Now that you know more about the features of the SBI fixed deposit, like the deposit tenures, the deposit limits, and the SBI FD rates of interest, let’s check out the reasons why it is extremely safe to invest in this product.
High credit rating.
Fixed deposits opened with the State Bank of India come with an F AAA/Stable rating by CRISIL. This high credit rating makes them extremely safe to invest in. It indicates that they carry extremely low credit risk, so your corpus is safe.
As per RBI mandates, the fixed deposit program offered by the State Bank of India is covered by deposit insurance offered by the Deposit Insurance and Credit Guarantee Corporation (DICGC). The principal and the interest are covered by this insurance, up to Rs. 5 lakhs.
Fixed deposits from SBI also offer guaranteed returns on the amount deposited. So, you need not worry about the possibility of not earning any returns on your investment. Also, the SBI FD rates of interest are predetermined, so you can know the rates beforehand and plan your deposits according to your financial goals.
The bottom line is that it is extremely safe to invest in fixed deposits from SBI. If you are a conservative investor, or if you are looking for a way to reduce your overall portfolio risk, choosing SBI fixed deposits may be a good option.