As one of the largest and most trusted banks in India, the State Bank of India (SBI) offers a range of fixed deposit plans that design to suit the needs of every investor. Whether you are looking for short-term or long-term investments, SBI has a fixed deposit plan for you. In this guide, we will take a closer look at the various fixed deposit plans offered by SBI, their features, benefits, and how to invest in them.
What is a Fixed Deposit?
A fixed deposit (FD) is a type of investment where you deposit a lump sum amount with a bank for a fixed period of time, usually ranging from 7 days to 10 years. The bank pays you a fixed rate of interest on your deposit and which is higher than the interest rate offered on a regular savings account. At the end of the fixed period, so, you get back your principal amount along with the accumulated interest.
Types of Fixed Deposit Plans in SBI
SBI offers various types of fixed deposit plans that cater to different investment needs. so, Let’s take a look at some of the popular FD plans offered by SBI:
- SBI Regular Fixed Deposit
This is the most common type of fixed deposit plan offer by SBI. Under this plan, you can deposit a minimum of Rs. 1,000 for a period of 7 days to 10 years. The interest rate offer in this plan ranges from 2.9% to 5.4%, depending on the deposit amount and the tenure. but The interest compounds quarterly and is paid at the time of maturity.
- SBI Tax Saving Fixed Deposit
This is a special type of fixed deposit plan that comes with tax benefits under Section 80C of the Income Tax Act. You can invest a minimum of Rs. 1,000 and a maximum of Rs. 1.5 lakh in a financial year. The tenure of this plan is 5 years, and the interest rate offered is similar to the regular FD plan. However, the interest earned on this plan is taxable.
- SBI Multi Option Deposit Scheme (MODS)
This is a unique fixed deposit plan that offers liquidity to investors. Under this plan, you can link your fixed deposit account with a savings or current account. so, You can withdraw or transfer funds from the MODS account to your savings or current account in multiples of Rs. 1,000. so, The interest rate offered on this plan is similar to the regular FD plan.
- SBI Annuity Deposit Scheme
This is a type of fixed deposit plan where you deposit a lump sum amount with the bank, and the bank pays you a fixed amount as an annuity for a fixed period of time. The tenure of this plan ranges from 3 years to 10 years, and the minimum deposit amount is Rs. 25,000. The interest rate offered on this plan is lower than the regular FD plan.
Benefits of Investing in SBI Fixed Deposit Plans
Investing in SBI fixed deposit plan offers several benefits, some of which are listed below:
- Higher Interest Rates
SBI offers competitive interest rates on its fixed deposit plans and which are higher than the interest rates offered on a regular savings account.
- Flexible Tenure
SBI fixed deposit plans come with flexible tenures, ranging from 7 days to 10 years.
so, You can choose a tenure that suits your investment needs.
- Guaranteed Returns
Investing in SBI fixed deposit plan offers guaranteed returns on your investment. The interest rate is fixed at the time of investment and remains the same throughout the tenure.
- Tax Benefits
Investing in SBI Tax Saving Fixed Deposit offers tax benefits under Section 80C of
the Income Tax Act. This allows you to claim a deduction on your taxable income, thereby reducing your tax liability.
- Safe and Secure
SBI is a government own bank and is known for its safety and security. Your investment in the SBI fixed deposit plan is safe and secure. so, you can assure of getting back your principal amount along with the accumulated interest.
How to Invest in SBI Fixed Deposit Plans
Investing in SBI fixed deposit plan is a simple process. Here’s how you can invest in SBI fixed deposit plans:
- Visit the nearest SBI branch or log in to the SBI online banking portal.
- Fill in the fixed deposit application form and provide the necessary details such as deposit amount, tenure, and nominee details.
- Submit the form along with the necessary documents such as identity proof, address proof, and PAN card.
- Make the deposit amount through cash, cheque, or online transfer.
- Once the deposit is made, the bank will issue a fixed deposit receipt (FDR) containing details such as deposit amount, tenure, interest rate, and maturity date.
SBI fixed deposit plans are a great investment option for those who are looking for guaranteed returns and the safety of their investment. With a range of flexible options and competitive interest rates, SBI fixed deposit plans design to suit the needs of every investor. Whether you are a risk-averse investor or looking to save on taxes, SBI fixed deposit plans have got covere. So, go ahead and invest in SBI fixed deposit plans to secure your financial future.