Fixed deposit is a very easy and assured method of short and long-term investment. Open an SBI FD account is also a very easy and secure method for saving your money. Before investing in FD every needs to know about the fixed deposit interest rates. FD interest rates may vary according to banks. If you want to open an SBI fixed deposit account then you can use offline and online application methods. Here are the steps by which you can easily open an SBI FD account.
Open an SBI FD account by Internet Banking
- Firstly, go to the official site www.onlinesbi.com
- By using your ID and Password, you can log in to your account.
- Click on the ‘ Deposit scheme>Term Deposit> e-Fixed Deposit.
- Now press on to the SBI FD scheme.
- Now you choose which type of SBI FD scheme you want and proceed.
- Select the fixed deposit amount column and fill in the amount.
- For senior citizens who are above 60, click on the Senior Citizen tab.
- Select STDR deposit and TDR deposit & the decided maturity date.
- Accept all terms and conditions.
- Lastly, you can click on the Submit button.
SBI FD account by Mobile Banking
- Firstly, Install SBI YONO app & log in.
- Select your SBI FD plan and then proceed.
- Fill in all the required details like maturity plan, Interest rate, etc.
- Now, select your nominee.
- Read properly all Terms /conditions and then accept it.
- Lastly, you press the Submit button.
Through Offline
- In this offline method, people who want to open an SBI FD account need to visit SBI Brunch.
- Now, get the SBI FD application form and fill it out properly.
- All the necessary details like Fixed Deposit amount, nominee, etc filled in by you.
- Now, SBI bank gives you a Fixed Deposit Receipt.
Document Required To Open Fixed Deposit Account in SBI
- 4 Passport size photographs are needed while opening an SBI FD account.
- Fill SBI fixed deposit account opening form properly.
- Identity proof and address proof as per KYC norms( PAN card, Aadhaar card, etc).
- A birth certificate for age proof is also very necessary to open an SBI FD account.
- For declaration Form no. 60 or 61 of the Income Tax Act is needed.
- All the details like account number, IFSC code, and branch of your bank account.
TDS on Fixed Deposit
If the annual interest earned on your total deposit exceeds Rs. 40,000 then the TDS rate on FD interest will be 10%. The TDS (Tax deduction at source) deduction limit has been increased from 10000 to 40,000 in an interim budget in 2019. If an investor does not provide his/her PAN detail then the TDS rate on FD interest will be 20%. For senior citizens, the threshold limit of TDS on FD interest is 50000. NRO (Non-resident ordinary) FDs, the rate of TDS on FD interest is 30%. For NRE (Non-resident External) FDs, there is no TDS because these FDs are tax-free.
But here I am suggesting the many ways by which you can save TDS on the interest earned on your FD.
- Open FD Account in Post Office: if you open your fixed deposit account through the post office then no TDS will be deducted from the interest earned.
- Submit 15G/15H Forms: If your income is less than 2.5 lakh then submit 15G/15H forms then no TDS will be deducted as your income does not fall in the taxable limit.
- Invest in the name of Family members: Open FDs in the name of your family member by which you can split your deposits which results in to split of interest earned on your deposit.
SBI V/S Other Banks FD Interest Rates 2023(p.a for <2 cr.)
Bank Name | Tenure | General Public Interest Rate | Senior Citizen Interest Rates |
SBI | 7 Days To 10 Years | 3.00%-6.50% | 3.50%-7.50% |
HDFC Bank | 7 Days To 10 Years | 3.50%-6.25% | 4.00%-6.75% |
Axis Bank | 7 Days To 10 Years | 3.50%-6.50% | 3.50%-7.00% |
Bank of Baroda | 7 Days To 10 Years | 4.25%-6.15% | 4.75%-6.65% |
ICICI Bank | 7 Days To 10 Years | 3.50%-6.00% | 4.00%-6.50% |
Punjab National Bank | 7 Days To 10 Years | 4.25%-5.80% | 4.75%-6.30% |
IDBI Bank | 15 Days To 20 Years | 3.10%-5.90% | 3.60%-6.40% |
Canara Bank | 7 Days To 10 Years | 4.25%-5.85% | 4.25%-6.35% |
RBL Bank | 7 Days To 10 Years | 5.00%-7.25% | 5.50%-7.75% |
Yes Bank | 7 Days To 10 Years | 5.00%-7.25% | 5.50%-7.75% |
Premature Withdrawal in SBI Fixed Deposit Account
- Pre-mature payment is available.
- For Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be 0.50% (all tenors).
- For Term Deposits above Rs 5.00 lacs, an applicable penalty will be 1% (all tenors).
- The interest shall be 0.50% or 1% below the rate applicable at the time of Deposit for the period the Deposit remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower.
- However, no interest will be paid on Deposits that remain for less than 7 days.
Source:- SBI official site – Click Here
Hope the article will help you to make the right investment by opening of SBI FD account.