SBI Fixed Deposit Scheme is a popular investment option offered by the State Bank of India to individuals looking to earn a stable return on their investment. It is a low-risk investment option that provides guaranteed returns and is suitable for risk-averse individuals.
The SBI Fixed Deposit Scheme allows investors to deposit a lump sum amount for a fixed period, ranging from 7 days to 10 years, at a fixed interest rate. The interest rate for SBI Fixed Deposits is higher than savings accounts and is predetermined at the time of deposit.
Additionally, SBI Fixed Deposits are backed by the Reserve Bank of India’s Deposit Insurance and Credit Guarantee Corporation, which guarantees up to Rs. 5 lakhs per depositor per bank in case of bank failure.
Overall, SBI Fixed Deposit Scheme is a reliable and convenient investment option for individuals looking for low-risk investments with guaranteed returns. In this article, we will straightforwardly discuss SBI Fixed Deposit Scheme. Now, let’s begin.
Main Objective Of The SBI Fixed Deposit Scheme:
The main objective of the SBI Fixed Deposit Scheme is to provide a safe and reliable investment option to individuals who are looking for a low-risk investment with guaranteed returns. Here are some of the key objectives of the SBI Fixed Deposit Scheme:
- Guaranteed returns: The SBI Fixed Deposit Scheme provides a guaranteed return on investment at a predetermined interest rate for the chosen period.
- Low-risk investment: Fixed deposits are considered a low-risk investment as they are not affected by market fluctuations and provide a fixed rate of return.
- Flexible tenure: SBI Fixed Deposit Scheme offers a flexible tenure ranging from 7 days to 10 years, allowing investors to choose a tenure that best suits their investment needs.
- Ease of investment: SBI Fixed Deposit Scheme is easy to invest in and can be opened with a minimum deposit amount. Investors can invest in fixed deposits online or by visiting their nearest SBI branch.
- Regular income: SBI Fixed Deposit Scheme also offers the option of receiving regular payment through interest payouts, either monthly or quarterly, which can serve as a source of regular income for investors.
- Tax benefits: Fixed deposits also offer tax benefits under Section 80C of the Income Tax Act, which allows investors to claim deductions on the amount invested in fixed deposits up to a limit of Rs. 1.5 lakhs per annum.
- Multiple investment options: SBI Fixed Deposit Scheme offers multiple investment options, such as short-term deposits, long-term deposits, tax-saving deposits, and special fixed deposit schemes for senior citizens.
Therefore, the SBI Fixed Deposit Scheme provides a safe and reliable investment option with guaranteed returns and flexible tenure. It is an ideal investment option for individuals looking for low-risk investments with regular income and tax benefits.
How To Apply For SBI Fixed Deposit Scheme In Both Online and Offline Ways?
SBI Fixed Deposits can be opened both online and offline. Here’s a detailed explanation of the application procedure for both methods:
Offline Method:
- Visit the nearest SBI branch: The first step is to visit the nearest SBI branch and request the Fixed Deposit application form from the bank executive.
- Fill out the application form: The application form requires you to provide details such as your name, address, PAN number, and other relevant information. You must also specify the deposit amount and tenure for which you wish to open the fixed deposit.
- Submit the form: Once you have filled out the application form, submit it along with the required documents to the bank executive. The records required for opening an SBI Fixed Deposit include identity proof, address proof, and PAN card.
- Make the deposit: You can make the deposit in cash or by cheque. The minimum deposit amount for SBI Fixed Deposit varies based on your type of deposit.
- Receive the Fixed Deposit Receipt: After you make the deposit, the bank executive will provide you with a Fixed Deposit Receipt (FDR), which contains details such as the deposit amount, tenure, and interest rate. Please keep this receipt safe, as it will be required at maturity.
Online Method:
- Go to SBI official site: The first step is to go to the online SBI site, i.e. www.onlinesbi.com
- Login: You will get a Login option on the ‘Personal Banking’ section on the left side of the homepage. Click on it.
- Details: Login with your username, password and captcha.
- Select the Fixed Deposit option: After logging in, select the Fixed Deposit option from the menu. Click the first option(e-TDR/e-STDR) from the drop-down menu. Then click the ‘e-TDR/e-STDR Fixed Deposit’ option and click on Proceed.
- Specify amount: On the next page, select the account from which the amount will be debited and the specific amount you want to open a fixed deposit. Then you need to choose the tenure and click on submit.
- Confirmation: On the next page, all your details will be shown, and you are asked to check them and confirm.
- Print: Then you can print your form or keep a pdf. The amount will be debited from your account and credited after the tenure ends. This is how you can open and close fixed deposits online.
SBI Fixed Deposit Calculator:
- SBI Fixed Deposit Calculator is an online tool that helps you calculate the maturity amount and interest earned on your SBI Fixed Deposit. It is available on the SBI website and can be used by anyone investing in an SBI Fixed Deposit.
- Using the SBI Fixed Deposit Calculator is simple and easy. All you need to do is enter the relevant fields’ deposit amount, tenure, and interest rate. The calculator will then calculate the maturity amount and interest earned for the specified period.
- The SBI Fixed Deposit Calculator is helpful because it allows you to compare different investment options and choose the one that best suits your financial goals. You can try different combinations of the deposit amount, tenure, and interest rate to see how they affect the maturity amount and interest earned.
- Additionally, the SBI Fixed Deposit Calculator helps you plan your investments better by clearly showing how much you can expect to earn from your investment. This can help you make informed decisions about how much to invest and for how long.
Frequently Asked Questions:
The minimum deposit amount for an SBI Fixed Deposit is Rs. 1,000.
Yes, premature withdrawal of SBI Fixed Deposit is allowed but may attract a penalty.
The interest on SBI Fixed Deposits is calculated based on the deposit amount, tenure, and interest rate and can be calculated using the SBI Fixed Deposit Calculator.
Wrapping Up:
Conclusively, SBI Fixed Deposits are a popular investment option among people looking for a safe and secure way to grow their savings. With competitive interest rates and flexible tenure options, SBI Fixed Deposits provide a good investment avenue for short-term and long-term financial goals.
Additionally, the SBI Fixed Deposit Calculator helps investors plan their investments better and make informed decisions about their savings.