An overview of the State Bank of India
The State Bank of India (SBI) is a nationalised government-owned bank. The Government of India owns 58.6% shares in SBI and the remaining is held by various shareholders. SBI has over 14,000 branches spread across the country, making its domestic presence massive, and it keeps increasing as it acquires more state banks.
SBI offers some of the most attractive and sought after Fixed Deposit (FD) schemes in the country. The features and rates of interest offered are very competitive, and is available to all investors looking for a safe, fixed returns investment avenue.
The interest rates on FDs are subject to change depending on a bank’s operating and liquidity needs. We ensure rates at BankBazaar reflect the latest changes.
Short-term Fixed Deposit Rates
SBI offers short-term deposits from interest rates of 5.25% p.a. – 7.25% p.a., quarterly compounded.
The shortest term available is 30 days, which offers a 5.25% annual rate of interest. The rate of interest increases with an increase in the term of the FD. For deposit periods of 60, 90 and 120 days, the rate of interest is at 6.5% p.a. If you invest in a FD for 6 or 9 months, then the rate of interest you can earn are 6.75% & 7.0% p.a. respectively. The FD with a deposit tenure of one year earns an interest of 7.25% p.a. Considering a quarterly compounding frequency, the effective or annualised interest is quite competitive and a profitable short-term investment
Medium and Long-term Fixed Deposit Rates
Fixed Deposits that feature tenures of more than a year, up to 5 years, have interest rates ranging from 7.0% p.a. -7.5% p.a. The term could be for 1.6, 2, 3, 4, and 5 years. While the rates for these tenures hover around 7.0% p.a., the rate on a 1.6 & 2-years FD will give you an added advantage of an extra 0.5% making the interest 7.5% p.a. Again these rates are compounded quarterly and give customers an effective yield that delivers attractive returns.
Senior Citizens FD Rates
Most banks offer higher rates of interest for senior citizens, with SBI the rates of interest range from 5% for a 30 day term to 7.25% for a 5 year FD. The rate of interest is increased by 0.25% for senior citizens. The rate of interest of the FD vary depending on the term as it does with FDs in general. Since the interest is compounded quarterly it can add great to the maturity value of the FD. This addition can provide senior citizens with a regular if not an additional source of income.
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