What are the Benefits of Doing a Fixed Deposit in SBI?

State Bank of India offers a wide range of investment tools to its customers. Fixed Deposit or Term Deposit is a crucial product provided by SBI. Fixed deposits are risk-free and can be easily availed without any complicated documentation process. It is also an incredible option for those saving for the future as they get fixed returns over the period. Moreover, the SBI fixed deposit interest rate is higher than what most banks provide. One can even receive a certain amount of tax deduction on their fixed deposit account.

Benefits of an SBI Fixed Deposit

The various benefits of SBI Fixed Deposit schemes are:

SBI offers a nomination facility to all its fixed deposit holders.
The fixed deposit facility offered by SBI ranges between the period of 7 days and 10 years.
The SBI fixed deposit interest rate is between the range of 2.90% to 5.40%. However, this rate can be different depending upon the type of scheme.
The minimum deposit required is only Rs. 1000 to open a fixed deposit account. 1000. No maximum limit on the amount to be deposited.
While opening an SBI fixed deposit account, the bank offers quarterly, monthly, and yearly repayment options.
SBI offers assured and guaranteed returns to all fixed deposit investors. SBI bank fixed deposit interest rates are guaranteed and relatively higher than a savings account.
Term deposit in SBI is safe and secure as the government backs the funds no matter the bank’s current situation.
Once you invest in SBI fixed deposit, you are allowed to take a loan against your fixed deposit.
No processing fee is required while applying for a fixed deposit account.
The interest rate charged by the bank for the loan against fixed deposit is generally low, around 2% to 3%.
SBI allows account holders to withdraw prematurely.
With the term deposit scheme of SBI, a senior citizen will receive an additional interest rate of 0.5%.
Overdraft facility is available to fixed deposit holders. The limit on this overdraft is Rs. 25000 to Rs. 5 lakh.
You can convert your interest payout to a cumulative payout whenever you want.

SBI Fixed Deposit Eligibility Criteria

The essential fixed deposit eligibility criteria in SBI are listed below for you to take a look at before applying.

You should be an Indian citizen and resident to qualify for the fixed deposit scheme.
You should be a member of an undivided Hindu family, local bodies, firms, government departments, or private companies.
Any minor with parents or guardians’ consent is eligible for the fixed deposit.
A resident individual holding a single account can apply for the same.
Even two resident individuals holding a joint account can open an SBI fixed deposit account.

Documents required for an SBI Fixed Deposit

The documents required for SBI fixed deposit are given below:

You will have to provide your Aadhar Card, PAN Card, Driving License or Voter ID as proof of identity.
As proof of address, you are required to submit a Passport, Aadhar Card or PAN Card.
To prove the date of birth, the bank requires a PAN Card, Aadhar Card or Voter ID.

How to open an SBI Fixed Deposit account?

SBI Fixed Deposit accounts can be opened with both offline and online methods. The process of opening a fixed deposit account is given below:

Offline Method

To open a fixed deposit with an offline Method, you will have to visit the nearest branch of the State Bank of India with all the mandatory documents. A bank representative will further assist you with the application process of opening a fixed deposit account

Online Method

Follow the below steps for an online fixed deposit application:

Firstly, open SBI’s official website or mobile app.
Secondly, log into your SBI account with the help of your login ID and password.
Afterward, you will find a ‘deposit scheme’ option on the home page. Click on that option and then ‘term deposit’.
Next, select the ‘eFixed Deposit’ option from the menu.
Choose the one that best fits your need and click on the ‘proceed’ option.
An online form will be generated on the page.
Fill up all the necessary details on the online form.
Now, click on the submit option and a fixed deposit account will be opened soon.

In Conclusion:

If you are looking for the best fixed deposit scheme, we recommend you to go for the State Bank of India scheme. SBI fixed deposit scheme offers a variety of benefits such as higher interest, flexible tenure, loan facility, etc. You will not find it anywhere else. Since SBI is India’s oldest and most trusted public bank, you don’t have to worry about your deposits. So, what are you waiting for? Apply for the SBI fixed deposit scheme today and avail better future returns.