Fixed Deposits are one of the safest investments to grow your wealth. They are secure financial instruments that offer guaranteed returns. If you are a conservative investor, who doesn’t want to take risks with mutual funds and equities, fixed deposits are the perfect choice for you. 

At SBI (State Bank of India), the biggest public sector bank in the country, you can find a range of fixed deposit schemes. SBI offers different fixed-saving schemes to suit the requirements of different categories of customers. Here, in this guide, we list out the five distinctive types of FDs that you can open at SBI besides a regular FD, helping you find the right investment choice that works best for you. 

5 Types of Fixed Deposit Schemes available at SBI

1.Tax-Saving FD

SBI's Tax-savings FD Scheme of 2006 offers tax benefits up to Rs. 1.5 lakhs under Section 80C of the ITA. Resident Indians or HUFs (Hindu Undivided Families) can avail of the benefits of this investment scheme, provided they have a valid PAN.

Key Features:

Features of Tax-Saving FD
Eligibility Individuals (jointly or singly)

HUFs
Minimum Deposit Rs. 1000 (in increasing multiples of 1000 after that)
Maximum Deposit Not exceeding Rs. 1.5 lakhs in a year
Interest Rates As applicable to term deposits of SBI
Lock-in Period 5 years
Maximum Tenure 10 years
Premature Withdrawal Not allowed before the end of the lock-in period
Loan Facility Not available
Nomination Facility Available
Mode of Operation Jointly (by two adults or one adult and a minor) or singly

*Interest rates can be changed at the discretion of the bank. 

2.Reinvestment Plan 

In a regular fixed deposit account, the investor usually receives periodic interest payouts. On the other hand, in the reinvestment plan, the interest is paid only at the time of maturity. The interest accrued is added to the principal, and compound interest is calculated on the principal + interest.

Key Features:

Features of Reinvestment FD
  Eligibility
  • Resident Individuals (Jointly or Singly)
  • HUFs
  • Minors (either on their own or via the guardian)
  • Firms/companies
  • Local bodies
  • Government departments
  Minimum Deposit   Rs. 1000 (in increasing multiples of 1000 after that)
   Maximum Deposit   No upper limit
  Minimum Deposit Period   6 months
  Maximum Deposit Period   10 years
  Interest Rates   As applicable to term deposits of SBI with quarterly compounding
  Premature Withdrawal        Available
  • For deposits lower than Rs. 5 lakhs the premature withdrawal penalty is 0.5%
  • For deposits higher than Rs. 5 lakhs the premature withdrawal penalty is 1%
  Loan Facility   Up to 90% of the principal
  Nomination Facility   Available
  Mode of holding  Jointly or Singly

*Interest rates can be changed at the discretion of the bank

Additional Reading: SBI fixed deposit interest rates

3.MODS (Multi Option Deposit Scheme) . 

Generally, in a fixed deposit scheme, the amount invested cannot be withdrawn until the end of the tenure. However, the MODS is a specific type of fixed deposit account that allows investors to withdraw funds in multiples of Rs. 1000 as per his/her requirements. The balance amount continues to earn interest rates applicable at the time of the initial deposit.

It can be opened either by a savings bank account holder or a current bank account holder. A MODS account can be opened either by visiting any SBI branch or online.  

Key Features:

Features of MODS
  Eligibility
  • Resident Individuals (Jointly or Singly)
  • HUFs
  • Minors (either on their own or via the guardian)
  • Firms/companies
  • Local bodies
  • Government departments
   Minimum Deposit   Rs. 10,000 (in increasing multiples of Rs. 1000 after that)
   Maximum Deposit   No upper limit
  Minimum Deposit Period   1 year
  Maximum Deposit Period   5 years
  Interest Rates    As applicable to term deposits of SBI
  Premature Withdrawal  Available
  • For deposits lower than Rs. 5 lakhs the premature withdrawal penalty is 0.5%
  •  
  • For deposits higher than Rs. 5 lakhs the premature withdrawal penalty is 1%
  Loan Facility   Available
   Nomination Facility    Available

*Interest rates can be changed at the discretion of the bank. 

4.Annuity Deposit Account 

It's a type of fixed deposit account where the investor receives regular annuities. In this fixed deposit account, the investor deposits a one-time lump sum amount. The investor then gets the lump sum amount as EMIs (equated monthly installments). The EMI comprises parts of both the principal and as well the interest earned on the reducing principal amount. The interest is compounded quarterly and is discounted based on the monthly value.

Key Features:

Features of Annuity Deposit Account
  Eligibility
  • Resident Individuals (Jointly or Singly)
  • Minors (either on their own or via the guardian)
  Minimum deposit amount   Rs. 25,000
  Minimum monthly annuity   Rs. 1000 per month for the entire tenure
  Maximum Deposit   No upper limit
  Deposit Period   36/60/84 or 120 months
  Annuity Payment Date   On the anniversary date on the month following the deposit month
   Interest Rates   As applicable to term deposits of SBI
  Premature Withdrawal   Permitted, only in the case of the depositor. Allowed for deposits worth up to Rs. 15 lakhs. Premature withdrawal penalty as per term deposits.
  Loan Facility  Up to 75% of the balance amount, loan/OD granted only in specific cases
  Nomination Facility   Available

*Interest rates can be changed at the discretion of the bank. 

5.Flexi Deposit Scheme 

As the name implies, it’s a flexible deposit scheme. It’s a type of recurring deposit. However, instead of investing a fixed sum every month, you can deposit a variable deposit any number of times in a month. 

Key Features:

Features of Flexi Deposit Scheme
  Eligibility
  • Resident Individuals (Jointly or Singly)
  • Minors (either on their own or via the guardian)
  Minimum Deposit   Rs. 5,000 (minimum of Rs. 500 in one instance)
  Maximum Deposit   Rs. 50,000 in a fiscal year
  Minimum Deposit Period  5 years
  Maximum Deposit Period   7 years
  Penalty for not maintaining a minimum deposit   Rs. 50 per year
  Interest Rates   As applicable to term deposits of SBI
  Premature Withdrawal   Available
  • For deposits lower than Rs. 5 lakhs the premature withdrawal penalty is 0.5%
  • For deposits higher than Rs. 5 lakhs the premature withdrawal penalty is 1%
  Loan Facility   Up to 90% of the principal amount
   Nomination Facility    Available

*Interest rates can be changed at the discretion of the bank. 

Use the SBI FD Calculator to determine the Maturity Amount 

Use the SBI Fixed Deposit Calculator to determine how much you would be able to save using fixed deposits. Since the FD rates by SBI keeps on changing, using the calculator helps you get an accurate picture of the maturity amount as per prevailing interest rates. 

To use this tool, all you have to do is provide the deposit amount and tenure. Once you provide these two details, the calculator calculates the maturity amount based on current interest rates. 

EndNote

Invest in the Right FD from SBI and Grow your Wealth

If you want more features compared to a regular fixed deposit, you can choose any of these five special fixed deposit schemes from SBI. Opening an FD with SBI is quick and hassle-free. In most cases, you don't have to provide any additional documents since you have already submitted the required KYC documents to the bank. You can complete the procedure online or visit your nearest SBI bank branch to open an FD.

Additional Reading: 7 Tips on How to Invest in High Interest Fixed Deposits