Fixed deposit: Here are the latest interest rates offered by SBI
In SBI, an investor can also get access to loans up to 90% of the FD's outstanding value
A fixed deposit (FD) is a preferred investment option for many Indians as it is considered to be one of the safest avenues. It offers a fixed return based on the given tenure.
Term deposits are one of the conventional ways to invest money. One does not need to open a separate account for an FD. The amount in FD after attaining the maturity period gets deposited in
the bank’s savings account.
The bank offers interest, depending on the FD tenure and the deposit amount. This interest varies from bank to bank.
SBI’s fixed deposit
The State Bank of India is the country’s largest lender. It offers a wide list of products and services to customers including savings accounts, fixed deposits, loans, and credit cards. The FD programme by SBI has been rated as FAAA/Stable by CRISIL. This indicates that the FD offering is stable, and it will generate a stable and timely return.
Rate of interest
Investors in SBI fixed deposits can get up to a 5.40% rate of interest on their deposits. In the case of senior citizens, the interest rate goes up to 6.20%.
Auto-renewal of FDs
Investors can also avail auto-renewal facility, wherein the bank or financial institution will automatically renew the fixed deposit for the same period of time and at the same interest rate on maturity.
An investor can renew FD in case he/she wishes to extend the tenure of the deposit in certain FD schemes.
Even if the person does not approach the branch for payment/renewal on maturity, the special term deposit account will be automatically renewed at the time of maturity.
Access to loans
An investor can also get access to loans up to 90% of the FD’s outstanding value, in SBI. The interest on these loans is between 5.5% to 7.1%.
Also read: Debt funds vs fixed deposits: Where should you park your finances?
Here are the latest fixed deposit rates:
