Fixed deposits (FDs) are a popular investment instrument amongst individuals who prefer safety and assured returns. Financial institutions, including SBM Bank, offer FDs with varying tenures and interest rates. This article delves into SBM Bank FD rates for 2023, highlighting the different rates based on deposit amounts and specific schemes.
What are SBM Bank FD Rates for 2023?
Upto INR15 Lakh (Domestic and NRO Deposits)
● 7-14 days: For regular citizens, the rate is 4.25%. Senior citizens get a slightly better deal at 4.75%.
● 91-120 days: Regular citizens can expect a 4.3% return, while SBM Bank FD rates for senior citizens stand at 4.8%.
● 181-210 days: Regular citizens are offered a rate of 5.55% and senior citizens can expect 6.05%.
● 1 year-366 days: The rate for regular citizens is 7.25%. Senior citizens, on the other hand, get a rate of 7.75%.
● 390 days: Regular citizens get a rate of 6.4% and SBM Bank FD rates for senior citizens can go up to 6.9%.
● 2 years and 3 days: The rate stands at 6.6% for regular citizens. Senior citizens get a slightly higher rate of 7.1%.
● Above 3 years and 2 days to 5 years: Regular citizens can expect a 6.15% return.
Greater than INR 15 Lakh (Domestic and NRO Withdrawable Deposits)
The specific rates for deposits greater than INR 15 lakhs and up to INR 2 crore range from 6.7% to 7.25%.
FCNR(B) Fixed Deposit Interest Rates
● USD: SBM Bank interest rates range from 4.15% for 1 year and above to less than 2 years, to 4.53% for 5 years.
● GBP: The rate is 1.00%.
● EUR: The rate stands at 1.05%.
● JPY: SBM Bank interest rates for JPY range from 0.01% to 2.35%.
RFC Fixed Deposit Interest Rates
● Less than 29 days: The rate is 0.30%.
● 30 days to less than 3 months: The SBM interest rate stands at 0.75%.
● 6 months and 1 day to less than 1 year: The rate is 1.65%.
● 1 year to less than 2 years: The SBM interest rate is 0.60%.
● 2 years to less than 3 years: The rate is 1.24%.
NRE Fixed Deposit Interest Rates
● Deposits up to INR 15 lakh: SBM Bank interest rates range from 6.7% to 7.5%.
● Deposits of more than INR 15 lakh to less than INR 2 crore: SBM Bank interest rates range from 4.25% to 7.25%.
Features of SBM Bank FD Rates
SBM Bank’s Standard Fixed Deposit:
● Duration spans from a quick 7 days to a long-term 10 years
● Choose how you’d like your interest: monthly, quarterly, compounded, or reinvested upon maturity
● Seniors? You get an extra 0.5% p.a. interest. A little perk for the golden years
● Need funds urgently? You can break the FD early, though there’s a penalty
● Fancy a loan? Use your FD as collateral
● Nominate someone to ensure smooth transactions
● Interest rates? They vary, but you’ll find rates between 4.25% and 7.75%
SBM Tax Saver Fixed Deposit:
● Invest here and enjoy tax benefits under Section 80C, up to INR 1.5 lakh
● You can invest a maximum of INR 1.5 lakh annually
● This SBM scheme locks in your funds for 5 years
● Seniors, you’re in luck again with an extra 0.5% p.a.
● No auto-renewals and no early withdrawals. It’s a solid commitment
● Need a loan against this FD? That’s a no-go
● Interest rates hover between 4.25% and 7.75%
SBM NRE Fixed Deposit:
● Convert your foreign investments into Indian rupees and back upon repatriation
● Opt for a tenure between 1 and 10 years
● The SBM scheme compounds interest quarterly
● Auto-renewal? Check
● Enjoy tax-free interest in India
● Repatriate both principal and interest freely
● Nomination? Absolutely
SBM NRO Fixed Deposit:
● NRIs, park your Indian earnings, like rent and dividends, here
● Invest anywhere from ₹25,000 with no upper cap
● Quarterly compounding ensures steady growth
● Renew both principal and interest automatically upon maturity
● The interest you earn is tax-exempt in India
● After tax payments, you can repatriate the interest
SBM FCNR Deposit:
● NRIs and PIOs, keep your foreign earnings safe and sound
● Choose a tenure between 1 and 5 years
● No worries about currency fluctuations
● Both principal and interest are tax-free
● Repatriate both amounts without any hitches
● And yes, you can nominate someone
SBM NRI Superia Deposit:
● Promises even better returns than the NRE/FCNR Deposits
● Tax-free earnings in India
● Auto-renew both principal and interest
● Repatriate both amounts freely
● And, of course, there’s a nomination facility
Premature Withdrawal Facility of SBM Bank FDs
Thinking of withdrawing your SBM Bank FD early? Be prepared: SBM Bank permits early withdrawals for most term deposits, but there’s a 1% penalty on the agreed interest rate. This penalty safeguards the bank’s financial planning against sudden changes. So, while the bank provies flexibility, it’s crucial to understand the costs to make informed decisions.
Conclusion
Navigating the world of FDs can feel like a roller coaster, with rates going up and down. But with SBM Bank, you’re in for a smooth ride. They offer a range of FD rates tailored for different tenures and deposit amounts. So, whether you’re a newbie investor or an old hand, there’s something for everyone. Remember, it’s not just about stashing away money; it’s about making informed choices that align with your dreams and financial goals.
SBM Bank FD Rates FAQ’s :-
Absolutely! Senior citizens investing in the SBM Tax Saver FD enjoy an extra 0.5% over the bank’s standard interest rate.
You should aim to renew your SBM fixed deposit within two weeks (14 days) after it matures. But don’t sweat it too much; SBM Bank has a convenient auto-renewal feature to simplify things for you.
Yes, it is. Your SBM Bank FD comes with a DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover of INR 5 lakh.
If you’re renewing your FD after the 14-day grace period post-maturity, then SBM Bank will provide interest for the delay, but it’ll be at the savings account interest rate.
If your interest earnings go beyond ₹40,000 (or ₹50,000 for our senior friends), then the bank will apply TDS (Tax Deducted at Source). However, if you’re not subject to TDS, then you can submit form 15G to the bank. Senior citizens should provide form 15H to ensure no TDS deductions.