Frequently Asked Questions
Is FD interest taxable?
Yes. FD interest is added to your taxable income. TDS of 10% is deducted if interest exceeds ₹40,000/year (₹50,000 for seniors). Submit Form 15G/15H to avoid TDS if income is below taxable limit.
What happens if I break my FD early?
Most banks charge a penalty of 0.5-1% on the applicable rate. The interest is recalculated at the rate applicable for the actual period held, minus the penalty.
Are FDs safe? What if the bank fails?
Bank FDs up to ₹5L per depositor per bank are insured by DICGC (a subsidiary of RBI). Corporate FDs are not covered by DICGC — check the credit rating before investing.
What is the difference between cumulative and non-cumulative FD?
Cumulative FDs pay interest at maturity (compounding). Non-cumulative FDs pay interest monthly/quarterly/annually. Cumulative gives higher effective returns.
Can NRIs open FDs in India?
Yes. NRIs can open NRE FDs (tax-free, repatriable) or NRO FDs (taxable in India). Interest rates and terms may differ from resident FDs.
What is a tax-saving FD?
A 5-year FD that qualifies for Section 80C deduction up to ₹1.5L/year. It has a 5-year lock-in — premature withdrawal is not allowed.
SBI Fixed Deposit
State Bank of India
India's largest bank offering competitive FD rates with sovereign backing. Available at 22,000+ branches nationwide.
Interest Rate
7.5% p.a.
Senior Citizen
8.0% p.a.
Min Deposit
₹1,000
Tenure
7
Interest Rates by Tenure
| Tenure | Interest Rate |
|---|---|
| 1 Year | 6.8% |
| 2 Years | 7.0% |
| 3 Years | 7.25% |
| 5 Years | 7.5% |
* Senior citizens get additional 0.25% - 0.50% on these rates
Key Features
- Sovereign guarantee — safest in India
- Highest branch network for easy access
- Online FD booking via YONO app
- Premature withdrawal allowed
- Loan against FD available
Pros
- Sovereign guarantee — safest in India
- Highest branch network for easy access
- Online FD booking via YONO app
- Premature withdrawal allowed
- Loan against FD available
Cons
- Rates slightly lower than small finance banks
- Minimum balance penalties on savings
SBI Fixed Deposit
SBI Fixed Deposit from State Bank of India offers competitive interest rates of up to 7.5% p.a. for general customers and 8.0% p.a. for senior citizens. With a minimum deposit of ₹1,000 and flexible tenure options, this FD is a solid choice for risk-averse investors seeking guaranteed returns.
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Eligibility
Minimum Age
18 years
Required Documents:
- PAN Card
- Aadhaar Card
- Address Proof
Safe Investment
Bank FDs are insured by DICGC for up to ₹5 Lakh per depositor per bank.