If you are looking for an investment avenue that offers assured and secure returns, a Fixed Deposit (FD) has you covered. At SBM Bank, we offer Fixed Deposits through both, online and offline banking mediums. With our competitive interest rates on FD, you can meet your short-term, mid-term and long-term goals.
With SBM Bank FDs, you can enjoy attractive interest rates, flexible tenures and premature FD closure. Senior citizens can plan for their retirement, thanks to the higher returns and security. You can opt for an FD scheme of your choice as well as provide the preferred maturity instructions. You can avail of tenures ranging from seven days to 10 years. With our tax-saving FD offerings, you can claim up to INR 1,50,000 in tax deductions.
Fixed Deposit Calculator
Enjoy tax benefits of up to
₹1,50,000
with our Tax saver FDs
Grow your investments with our Competitive Fixed Deposits!
Multiple
Onboarding Modes
Open a Fixed Deposit online with SBM Bank from the comfort of your home, with our internet banking and mobile banking platforms. Simply log into your online banking platforms and navigate the Fixed Deposit option. Select your preferred tenure, deposit amount and deposit type. Alternatively, you can visit our SBM Bank branch to open a Fixed Deposit offline.
Flexible
Tenures
SBM Bank offers FD tenures starting from 7 days for up to 10 years. At the time of FD booking, you can select a tenure of your choice, per your short-term, mid-term or long-term financial goals. Fixed tenure of five years is applicable to our tax-saving FDs.
Competitive
Interest Rates
Convenient
Financing
You can instantly transfer funds from your SBM Bank Savings Account to open an FD online. You can finance your FD via your internet banking and mobile banking platforms. For account opening at bank branch, you can opt for cash or cheque payments.
Choice Of FD
Schemes
You can choose whether you want your interest payouts to be on a monthly or quarterly basis. With the compound interest route, you can earn interest on interest. You can reinvest both, the interest earned and the principal amount, and continue to enjoy the perks of FDs.
Manage Maturity
Instructions
You can opt for either auto renewal of only principal amount or auto renewal of both interest and principal amount. The bank will renew the FD for the same tenure at the prevailing interest rate at the time of renewal. Alternatively, you can choose to close the FD and receive the entire maturity amount in your Savings Account.
Premature FD
Closure
With the callable FD options, you can close your FD prematurely. This way, you can meet your emergency fund requirements immediately. A penalty shall be applicable to premature FD withdrawals.
Nomination Facility
Available
You can appoint a nominee to receive your FD proceedings. In case the nominee is a minor, you can appoint a non-minor individual to receive the amount on behalf of the minor applicant. Such individuals must be lawfully entitled to act of behalf of the minor.
Get Loan
Against FD
To meet your financial needs without breaking the FD, you can opt for Loan against Fixed Deposit. With this facility, you can pledge your FD as a security and receive a percentage of the FD amount as a loan from the bank. With SBM Bank, you can avail of a loan against your FDs at any time, with tenures equivalent to or less than the residual FD tenure.
Open FD Jointly
You can open an SBM Bank FD jointly with up to two additional individuals. You can also select the mode of operation for your FD, whether on ‘either or survivor basis’, ‘anyone or survivor basis’, or ‘former or survivor basis’. You can also open an FD jointly with a minor.
FDs can help you in your journey of wealth creation.
Here is why you should invest your idle funds in Fixed Deposits:
FD interest rates are not market-dependent. Once you select your tenure, the interest rate does not change for that tenure. If you opt for the compounded interest route, your returns can increase substantially. At the time of FD booking, your returns for the selected tenure will be displayed on the internet or mobile banking platform. You can also use our Fixed Deposit Return Amount calculator to find out the exact interest earnings.
Our Fixed Deposits can serve as an ideal emergency fund for urgent money requirements. You can withdraw the FD amount at any time. With FDs, your surplus funds can generate income for you. You can start with small investments and build an emergency fund over time. If your tenure is coming to an end, you can reinvest the principal and interest amount and continue savings towards the emergency fund.
At SBM Bank, we offer an additional 0.5% per annum interest rate to Resident Indian senior citizens. This means, as a senior citizen, you can earn up to 8.5%* per annum interest rate by investing in our FDs . Investing in FDs early on can also help you build a retirement fund. Additionally, FDs can serve as income source after retirement, thanks to their regular interest payouts. You can choose from various payout options, whether monthly, quarterly, half-yearly or yearly.
Opt for our tax-saving Fixed Deposits to reduce your tax liability. With such FDs, under section 80C of the Income Tax Act, 1961, you can claim a deduction of up to INR 1,50,000 per financial year. These FDs come with a 5-year lock-in period, facilitating a way for you to save for the long-term. SBM Bank offers flexible interest pay-out options on a monthly and quarterly basis for such tax-saving FDs.
At SBM Bank, your deposits not only earn returns, but we ensure that they stay secure. Your FDs are insured by the Deposit Insurance and Credit Guarantee Corporation of India (DICGC). DICGC is operated by the Reserve Bank of India (RBI) and covers your principal and interest amount for up to INR 5,00,000.
The following entities can open a Fixed Deposit account with us:
Senior citizens above 60 years of age can open a senior citizen FD. Minors can open an FD with their parents or guardians.
The documents required to open an FD are as follows:
With SBM Bank, you can open a Fixed Deposit online via internet banking, mobile banking or the nearest SMB Bank branch. Book an FD from the comfort of your home or on the go with SBM Internet Banking or SBM Mobile Banking.
Book an FD offline You can visit your nearest SBM Bank branch to open a Fixed Deposit account. Ensure you carry the required documents – photos and KYC documents. One of our bank representatives will assist you in filling out the application form and opening your FD. You can pay the FD amount via cash or cheque, by debit to your Savings Account or through wire transfer.
A Fixed Deposit or an FD is an interest-generating deposit account where you can park funds for a fixed tenure, at a fixed interest rate. The FD matures at the end of the tenure, after which you can choose to close it or reinvest the principal and interest amount. You can withdraw funds from your FD before maturity, but a penalty will be applicable.
You can close your FD once it matures. In this case, the bank will transfer the principal and interest amount to your Savings Account and close the FD Account. On the other hand, you can auto renew the FD, where your principal amount and interest amount get reinvested for the same tenure as before. The interest rate applicable for auto renewal will be the prevailing interest rate at the time of renewal. Also, you can select the option to only renew the principal amount, while the interest earnings are transferred to you.
Yes, it is. As per income tax rules, interest earned on FD is treated as ‘income from other sources’ for income tax computation.
TDS, or tax deducted at source, is deducted by banks on interest income. If your FD interest exceeds INR 40,000, the bank will deduct TDS at 10%. If you have not provided your Permanent Account Number, the TDS applicable would be at the rate of 20%. For senior citizens, the threshold is INR 50,000. Note that if your income does not exceed the basic exemption limit, you can request the bank to not deduct TDS. For that, you are required to submit forms 15G or 15H.
Depending on your tenure, you will either earn simple interest or compound interest. In the case of the former, you will earn interest only on the principal amount. For compound interest, interest on the principal amount gets added to the principal amount, and interest is charged on the new principal amount. Simple Interest = P X R X T For an INR 1,00,000 principal amount for 2 years at 7% interest rate, your simple interest will be INR 14,000. Compound Interest = P {(1 + R/100)T – 1} Continuing with the above example where the interest is compounded monthly, you will earn INR 14,980. Here, P is the principal amount, R is the rate of interest and T is the tenure in years. A time-saving way to calculate FD interest is by using the FD Interest Calculator. All you have to do is enter the amount, interest rate and tenure – the calculator automatically computes the interest amount.
Yes, you can. You can change your maturity instruction settings before your FD matures. You can change the settings via SBM Internet Banking or SBM Mobile Banking.
Yes, you can. Typically, there is no limit on the number of FDs you can open.
SBM Bank FDs come with numerous perks. To top it all, we will soon offer an Secured Credit Card against your Fixed Deposit. You can get a Credit Card against FD without having to meet additional prerequisites, all you need is an FD Account. As a new customer, you can apply for an Secured Credit Card + Fixed Deposit + Savings Account as a combination product via a seamless digital experience.
The bank does not require additional documents to issue Credit Cards against your Fixed Deposit.
You do not have to pay a Credit Card joining fee to avail of a card with your FD.
The Secured Credit Card offers access to a range of lifestyle benefits and offers across top
You can get an FD Credit Card, regardless of your credit score standing. A Credit Card against an FD can help you build or improve your Credit Score.
Once you book your FD, you can apply for a Credit Card against it with quick approval.
SBM Bank India offers a diverse range of Co-Branded Secured Credit Cards.
