SBI FD Rates: The Reserve Bank of India has recently increased the non-callable FD deposit limit from Rs 15 lakh to Rs 1 crore. Banks generally offer higher interest rates on non-callable FDs because your money remains locked-in for a fixed period.
Note that premature payment is not allowed under such schemes. State Bank of India (SBI) offers the best non-callable FDs with high interest rates. Let us know what is its minimum payout amount.
Minimum amount to invest in SBI Best
- The minimum amount to invest in SBI Best is Rs 1 crore, although earlier this investment amount was Rs 15 lakh.
- Central bank SBI issued a notification on October 26, 2023, in which it said that as per these instructions, banks have been allowed to offer Domestic Term Deposits without the option of premature withdrawal.
- Premature withdrawal facility will be available for Rs 15 lakh and less. Additionally, banks have also been permitted to offer differential rates of interest on TDs depending on the tenure, non-callability of the deposit and the size of the deposit.
What was the decision
- The first thing that came to light is that the minimum amount for non-callable FD can be increased from Rs 15 lakh to Rs 1 crore.
- This means that all Domestic Term Deposits accepted from individuals for amounts of Rs 1 crore and below will have premature withdrawal facility.
- These instructions will also be applicable for Non-Residential (External) Rupee (NRE) deposits / NRO deposits.
What will be the interest rates?
- The bank offers 7.4 percent interest rate on SBI best FD for a tenure of two years. The interest rate for a period of one year has been fixed at 7.10 percent.
- Whereas senior citizens will get 0.50 percent higher interest rate. Senior citizens will get an interest rate of 7.9 percent on deposits maturing in two years. They will get an interest rate of 7.6 percent for one year.
