SBI Fixed Deposit Scheme for 5 Years, A stable financial future is ensured by prudent savings. Fixed Deposits (FDS) are among the most well-liked and reliable options for Indians to save money. State Bank of India (SBI) stands out among the numerous institutions that offer FDs due to its dependability and alluring rewards. The SBI Fixed Deposit Scheme for Five Years will be thoroughly examined in this post, along with its characteristics, advantages, interest rates, and simple opening process.
Contents
What is the SBI Fixed Deposit Scheme?
A fixed deposit (FD) is a type of financial product in which you make a one-time payment to the bank at a predetermined interest rate for a predetermined duration of time. You get your initial deposit back plus interest when the deposit matures. The goal of SBI’s Fixed Deposit Scheme is to provide steady, safe, and secure returns. particularly the 5-year FD, which offers the advantages of long-term savings coupled with respectable returns.
Features of the SBI Fixed Deposit Scheme for 5 Years
Here are the key features you should know about:
- Tenure: Exactly 5 years (60 months)
- Minimum Deposit: ₹1000
- Maximum Deposit: No upper limit
- Interest Payout: Monthly, quarterly, or at maturity
- Premature Withdrawal: Allowed with a small penalty
- Loan Facility: You can get a loan against your FD up to 90% of the deposit amount
- Tax Benefits: Available under certain types of FDS (like Tax Saving FD)
- Nomination Facility: Available
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SBI 5-Year Fixed Deposit Interest Rates (2025)
As of April 2025, the following are the approximate interest rates for SBI’s 5-year fixed deposit:
| Customer Type | Interest Rate (per annum) |
| Regular Customers | 6.50% |
| Senior Citizens (60+) | 7.00% |
Note: Interest rates are subject to change based on RBI policy and SBI’s discretion. Always check the latest rates before investing.
Benefits of Investing in an SBI Fixed Deposit for 5 Years
Choosing the SBI FD scheme offers several advantages:
1. Guaranteed Returns
Unlike stocks or mutual funds, fixed deposits are not affected by market volatility. Your money grows safely.
2. Higher Interest for Senior Citizens
Senior citizens enjoy an additional 0.50% interest over regular rates, making it ideal for retirement savings.
3. Easy Loan Facility
In case of emergencies, you can easily avail of a loan against your FD without having to break it.
4. Tax Benefits
If you choose the SBI Tax Saving Fixed Deposit (with a lock-in period of 5 years), you can get deductions up to ₹1.5 lakh under Section 80c of the Income Tax Act.
5. Flexible Payout Options
Choose how you want to receive your interest — monthly, quarterly, or reinvested until maturity.
Types of SBI Fixed Deposit Schemes Suitable for 5 Years
Here are some options you might want to consider:
1. SBI Regular Fixed Deposit
- Best for general investors
- Flexible payout options
- Premature withdrawal is allowed with a penalty
2. SBI Tax Saving Fixed Deposit
- Lock-in period of 5 years
- No premature withdrawal
- Get tax deductions under Section 80c
3. SBI Annuity Deposit Scheme
- You deposit a lump sum
- Monthly payments (EMI-like) are given to you with principal + interest combined
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How to Open an SBI Fixed Deposit for 5 Years
Opening an SBI FD is easy and can be done through both online and offline methods.
A. Opening an FD Online via SBI Internet Banking
- Log in to your SBI net banking account.
- Go to ‘Fixed Deposit’ → ‘Open Fixed Deposit’.
- Choose e-TDR/e-STDR (Term Deposit).
- Enter the deposit amount and select the tenure as 5 years (60 months).
- Choose your interest payout option.
- Review details and submit.
B. Opening an FD Offline by Visiting a Branch
- Visit the nearest SBI branch.
- Fill up the Fixed Deposit Application Form.
- Provide required KYC documents (ID proof, address proof, PAN card).
- Deposit the amount in cash, cheque, or transfer.
- Collect your FD Receipt.
Documents Required to Open an SBI Fixed Deposit
- Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID
- Address Proof: Utility Bill, Passport, Aadhaar Card
- Recent Passport-sized Photograph
- SBI Account Number (if applicable)
Tax Implications on SBI 5-Year Fixed Deposit
1. TDS (Tax Deducted at Source)
- If your interest income exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, SBI will deduct TDS at 10%.
- To avoid TDS, you can submit Form 15G (for individuals below 60 years) or Form 15h (for senior citizens).
2. Tax Saving Fixed Deposit Option
- Under the SBI Tax Saving FD (5 years), you can claim tax benefits under Section 80c.
- However, premature withdrawal is not allowed in this scheme.
Things to Consider Before Investing in an SBI Fixed Deposit for 5 Years
- Lock-in Period: If you opt for the Tax Saving FD, remember you cannot withdraw before 5 years.
- Interest Rates: Rates are fixed at the time of booking and won’t change later.
- Premature Withdrawal Penalty: Generally, 0.50% to 1% less interest is paid if you break the FD early.
- Inflation Impact: Fixed returns mean that if inflation rises significantly, real returns could be lower.
- Loan vs. Breaking FD: Prefer taking a loan against FD instead of breaking it to preserve benefits.
Who Should Invest in SBI 5-Year Fixed Deposit?
- Conservative Investors who prefer guaranteed returns over market risks
- Senior Citizens looking for a safe retirement income
- Taxpayers wanting to save tax under Section 80c
- Individuals with Long-Term Goals like children’s education, marriage savings, etc.
SBI Fixed Deposit vs. Other Investment Options
| Parameter | SBI FD (5 Years) | Mutual Funds | Stocks |
| Risk Level | Low | Moderate | High |
| Returns | 6.5%-7.0% | 8%-12% (average) | Varies |
| Tax Benefits | Yes (only Tax Saver FD) | Yes (ELSS funds) | No |
| Lock-in Period | 5 years (Tax Saving FD) | 3 years (ELSS) | None |
| Liquidity | Moderate | Moderate | High |
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Conclusion
For individuals looking for safe, dependable, and guaranteed profits, the SBI Fixed Deposit Scheme for 5 Years is a great choice. SBI’s FD products meet all needs, whether you’re a retiree seeking guaranteed income, a parent preparing for your child’s future, or a young professional establishing a corpus. Just be sure to select the appropriate FD type based on your preferences for regular income, liquidity, or tax benefits. Before investing, always check the most recent terms and interest rates. With SBI, begin now and see your money grow safely!
Faq’s
Q. Can I take money out of my SBI 5-year FD before it matures?
Ans: Yes, however, there will be a penalty on the interest that is earned. But before five years, the Tax Saving FD cannot be broken.
Q. Is a savings account required to open an SBI Fixed Deposit?
Ans: Yes, but the process goes more smoothly and easily if you have a savings account with SBI.
Q. How does SBI Fixed Deposit interest get paid?
Ans: You can opt for quarterly or monthly instalments, or let it build up and get it when it matures.
Q. Does an SBI fixed deposit protect my money?
Ans: SBI is a government-backed bank, and the Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits up to ₹5 lakh.
Q. Is it possible for NRI clients to open a 5-year FD with SBI?
Ans: Yes, based on their requirements, through NRE, NRO, or FCNR accounts.
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