Stepwise Process To Open SBI Fixed Deposit Online

How To Open SBI Fixed Deposit Online: A Stepwise Guide

3 Min Read |  April 10, 2021

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How many of you have heard your parents or other elders encouraging bank fixed deposits? 

In fact, many of you must have seen your parents advising you to do a fixed deposit as you start making your own money! 

Am I right? 

Well, Indians find fixed deposit a preferable, safe and low-risk path to gain financial security. Although the mindset has been here for a long time, it definitely has not lost its importance as well as charm in the long run! Therefore, if you also wish to gain decent returns with low risk, you must put in your savings in a fixed deposit account. 

In this blog, I will explain how to open a fixed deposit account online with the country’s largest lender, the State Bank of India. 

Advantages Of Having A Fixed Deposit Account

A fixed deposit is one of those financial investment instruments where you get a higher interest rate as compared to a savings account. As a result, your gains are pretty decent and there is no involvement of risk. 

Apart from this, there are other benefits of having a fixed deposit account and those are - 

You Get An Encouragement to Save

In the words of Warren Buffett - “ Do not save what is left after spending but spend what is left after saving.” Well, these lines perfectly tell the importance of savings. Having a fixed deposit keeps you on your toes to save money regularly as with FDs you might have to invest a lump sum amount for a time period that is fixed. 

Little to No Risk Involved

One of the most striking features of fixed deposits is that they are free from any kind of market risk or volatility. You will get a set amount (according to the rate of interest) after the maturity period ends. Therefore, investors with a low-risk appetite can go ahead with fixed deposits. 

Liquidity Is Not An Issue

Any asset is liquid when you can easily get cash in place of it and fixed deposits are liquid. Although you need to keep in mind that if you choose to withdraw the amount before the set maturity period you will have to pay a small portion of the penalty for withdrawing your money. 

Fixed Deposits Comes With Flexibility

The range of time period for which you can invest your money in fixed deposit varies from 7 days to 10 years. This flexibility in tenure serves the purpose of almost every individual who is allocating his/her money towards a fixed deposit. For instance, you plan to buy your dream car in 2 years. Well, you can go with a tax-saving fixed deposit and keep the lock-in period of 2 years, it would serve your purpose. 

How To Open Fixed Deposit With SBI?

Since the time of inception, State Bank Of India, the country’s largest lender has been helping the citizens with needed banking as well as financial services.

With its vast network of branches present in every nook and corner of India, SBI has gained a level of trust among the general public. Either you wish to walk down to any of its branches or save your energy by using its online services, SBI provides you with every possible banking facility. 

As the fixed deposit is a popular choice for Indians and it also enables a convenient option to open it online. All you require is a decent internet connection! 

Basic Requirements 

  1. A savings accounts with SBI
  2. A mobile banking account 
  3. An online banking account

Features Of Opening SBI Fixed Deposit

  1. All the senior citizens will be provided with an extra interest rate of 0.50\% if the principal amount is more than 10,000 rupees. 
  2. The minimum deposit can be 1000 rupees and there is no limit for the maximum amount.
  3. You can have a nominee and there is the availability of premature withdrawal. 
  4. Payment can be made either monthly, quarterly, half-yearly or on a yearly basis.
  5. If the principal amount is less than 5 lakh rupees then the penalty charged on withdrawal before maturity will be 0.50\%.
  6. Similarly, if the principal amount is more than 5 lakh rupees then the penalty charged on withdrawal before maturity will be 1\%.

Stepwise Procedure To Open Fixed Deposit Account Conclusion

So, let us see how you can open an online fixed deposit account, sitting comfortably inside the four walls of your home! 

  1. At first, you need to land on the net banking page available on SBI’s website by entering the required details. 
  2. Once you have logged in to the net banking section, find the ‘Deposit Schemes’ option on the homepage. Choose and click on the ‘Term Deposit’ option. 
  3. After the above-mentioned step, on the top menu try to find the option of ‘e-fixed deposit’ and click on that. Continue with choosing the type of FD you wish to open and click on ‘Proceed’. 
  4. As the next step, if you have multiple accounts then pick the account from which the money should be deducted or debited for the fixed deposit. 
  5. Now, fill in the needed details like the principal amount of the fixed deposit (in the ‘Amount’ section). At this step, if your age is above 60 years then tick mark the ‘Senior Citizen’ option. 
  6. Choose the maturity date and after reading the terms & conditions, accept it. Finally, click on the ‘Submit’ option and you will be sorted! 

Conclusion

Did you see how hassle-free was it to open a fixed deposit with SBI? 

A few clicks are all you need to begin the journey to secure the financial needs.

So, do not let your savings lie in your lockers, but try to invest it as much as possible. Let the money flow into the economy so that it can prosper in the long run.


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