State Bank of Travancore Fixed Deposit Rate

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State Bank of Travancore Fixed Deposit Rate

State Bank of Travancore Fixed Deposit Rate - FD Rate in India

The first choice for any conservative investor in India is a Fixed Deposit (FD) account. A fixed deposit account is a traditional form of savings which has a higher rate of interest than a regular savings account. It is considered a safe and reliable form of investment option as it promises a guaranteed return and is free from volatility / market risks. If you have some idle money, opening an FD account is the simplest way to earn a fixed interest income.

FD is a popular mode for investment with the general population in India, as it offers a guaranteed return as opposed to other forms of riskier investment avenues. The benefit to opening an FD account is that you can choose how much you want to deposit and for what time period you want to deposit the amount.

Fixed deposits tenures usually range from a period of seven days to as long as ten years. The banks are free to set their own interest rates, which depends on the deposit amount and the tenure among other factors. In India, the interest rate generally ranges from 4% to 8% per annum.

Once the deposit matures, the bank credits the principal amount along with the interest earned to the bank account specified on the application form when the FD is opened. The documentation process is hassle-free and simple, making it easy even for a first-time investor.

Apart from banks, NBFCs and corporates too offer fixed deposits.

State Bank of Travancore Deposit Rates

As mentioned before, the rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. The general rule of thumb is, the longer the term of deposit, the higher the rate of interest. But a bank may also offer a lower rate of interest for a longer tenure if the rates are expected to fall in the future.State Bank of Travancore Interest Rates typically range from 5% - 10% per annum.

State Bank of Travancore FD rates

Following is an overview of State Bank of Travancore Term Deposit Rates and State Bank of Travancore Short-Term Fixed Deposit Interest Rates.

State Bank of Travancore Interest Rates on Fixed Deposits 2015 – 2016:

(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with State Bank of Travancore directly.)

Rupee Deposits under Domestic, NRO segments Deposit of below Rs 1 crore
Period Interest Rate (%) per annum
7 days to 45 days 5.50
46 days to 179 days 6.50
180 days to 210 days 6.75
211 Days to less than 1 Year 7.00
1 Year to 455 Days 7.15
456 Days to less than 2 Year 7.25
2 years to less than 3 years 7.25
3 years to less than 5 years 7.00
5 years and up to 10 years 7.00

Annualised Rate Rupee Deposits under Domestic, NRO segments

Ordinary
Senior Citizen
Period Percentage per annum Annualised rate Percentage per annum Annualised rate
1 year 7.15 7.40 7.60
2 years 7.25 7.72 7.50 8.01
3 years 7.00 7.71 7.25 8.01
4 years 7.00 7.99 7.25 8.32
1827 Days 7.00 8.29 7.25 8.64
6 years 7.00 8.60 7.25 8.98
7 years 7.00 8.93 7.25 9.33
8 years 7.00 9.27 7.25 9.70
9 years 7.00 9.63 7.25 10.10
10 years 7.00 10.01 7.25 10.51

State Bank of Travancore FD Interest Rates for Senior Citizens

State Bank of Travancore offers special Senior Citizen FD Rates which is generally marginally higher than the rates applicable on a regular FD and provide seniors with that extra buffer for their retirement years. As of now, the State Bank of Travancore Senior Citizen FD rate of interest is 0.25% higher for all domestic term deposits up to 10 years. Resident Indian senior citizens will get the additional interest on deposits across all buckets. Also note that this is not applicable for NRE/NRO Deposits.

Period Interest Rate (%) per annum
7 days to 45 days 5.75
46 days to 179 days 6.75
180 days to 210 days 7.00
211 Days to less than 1 Year 7.25
1 Year to 455 Days 7.40
456 Days to less than 2 Year 7.50
2 years to less than 3 years 7.50
3 years to less than 5 years 7.25
5 years and up to 10 years 7.25

How to Calculate State Bank of Travancore Fixed Deposit Interest

You can use online FD calculators to help compute the amount of interest you will earn on a certain principal amount. There are many online websites that have easy-to-use FD calculators that allow you to instantly calculate the interest earned. You just need to enter the deposit amount, the rate of Interest, and the tenure; and the calculator will present you with a breakup of the amount earned at maturity and the interest earned.

Using such online resources is very easy and comes in handy while deciding on the principal amount for investment. You can use the calculator any number of times to help arrive at your final principal amount. Using an online resource helps in determining how much you want to save and invest and eliminates all the hassles of manual calculation.

You can also calculate the interest earned and the maturity value on the principal amount using the following formula.

Calculate State Bank of Travancore FD Rate

A = P x (1 + r/n)nt

I = A - P

Where

A = Maturity Value

P = Principal Amount

r = Rate of Interest

t = Number of Years

n = Compounded Interest Frequency

I = Interest Earned

State Bank of Travancore FD Premature Withdrawal Penalty

Opening an FD account comes with a catch: once you deposit the amount, you cannot withdraw from it, like you can in a savings account. You can break the FD, i.e., make a premature withdrawal, but only upon payment of a penalty. Breaking an FD might also affect the interest payout.

If you face an emergency, for instance a medical crisis, you can withdraw the money from the deposit prematurely. The bank typically charges a nominal penalty which is communicated to you at the time of application of FD Deposit. Keep in mind that no interest will be paid if the premature withdrawal takes place within 7 days.

You can also choose to avail loan against your deposit. State Bank of Travancore offers loans up to 90% of the deposit, with an interest rate of 1% above the deposit rate. Check with the bank for the prevailing rates at the time of application of the FD so that you are prepared, should an emergency arise.

State Bank of Travancore FD – FAQS

Who is eligible to apply for a fixed deposit account?

Any Resident Individual – individually, or jointly with two or more people are eligible to book an FD with SBT. Also eligible to open an FD account are Minors, Associations, Clubs, Societies, Partnership Firms, Trusts, etc.

What is the duration of an FD account held with State Bank of Travancore?

You can opt for deposits for periods of 7 days to 120 months.

What is the minimum amount I can deposit in an SBT FD account?

The minimum amount required to open an FD account is Rs. 1,000 and in multiples of Rs. 100 thereof.

What is the interest payout?

Interest is normally paid quarterly, half yearly, or yearly. Monthly payment can be had at discounted rates.

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