I want to make a Fixed deposit (FD) of 1 lakh Rupees on the name of my son in State Bank Of India . Would you tell me what is Rate of Interest given by State Bank Of India on Fixed Deposit ? Is there any other benefit ? Is it compulsory to make a PAN card of my son to save TDS ?

SBI (State Bank of India) offers some of the most attractive and sought after Fixed Deposit (FD) schemes in India. The interest rates on FDs are subject to change depending on a bank’s operating and liquidity needs.

Short-term Fixed Deposit Rates
SBI offers short-term deposits from interest rates of 5.25% p.a. – 7.25% p.a., quarterly compounded.

The shortest term available is 30 days, which offers a 5.25% annual rate of interest. The rate of interest increases with an increase in the term of the FD.

For deposit periods of 60, 90 and 120 days, the rate of interest is at 6.5% p.a.

If one invests in a FD for 6 or 9 months, then the rate of interest can earn are 6.75% & 7.0% p.a. respectively.

The FD with deposit tenure of one earns an interest of 7.25% p.a.

Considering a quarterly compounding frequency, the effective or annualised interest is quite competitive and a profitable short-term investment

Medium and Long-term Fixed Deposit Rates
Fixed Deposits that feature tenures of more than a year, up to 5 years, have interest rates ranging from 7.0% p.a. -7.5% p.a.

The term could be for 1.6, 2, 3, 4, and 5 years. While the rates for these tenures over around 7.0% p.a., the rate on a 1.6 & 2-years FD will give an added advantage of an extra 0.5% making the interest 7.5% p.a.

These rates are compounded quarterly and give customers an effective yield that delivers attractive returns.

Duration of Deposit Regular Deposit (%)

7 days to 45 days 5.5
46 days to 179 days 6.5
180 days to 210 days 6.75
211 days to less than 1 year 7
1 year to 455 days 6.9
456 days to less than 2 years 6.95
2 years to less than 3 years 6.85
3 years to less than 5 years 6.5
5 years and up to 10 years 6.5