Fixed deposit rates have gone up in the last year. This factor is making it one of the most lucrative investment options today. FDs have been popular for decades because of many reasons. First, they give an assured return, and secondly, the interest rate offered is known to the depositor in advance. These factors help them plan for future expenses.
SBI fixed deposit schemes have extended to customers looking to invest their savings in a safe investment instrument with a guaranteed return. The bank has started to offer different types of FD schemes online and offline with varied features and benefits to customers and encompassing the needs of different types of investors.
This has led a large number of people to invest in the schemes offered by SBI. Since the bank has come up with a unique set of schemes to suit each investor, different features, investors know what they are getting into.
The Different Types of Schemes SBI offers
1. SBI Term Deposit
SBI term deposit is a simple fixed deposit account that has the following features.
It has a time period of seven days to 10 years with a minimum deposit of rupees thousand. An investor can avail of a loan for up to 90% of the deposit amount. An investor can also prematurely withdraw up to 5 lacs with a 0.5% in penalty and for more than 5 lacs a 1% penalty. This scheme is also auto renewable with nomination facilities. The account holder Can convert a regular term deposit to a cumulative term deposit.
2. SBI Tax Saving Scheme
SBI tax-saving fixed deposit scheme is designed for tax exemption. An investor can invest in the fixed deposit and avail deduction for up to rupees 1.5 lacs for a year under section 80c of the Income Tax Act. You can find the features of the scheme below here.
The scheme varies from a tenure of 5 to 10 years. The minimum deposit allowed in the scheme is rupees thousand, but it also does not have an overdraft facility or a premature withdrawal facility. One can use a tax calculator to check how much tax they are saving with this scheme and for normal FD returns, the SBI FD calculator is the best tool available online.
3. SBI Fixed Deposit Reinvestment Plan
A reinvestment scheme is when quarterly interest is added to the principal amount and is further calculated as interest. Interest is reinvested as a deposit amount which gives higher interest returns and returns on the maturity amount. The features of the scheme have been given here below.
The schemes range from 6 months to 10 years with a minimum deposit of rupees thousand. An overdraft can be applied for up to 90% of the amount. This scheme can be auto-renewed. The interest on the scheme is paid quarterly and is added to the principal amount for compounding. There is an option to link the account to a current or savings account.
4. SBI MODS
SBI multi-option deposit amalgamation of fixed deposit in a savings account. The scheme allows withdrawal to be made in multiples of rupees thousand and the remaining would keep on earning interest. The features of the scheme are as follows.
This scheme ranges from over 1 year to less than 5 years. The minimum deposit amount for the scheme is rupees 10000. The withdrawal can be done in multiples of thousands. An overdraft can be availed on the scheme. This SBI Scheme offers the facility for nomination, so it is also linked to the savings or the current account of the account holder.
5. SBI WeCare or SBI Annuity Deposit Scheme
The SBI annuity scheme is when a lump sum amount is deposited and it is paid in terms of equated monthly instalment or EMI. The features of the schema are as follows.
The tenure of the scheme ranges from 36, 60, 84, to 120 months. The minimum deposit that can be made in this scheme is rupees 25000. An overdraft can be availed for up to 75% of the balance amount of the scheme. An investor received the amount he deposits in this scheme as EMI. There is a nomination facility available on the scheme.
Investing in SBI FD schemes has a lot of benefits along with interest rates on the fixed deposit. The benefits include:
- Higher interest rates.
- The different amounts can be invested in different schemes for different tenures.
- They have a safe agency fund investment option.
SBI is a leading lender in the financial market today, and you can easily open an FD account without any hassles. Though fixed deposits have traditionally been one of the best ways we follow to invest money, we have not fully established the best parts of it. With the State Bank of India and its fixed deposits, we can have the opportunity to experience all of the benefits fixed deposits can offer.