State Bank of India is the leading public sector bank that has pioneered the Indian banking domain with its customer friendly financial services. All sort of financial needs are taken care of to ensure the customer satisfaction. The bank aims at benefiting the customers and provides good returns on the deposits. It promotes the habit of savings in people by providing fixed deposits at an attractive rate of interest.
The SBI FD interest rate 2016 ranges from 5.50% p.a. to 7.00% p.a. for general public. However, the bank provides an extra interest of 0.50% to the senior citizens. The SBI FD interest rates vary as per the tenure opted by the customer. The customer can make a deposit for the minimum time period of 7 days. However, the bank accepts the deposit for the maximum tenure of 10 years.
SBI Fixed Deposit Scheme:
The bank has drafted multiple SBI Fixed Deposit Schemes to cater the variant needs of the people. The investor has the flexibility to decide and invest in the scheme that he considers is best for him. The fixed deposits schemes offered by the bank are:
- SBI MODS
- SBI Annuity Deposit
- SBI Reinvestment Plan
- SBI Tax Savings Scheme
SBI MODS: Multiple Option Deposit Scheme (MODS) is the deposit plan in which the FD account holder has the freedom to withdraw the amount in multiple of ₹ 1,000. The remaining amount in the deposit account yields interest at the same interest rate. The minimum amount required to open the account is ₹ 10,000. The tenure period of the deposit ranges from 1 year to 5 years. The account holder can avail loan against the deposit and can file nomination.
SBI Annuity Deposit: The account under annuity fixed deposit scheme is opened with the minimum amount of ₹ 25,000. There is no maximum limit on the deposit. The deposit can be made for the period 36, 60, 84 or 120 months. Under this scheme, the depositor can pay a lump sum amount and receive the same in the form of EMIs, which is the total of the principal amount and interest on the reducing principal amount.
SBI Reinvestment Plan:In reinvestment plan, the interest receivable is quarterly compounded and added to the principal amount. Then the interest is calculated on the new principal and is paid at the time of maturity. This deposit can be opened with the minimum amount of ₹ 1,000 for the tenure ranging from 6 months to 10 years. The depositor can close the deposit before the expiration date but in such case, the interest will be paid at penal rates. The depositor can take a loan against FD up to 90% of the deposit amount.
SBI Tax Savings Scheme: The customer can avail the benefit of saving taxes on the fixed deposits by investing the minimum amount of ₹ 1,000 for the minimum period of 5 years. The maximum investment amount is limited to 1,50,000. The investor can not withdraw the money before the lock-in period of 5 years and the facility of loan against tax saver deposit is not available.
The investor can compare the gains on various schemes and select the tenure and investment amount by using the SBI Fixed Deposit Calculator. The calculator helps in knowing the maturity value. It calculates the total yield on the deposit remaining with the bank. So, the customer can choose SBI Fixed Deposits for the tenure that will help him accomplish his financial goals.