State Bank of India (SBI) offers the option of opening a flexi deposit account under it's personal banking portfolio. SBI's flexi deposit scheme is similar to recurring deposit (RD). However, in case of a flexi deposit, instead of a single fixed instalment every month, user can decide to vary his/her instalment amount and even the number of monthly within the annual sum defined, noted SBI on it's official website - sbi.co.in. The minimum instalment amount is Rs 500 for a year. The minimum deposit amount is Rs 5,000 and maximum deposit amount is Rs. 50,000 for a financial year.
In a SBI's flexi deposit account, deposits can be made anytime during a month and any number of times. The minimum tenor is 5 years and maximum is 7 years. The rate of interest is same as applicable to fixed deposits (FDs). Quarterly compound interest is also applicable, noted SBI.
Here are the interest rates applicable on deposits below Rs 1 crore, according to the bank's website - sbi.co.in:
| Maturity period (term) | Interest rate with effect from July 30, 2018 | |
|---|---|---|
| General public | Senior citizen | |
| 7 days to 45 days | 5.75 | 6.25 |
| 46 days to 179 days | 6.25 | 6.75 |
| 180 days to 210 days | 6.35 | 6.85 |
| 211 days to less than 1 year | 6.4 | 6.9 |
| 1 year to less than 2 year | 6.7 | 7.2 |
| 2 years to less than 3 years | 6.75 | 7.25 |
| 3 years to less than 5 years | 6.8 | 7.3 |
| 5 years and up to 10 years | 6.85 | 7.35 |
| (Source: sbi.co.in) | ||
In a SBI's flexi deposit account, premature withdrawal is also allowed. The rate applicable in case of premature withdrawal shall be 0.50% below the rate applicable for the period the deposit has remained with the bank, said SBI.
Tax deducted at source is also applicable, noted SBI. The penalty charges for non-deposit of monthly instalments amounts to Rs. 50 per financial year. With SBI's Flexi Deposit Scheme, customers can also get a host of facilities such as loan facility as applicable to term deposits and nomination facility.
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