This SBI Fixed Deposit Variant Pays Interest At Maturity Only
State Bank of India or SBI, the largest lender of the country, offers a variety of products ranging from savings and fixed deposit accounts to tax-saving and gold monetisation schemes. One of these products offered by SBI is the SBI Reinvestment Plan, which works like a fixed deposit. The difference between an SBI fixed deposit and reinvestment plan is that instead of interest being paid out at a regular frequency during the period of deposit, in SBI reinvestment plan, the interest is paid out only at the time of maturity. Regular interest is added to the principal and compound interest is calculated and paid thereon, said SBI.
Here are key things to know about SBI reinvestment plan, a variant of SBI fixed deposit:
Instalments: The minimum instalment that one is required to deposit in SBI reinvestment plan is Rs 1,000. There is no maximum limit on the investment.
Interest rates: Interest rates on SBI reinvestment plan are the same as on fixed deposits. The following are the latest SBI FD interest rates on deposits below Rs 1 crore:
State Bank of India (SBI) FD Interest Rates
SBI revised its interest rates on retail fixed deposits with effect from August 30, stated sbi.co.in. The following FD interest rates are for deposits below Rs 1 crore:
(All figures in % per annum)
| Term | Interest rate for general public w.e.f. 30.07.2018 | Interest rate for senior citizens w.e.f. 30.07.2018 |
|---|---|---|
| 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 |
Tenure: The tenure of SBI reinvestment plan ranges from six months to 10 years.
(Also Read: SBI Collects Over Rs. 2,400 Crore As Minimum Balance Penalty In FY18 From Customers)
Premature Withdrawal: A premature withdrawal facility is available on SBI reinvestment plan. For retail fixed deposit up to Rs 5 lakh, the penalty for premature withdrawal will be 0.50 per cent (all tenors); for retail fixed deposits above Rs 5 lakh but below Rs 1 crore, the applicable penalty will be 1 per cent (all tenors).
The interest shall be 0.50 per cent or 1 per cent below the interest rate applicable at the time of deposits for the period deposit remained with SBI or 0.50 per cent or 1 per cent below the contracted rate, whichever is lower. However, no interest will be paid on deposits which remain for a period of less than seven days.
TDS: SBI reinvestment plan is subject to a tax deducted at source. TDS is deducted at the prevalent income tax rate if Form 15G/15H not submitted.
Loan facility: Customers can avail a loan or overdraft up to 90 per cent of the money available plus accrued interest, at 1 per cent above the fixed deposit or FD interest rate.
Auto renewal: SBI exercises an auto renewal on the reinvestment plan if maturity instructions are not given.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
