Categories: Money

Exploring The Variety: A Comprehensive Guide To Types Of Fixed Deposit Schemes

Fixed deposit schemes are considered to be the safest and most guaranteed investment option. If investors have a conservative approach and don’t want to take risks with equities and mutual funds, these fixed deposit schemes are the most suitable options for them.

At SBI, one can get a variety of fixed deposit schemes that suit the requirements of varied categories of investors. If you have decided to invest INR 5 lakhs in a particular scheme of fixed deposit, but all of your corpus funds are kept in any other bank account, then you need to fill out the SBI Bank RTGS Form first to get them transferred for investing in FD purposes.

Overview of Fixed Deposits

Fixed Deposits A type of deposit that lets you earn interest by depositing a certain amount for a certain tenure.
Who Provides? All Banks and NBFCs
How to Open Both online and offline
Risk Meter No risk as it is RBI-governed
Types of FDs ·   Tax Savings

·   Reinvestment Plan

·   Multi Option Deposit Scheme

·   Annuity Deposit Account

·   Flexi Deposit Scheme

Is there any fixed deposit schemes for NRIs? Yes, NRE (Non-resident External) and NRO (Non-resident Ordinary)
Premature Withdrawal Subject to Banks’ norms (Usually, there is a penalty on the interest rate)
How to Calculate FD Interest? Use the FD interest rate calculator available over the internet.

Eligibility Criteria

Mentioned below is the list of eligible applicants who can apply for SBI Fixed Deposit schemes:

1. Resident individual

2. Parents or guardians on behalf of minors

3. Sole proprietorship

4. NRIs through their NRE and NRO accounts.

5. Hindu undivided family or HUF

6. Partnerships

7. Trusts, public and private limited organizations

Documents Required

Mentioned below is the list of documents required to apply for SBI Fixed Deposits:

1. Two passport-sized photographs

2. Address Proof- Telephone Bill, Electricity Bill, Passport, Bank Statements, etc.

3. Identity Proof- PAN Card, Voter ID, Aadhar Card, Ration Card, Driving License, and Passport.

Different Types of Fixed Deposit Schemes at SBI

Mentioned below are the different types of fixed deposit schemes available at SBI:

1. Tax Savings Fixed Deposit

Maximum Tenure 10 years
Eligibility Individuals (jointly or singly)

HUFs

Maximum Deposit Not exceeding INR 1.5 lakhs in a year.
Minimum Deposit INR 1000 (in increasing multiples of 1000 after that)
Lock-in Period 5 years
Interest Rates As applicable to term deposits of SBI
Loan Facility Not accessible
Mode of Operation Jointly (by 1 or 2 adults and a minor) or singly
Nomination Facility Available
Premature Withdrawal Not allowed till the end of the lock-in period

2. Reinvestment Plan

Maximum Deposit Period 10 years
Minimum Deposit Period 6 months
Eligibility ·         Resident Individuals (Jointly or Singly)

·         HUFs

·         Minors (either on their own or via a guardian)

·         Firms/companies

·         Local bodies

·         Government departments

Maximum Deposit No upper limit
Minimum Deposit INR 1000 (in increasing multiples of 1000 after that)
Premature Withdrawal      Available

·         For deposits lower than INR 5 lakhs, the premature withdrawal penalty is 0.5%

·         For deposits higher than INR 5 lakhs, the premature withdrawal penalty is 1%

Mode of holding Jointly or Singly
Loan Facility Up to 90% of the principal
Interest Rates As applicable to SBI term deposits with quarterly compounding
Nomination Facility Available

3. Multi Option Deposit Scheme (MODs)

Maximum Deposit No upper limit
Minimum Deposit INR 10,000 (in increasing multiples of INR 1000 after that)
Eligibility ·         Resident Individuals (Jointly or Singly)

·         HUFs

·         Minors (either on their own or via a guardian)

·         Firms/companies

·         Local bodies

·         Government departments

Maximum Deposit Period 5 years
Minimum Deposit Period 1 year
Premature Withdrawal Available

·         For deposits lower than INR 5 lakhs, the premature withdrawal penalty is 0.5%

·         For deposits higher than INR 5 lakhs, the premature withdrawal penalty is 1%

Interest Rates As applicable to term deposits of SBI
Nomination Facility Available
Loan Facility Available

4. Annuity Deposit Account

Minimum deposit amount INR 25,000
Eligibility ·         Resident Individuals (Jointly or Singly)

·         Minors (either on their own or via a guardian)

Maximum Deposit No upper limit
Minimum monthly annuity INR 1000 per month for the entire tenure
Annuity Payment Date On the anniversary date in the month following the deposit month
Deposit Period 36/60/84 or 120 months
Premature Withdrawal Yes, allowed, but only for the depositorand for deposits worth up to INR 15 lakhs. A premature withdrawal penalty will be charged per term deposits.
Nomination Facility Available
Loan Facility Allowed up to 75% of the remaining amount. Also, loan/OD is granted in specific cases only.
Interest Rates As applicable to SBI term deposits

5. Flexi Deposit Scheme

Maximum Deposit INR 50,000 in a fiscal year
Minimum Deposit INR 5,000 (minimum of INR 500 in one instance)
Eligibility ·   Resident Individuals (Jointly or Singly)

·   Minors (either on their own or via a guardian)

Maximum Deposit Period 7 years
Minimum Deposit Period 5 years
Interest Rates As applicable to term deposits of SBI
Penalty for not maintaining a minimum deposit INR 50 per year
Loan Facility Up to 90% of the principal amount
Premature Withdrawal Available

·     For deposits lower than INR 5 lakhs, the premature withdrawal penalty is 0.5%

·     For deposits higher than INR 5 lakhs, the premature withdrawal penalty is 1%

Nomination Facility Available

How to Open an SBI Fixed Deposit Account?

Mentioned below are the two different ways to open an SBI Fixed Deposit Account:

1. Online

Step 1: Log in to the SBI mobile app.

Step 2: Click on “Term Deposit” and proceed further.

Step 3: Fill in the information required like personal details, proof of identity and address, details of the nominee, etc.

Step 4: Enter the amount to be deposited along with the tenure chosen.

Step 5: You can also calculate the maturity value using the SBI FD Calculator.

Step 6: Provide the OTP received on the registered mobile number.

Step 7: Once it is authorized, the FD account will be opened.

Step 8: You can then download the acknowledgment slip for future reference.

2. Offline

Step 1: Visit any nearest branch of SBI.

Step 2: Fill out the Fixed Deposit application form with the necessary details.

Step 3: Provide the documents required.

Step 4: Now, submit the form to get the FD receipt.

How to Close an SBI Fixed Deposit Account?

Mentioned below are the steps to close an SBI Fixed Deposit Account:

Step 1: Visit any nearest branch of SBI.

Step 2: Fill out the Premature FD closure form.

Step 3: Provide the KYC documents along with the FD receipt.

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