SBI or State Bank of India offers Flexi Deposit Scheme which is similar to a recurring deposit (RD) account. Under SBI’s deposit scehme, instead of a fixed instalment every month, an investor can decide to change the amount of instalment every month, and even the number of monthly instalments, according to SBI’s website – sbi.co.in. However, the flexibility in the amount and number of instalments should be within the annual sum defined, noted SBI. (Also read: SBI Tax Savings Scheme: eligibility, interest rate and other details)
Here are key things to know about SBI’s flexi deposit account:
For SBI’s flexi deposit account, the minimum instalment amount is Rs. 500, and in a financial year, a person has to deposit a minimum of Rs. 5,000. The maximum amount one can deposit is Rs. 50,000 and the maximum limit of instalments is 10.
The minimum tenor is 5 years and maximum is 7 years for SBI Flexi Deposit Scheme.
Rate of Interest
The rate of interest on the scheme is same as applicable to fixed deposits (FDs). SBI offers an interest rate of 6.25 per cent to general public and 6.75 per cent to senior citizens on maturity period of 5 years and up to 10 years. The rate of interest is quarterly compounded, said the country’s largest lender.
Under SBI’s scheme, premature withdrawal is allowed. However, the rate applicable in case of a premature withdrawal shall be 0.50 per cent below the rate applicable for the period the deposit has remained with the bank, according to SBI.