If you want to choose from one of the best SBI fixed deposit schemes, You should know a few important points related to it. Here in this article, we will give you a brief overview of the fixed deposit schemes in SBI.
What is a Fixed Deposit?
Fixed Deposit is the safest way to increase your saved amount in a Bank. This financial service is provided by Banks and Non- Banking Financial Companies. Under a Fixed Deposit, you can save a certain amount of money for a limited time period and get additional benefits in the form of interest rates.
The interest rates are pre-determined and do not get affected by the fluctuation in interest rates with time. Fixed deposit is considered one of the best investment tools in India. Fixed deposits can be for the short term or a long term. Long-term fixed deposit is also called Term Deposit.
SBI Fixed Deposit Monthly Income Scheme (MIS)
SBI Fixed Deposit Monthly Income Scheme is a deposit made by the State Bank of India to the account of the beneficiaries. The SBI credits the extra interest rate earned from the SBI Fixed Deposit (MIS) in the SBI Bank account of the beneficiary.
SBI Fixed Deposit Monthly Income Scheme is a scheme provided by the State Bank of India. This is the best scheme for those who want to earn money on a monthly basis.
SBI Fixed Deposit Schemes
SBI offers different types of SBI fixed deposit schemes to its customers. Some of the main SBI fixed deposit schemes are mentioned below-
1. SBI Term Deposit Scheme
These term deposits can opt for a period of 7 days to 10 years. You can withdraw the deposited money prematurely but you will have to pay charges for the same.
Features of the SBI Term Deposit Scheme
- A wide range of SBI fixed deposit interest rates (2.90% -5.40%)
- The highest rate for Term Deposits is 5.40%
- You can choose the time period of maturity on your Term Deposit.
- The minimum amount for a term deposit is INR 1,000
- There is no upper limit for the amount one can deposit under the Term Deposit Scheme.
- A facility of additional interest rate is available for the senior citizens.
- There are many interest payment options provided to the scheme holder; Monthly, Quarterly, or Yearly.
- One can withdraw the fund before the maturity period of the Term deposit scheme.
- If you are a term deposit scheme holder, you can avail of an overdraft and loan up to 90 percent of the term deposit amount.
- The overdraft limit for the term deposit scheme holder is INR 25,000-5 crore.
- The interest rate on the loan would be an additional 1% than the fixed deposit rate.
- As per the Income Tax Act 1961, a tax deducted at source exists.
- A nomination facility is available for the term deposit scheme holders
- The Fixed deposit scheme will be renewed automatically after reaching the maturity period.
- A term deposit scheme holder can convert the interest payments into cumulative pay at any time.
2. SBI Tax Saving Scheme
This is one of the SBI Fixed deposit schemes provided by SBI. This SBI Tax saving scheme can be availed to get a tax exemption on the deposited amount. You can get an exemption of up to INR 1.5 lakh each year under the Income Tax Act, of 1961.
Features of the SBI Tax Savings Scheme
- You can deposit the amount from INR 1,000 – 1.5 lakh under the SBI Tax saving scheme.
- The maturity period is from 5 to 10 years
- SBI Tax saving scheme offers its scheme holder an interest rate of 5.4%
- Under the SBI Tax Saving scheme, the scheme holder gets Tax benefits under section 80C of the Income Tax Act, 1961.
- There are two types of fixed deposit accounts
- Term deposit
- Special Term deposit
- The facility for Nomination is provided by the SBI under this scheme.
- Additional interest rate benefits to the staff members and pensioners of SBI.
3. SBI Multi Option Deposit (MOD) Scheme
Key Features of the SBI Multi-Option Deposit Scheme
- The time period for the SBI Multi Option deposit is from 1 year to 5 years.
- The lowest amount you can invest in the SBI Multi option deposit is 10,000
- You can easily transfer your fixed deposit fund to your linked bank account
- In this scheme, there is no cap on the amount to be deposited
- Under this scheme Tax deducted from Source exists.
- You can withdraw money in the multiples of INR 1000 only
- One can withdraw from the SBI Multi option scheme at any given time
- Under the SBI Multi option scheme offered by SBI, a loan facility is available.
- The scheme holders are provided with a Nomination facility
4. SBI Fixed Deposit Reinvestment Plan
The SBI reinvestment plan is one of the best fixed deposit schemes in SBI. In this scheme, the scheme holder’s interest on a quarterly basis will be added to the main deposited amount (Principal amount). Additional interest will be calculated under this scheme. The SBI Fixed Deposit Reinvestment scheme plan yields high-interest benefits and maturity amounts.
Features of SBI Fixed Deposit Reinvestment Plan
- The interest income earned on the principal amount is credited to the account of the scheme holder on its maturity date.
- The applicable Interest amount is added to the principal deposited amount
- The minimum limit of the money to be deposited is INR 1,000.
- No cap for the amount to be deposited under this SBI deposit scheme.
- Scheme holders can select the maturity period from 6 to 10 years
- A nomination service is provided by SBI.
- You can take the loan on the deposited amount
- Overdraft is available up to 90 percent of the principal amount.
- You can opt for this SBI Fixed deposit scheme singly or jointly.
- You can withdraw the money before its maturity period.
- You can link your savings or current account with this fixed deposit scheme.
5. SBI Fixed Deposit Interest Rates
- The Interest rates in the SBI Fixed deposit Monthly income scheme start from 2.90% to 5.10%.
- SBI fixed deposit monthly income scheme provides an interest rate of 50 BPS
- The SBI staff members and the pensioners of SBI receive 1% more interest than the applicable rate
Features of SBI Fixed Deposit Monthly Income Scheme (MIS)
SBI Fixed deposit monthly income scheme is one of the best-fixed deposit schemes in SBI, Here are some key features of the SBI monthly income scheme on fixed deposits.
- SBI’s fixed deposit (MIS) is an annuity scheme. In this scheme, the scheme holder has to deposit a lump sum amount.
- The SBI Fixed deposit (MIS) holder receives a fixed amount on the lump sum money deposited by him in monthly installments.
- Any person including minors can take benefit from the SBI Fixed deposit monthly income scheme.
- The time period for the SBI Fixed deposit monthly income scheme is 3 years, 5 years, 7 years, and 10 years.
- In the SBI Fixed deposit (MIS), there is no cap on the amount to be deposited.
- The services for overdraft and Nomination are provided under the SBI fixed deposit (MIS).
- With the help of the SBI Monthly Income scheme on Fixed Deposit, you can get a significant amount of interest rate.
Benefits of SBI Fixed Deposit Monthly Income Scheme (MIS)
There are many benefits of the SBI monthly income scheme on fixed deposits, Some of them are mentioned below:
- SBI Fixed deposit monthly income scheme provides flexibility to the scheme holders.
- SBI fixed deposit (MIS) offers a higher interest rate
- You can withdraw the deposited money prematurely.
- The SBI fixed deposit (MIS) provides an overdraft facility.
- You can select a plan most suitable to you under the SBI Fixed deposit monthly income scheme plan
- You can avail of the loan service against the SBI Fixed deposit monthly income scheme
- SBI Fixed deposit schemes provide higher interest rates for senior citizens.
- The nomination facility is available under the SBI Fixed deposit Monthly income scheme.
- You have a flexible option and flexible investment under the SBI Fixed deposit Monthly saving scheme.
Eligibility for SBI Fixed Deposit Monthly Income Scheme (MIS)
If you want to avail one of the best fixed deposit schemes in SBI then you must know the eligibility criteria:
- Indian citizen
- A minor can open an account with a guardian
- Association/ Institution
SBI Fixed Deposit Interest Rates
Check the following revised SBI fixed deposit interest rates that would be effective from 15th February 2023:
|Policy Tenure||Revised Interest Rate for Senior Citizens||Revised Interest Rate for General Public|
SBI Fixed Deposit Calculator
Opting for a fixed deposit in SBI is the safest investment you can make. The State Bank of India functions under the government of India so you do not have additional worries as this investment is not related to any financial market.
State Bank of India provides many SBI fixed deposit schemes including SBI monthly income schemes on fixed deposits. These SBI fixed deposit schemes offer attractive interest rates so they become very appealing to people who want to earn an additional amount on their principal amount.
The tenure for other SBI fixed deposit schemes and SBI monthly income schemes on fixed deposits differ from 7 days to 10 years. Certain SBI Fixed deposit schemes like the “SBI fixed deposit monthly income scheme” come with additional monetary and tax benefits.
The SBI fixed deposit Calculator is used to calculate the maturing amount and the total interest that a scheme holder will get on his/her SBI fixed deposit schemes.
Feature of SBI Fixed Deposit Calculator
- The SBI Fixed deposit calculator can help you to choose the most profitable SBI Fixed deposit schemes.
- This SBI calculator is accurate in comparison to the manual calculation of the interest rate of SBI fixed deposit schemes.
- This calculator can help you to select the best SBI Monthly Income schemes on fixed deposits.
- You can plan long-term and short-term investment goals with the help of the SBI Fixed Deposit Calculator.
Documents Required for SBI Fixed Deposit Monthly Income Scheme (MIS)
If you want to avail of the fixed deposit schemes in SBI then you must know the documents required to open an account for the SBI Fixed deposit schemes.
- Photo identity proof ( Voter ID, Aadhaar Card, Passport)
- Passport size photograph
- Domicile proof
- Age proof
These documents are a prerequisite to open accounts for fixed deposit schemes in SBI.
SBI Fixed Deposit Monthly Income Scheme – FAQs
Q1.What is the minimum time limit for an SBI fixed deposit account?
Ans. The minimum time limit for an SBI Fixed deposit account is 7 days.
Q2. What is the minimum balance I need to deposit to open an SBI Fixed deposit account?
Ans. The minimum balance required is INR 1,000 to open an SBI Fixed deposit account.
Q3.Does SBI Provide different interest rates on fixed deposits to Senior citizens?
Ans. Yes SBI offers a higher interest rate of 0.50% than the general applicants.
Q4. Can a minor open a fixed deposit account in SBI?
Ans. Yes, a minor can open a fixed deposit account in SBI jointly with his parent or guardian.
Q5. What is the upper limit for the amount one can deposit under SBI deposit schemes?
Ans. There is no upper limit on the money one can deposit under fixed deposit schemes in SBI.
Q6. What is the highest interest rate available on the Fixed deposit schemes in SBI?
Ans. The highest interest rate for the general applicants is 6.75%. the senior citizens get the additional benefit of 0.50% on the interest rate.