State Bank of India offers various saving schemes to its customers, one of them is flexi deposit scheme. SBI flexi deposit scheme is a sort of recurring deposit (RD) facility, but unlike an RD account, where you have to deposit a fixed instalment every month, the deposit installment in SBI flexi deposit scheme can vary. Deposits in the SBI flexi scheme can be made any number of times during a year and any time during a financial year, within the annual maximum limit. SBI also offers account holders the facility to open a flexi deposit account online by using internet banking facility.
Here is all you need to know about the SBI flexi deposit scheme:
1) The amount required for deposit in a single instance is ₹500 or in multiples thereof, according to SBI’s website. In a financial year, the minimum deposit amount required in the SBI flexi deposit scheme is ₹5,000. The maximum deposit allowed in the SBI flexi scheme amount is ₹50,000 in a financial year.
2) SBI flexi deposit scheme has a minimum deposit period of 5 years and maximum 7 years.
3) SBI currently pays an interest rate of 6.25% per annum on fixed deposits maturing in one year and seven years and more. So, SBI flexi deposit scheme will fetch an interest rate of 6.25%. Just like the term deposits, senior citizens get a higher interest rate on SBI flexi deposit schemes as well. These deposits will fetch them interest ranging from 6.75% to 6.90%.
4) Premature withdrawal facility is available in SBI flexi deposit scheme . For deposit up to ₹5 lakh, the penalty for premature withdrawal will be 0.50% (all tenors). For deposit above ₹5 lakh, applicable penalty will be 1% (all tenors).
5) Tax deduction at source applicable as per Income Tax Rules. Form 15G/H can be submitted by the Depositor to get exemption from tax deduction as per Income Tax Rules.