SBI’s Flexi Deposit Scheme: Eligibility, Interest Rates And Other Details

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State Bank of India (SBI) offers the option of opening a flexi deposit account under it’s personal banking portfolio. SBI’s flexi deposit scheme is similar to recurring deposit (RD). However, in case of a flexi deposit, instead of a single fixed instalment every month, user can decide to vary his/her instalment amount and even the number of monthly within the annual sum defined, noted SBI on it’s official website – sbi.co.in. The minimum instalment amount is Rs 500 for a year. The minimum deposit amount is Rs 5,000 and maximum deposit amount is Rs. 50,000 for a financial year.

In a SBI’s flexi deposit account, deposits can be made anytime during a month and any number of times. The minimum tenor is 5 years and maximum is 7 years. The rate of interest is same as applicable to fixed deposits (FDs). Quarterly compound interest is also applicable, noted SBI.

Here are the interest rates applicable on deposits below Rs 1 crore, according to the bank’s website – sbi.co.in:

Maturity period (term)Interest rate with effect from July 30, 2018
General publicSenior citizen
7 days to 45 days5.756.25
46 days to 179 days6.256.75
180 days to 210 days6.356.85
211 days to less than 1 year6.46.9
1 year to less than 2 year6.77.2
2 years to less than 3 years6.757.25
3 years to less than 5 years6.87.3
5 years and up to 10 years6.857.35
(Source: sbi.co.in)

In a SBI’s flexi deposit account, premature withdrawal is also allowed. The rate applicable in case of premature withdrawal shall be 0.50% below the rate applicable for the period the deposit has remained with the bank, said SBI.

Tax deducted at source is also applicable, noted SBI. The penalty charges for non-deposit of monthly instalments amounts to Rs. 50 per financial year. With SBI’s Flexi Deposit Scheme, customers can also get a host of facilities such as loan facility as applicable to term deposits and nomination facility. 

Source: NDTV Profit