SBI or State Bank of India, the country's largest lender, offers the option of opening a flexi deposit account, which is similar to a recurring deposit (RD) account. However, in case of a flexi deposit, instead of a single fixed instalment every month, one can decide to vary his/her instalment amount and even the number of monthly instalments, within the annual sum defined, according to the bank's official website, sbi.co.in. SBI charges Rs 50 per financial year for non-deposit of monthly instalments.
Here are key things to know about SBI's flexi deposit account:
Amount: For SBI's scheme, the minimum instalment amount is Rs. 500, and in a financial year, one needs to deposit a minimum of Rs. 5,000. The maximum amount one can deposit is Rs. 50,000 and the maximum number of instalments is 10.
Tenure: The minimum tenor is 5 years and maximum is 7 years for SBI Flexi Deposit Scheme.
Rate of Interest: The rate of interest is same as applicable to fixed deposits (FDs). The rate of interest is quarterly compounded. SBI pays an interest rate of 6.85 per cent to general public and 7.35 per cent to senior citizens on maturity period of 5 years and up to 10 years.
Premature withdrawal: In SBI Flexi Deposit Scheme, premature withdrawal is allowed. However, the rate applicable in case of premature withdrawal shall be 0.50 per cent below the rate applicable for the period the deposit has remained with the bank, according to the bank's website.
Other facilities: The scheme also offers loan facility, nomination facility and passbook facility. Interest payable is subject to TDS (Tax deducted at source), said SBI.
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