OPEN APP
Home >Money >Personal Finance >SBI flexi deposit scheme interest rate, minimum deposit explained in 5 points

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.


Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout