SBI or State Bank of India offers a special type of account similar to a recurring deposit (RD). In SBI's Flexi Deposit account, instead of a fixed instalment every month, an investor can decide to change the amount of instalment every month, and even the number of monthly instalments, according to SBI's corporate website, sbi.co.in. The alteration - or flexibility - in the amount and number of instalments, however, is determined by the annual sum defined.
Here are key things to know about SBI's Flexi Deposit account:
1. Amount: For SBI's Flexi Deposit account, the minimum instalment amount is Rs. 500, and in a financial year, a person needs to deposit a minimum amount of Rs. 5,000. The maximum amount one can deposit is Rs. 50,000 and the maximum number of instalments is 10, according to the SBI website. SBI charges a fee of Rs 50 per financial year for non-deposit of monthly instalments, mentions the country's largest bank.
2. Tenure: The minimum tenor is five years and maximum is seven years for SBI's deposit scheme.
3. Rate of Interest: The rate of interest is same as term deposits, and compounded on a quarterly basis. 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 five years and up to 10 years.
4. Premature withdrawal: Under SBI's scheme, premature withdrawal is allowed. However, the rate applicable in case of premature withdrawal will be 0.50 per cent below the rate applicable for the period the deposit has remained with the bank, according to the SBI portal.
5. Other facilities: The scheme offers a loan facility as applicable to term deposits, a nomination facility and also passbook facility. The interest payable is subject to TDS (tax deducted at source), according to SBI.