SBI or State Bank of India, the country's largest lender, offers Flexi Deposit Scheme which is similar to a recurring deposit (RD) account. In SBI's flexi deposit account, instead of a fixed instalment every month, a person can decide to change the amount of instalment every month, and even the number of monthly instalments, according to SBI's official website, sbi.co.in. However, the flexibility in the amount and number of instalments should be within the annual sum defined, said the bank.
Here are key things to know about SBI's flexi deposit account:
Amount: For SBI's flexi deposit account, the minimum instalment amount is Rs. 500, and in a financial year, an investor 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). SBI pays an interest rate of 6.60 per cent to general public and 7.10 per cent to senior citizens on maturity period of 5 years and up to 10 years. The rate of interest is quarterly compounded.
Premature withdrawal: In SBI's scheme, premature withdrawal is allowed. However, the rate applicable in case of a 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 lender's portal.
Other facilities: The scheme also offers loan facility, nomination facility and passbook facility.