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Want To Invest In SBI Deposit Schemes? Here Are Your Options

Want To Invest In SBI Deposit Schemes? Here Are Your Options

State Bank of India or SBI, country's largest lender, offers a number of products under its personal banking portfolio. From fixed deposit (FD) account to Public Provident Fund (PPF), the banking major provides a variety of options for customer's requirements, according to its website - sbi.co.in. SBI provides interest rates in a range of 5.75-7.35 per cent across maturities in fixed deposit and recurring deposit accounts. Interest rates on fixed income instruments such as FD vary from one bank to another, depending on factors such as maturity period and amount of deposit.

Here are some of the deposit schemes offered by SBI:

1. Fixed Deposit (FD): In a FD account, depositor can park lump sum amount and avail of features like guaranteed returns, choice of interest payout and liquidity through overdraft (OD) or premature withdrawal, according to SBI's website - sbi.co.in. The bank provides interest rates to the tune of 5.75-6.85 per cent to the general public on fixed deposit (FD) up to Rs 2 crore. For senior citizens, the lender provides interest rates to the tune of 6.25-7.35 per cent on FDs up to Rs 2 crore.

2. Recurring Deposit (RD): Recurring Deposit (RD), a kind of investment plan, allows customers to save a fixed sum every month and earn an interest income on the same. In SBI RD account, customers are required to make monthly deposits of minimum of Rs 100 and in multiples of Rs 10. There is no maximum limit on the deposits. The minimum period of SBI RD is 12 months while the maximum is 120 months, according to SBI's website- sbi.co.in. Interest rates offered on RDs are the same as that on fixed deposit (FD) accounts.

3. National Pension System (NPS): NPS is a defined as a contribution pension system introduced by the Government of India as a part of pension sector reforms. It is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA), according to SBI's website. An NPS account, which can be opened by individuals between 18 and 65 years of age, offers market-linked investment returns. The interest rate on NPS contribution is dependent on the pension fund manager (PFM) the account holder chooses.

4. Public Provident Fund (PPF): A PPF account provides an investment avenue with decent returns coupled with income tax benefits, according to SBI's website. A minimum of Rs. 500 subject to a maximum of Rs. 1,50,000 per annum can be deposited in a SBI PPF account. The amount can be deposited in lump sum or in a maximum of 12 installments per year. Interest rate is determined by central government on quarterly basis. At present it is 8.0 per cent per annum. 

5. Senior Citizen Savings Scheme: Senior citizen savings scheme (SCSS) is an investment avenue that helps in generating wealth for a successful retirement life. According to SBI's website- sbi.co.in, a depositor can open the SCSS account either in individual capacity or jointly with spouse. There can be only one deposit in the SCSS account in multiple of Rs. 1,000 where the maximum amount must not exceed Rs. 15 lakh. The deposits made under Senior Citizen Savings Scheme (SCSS) earns an interest rate of 8.7 per cent per annum, from the date of deposit which is payable at the end of each calendar quarter i.e. March 31 / June 30 / September 30/ December 30.