ADVERTISEMENT
Looking To Invest In SBI Deposit Schemes? Here Are 10 Options For You
02 Dec 2018, 06:37 PM IST 
SBI revised its FD interest rates with effect from November 28, 2018.
- Fixed Deposit (FD): In a SBI 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. The lender revised its FD interest rates with effect from November 28, 2018. SBI offers a wide range of FD schemes that comes with flexible tenure options.
- Recurring Deposit (RD): According to SBI, recurring deposit is a product that provides a person with an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time. Interest rates offered on RDs are the same as that on fixed deposit (FD) accounts.
- Multi Option Deposit Scheme (MODS): SBI multi option deposit scheme (MODS) are fixed deposits (FDs) linked to the savings or current account which comes with an unique break-up facility. Unlike normal fixed deposits (FDs) which are fully liquidated anytime; one can withdraw from a MODS account in multiples of Rs 1,000 as per the fund need, noted SBI.
- Reinvestment Plan: SBI's reinvestment plan, a variant of SBI's fixed deposit account, offers the option of paying interest only at the time of maturity. Regular interest is added to the principal and compound interest calculated and paid thereon under SBI's reinvestment plan.
- SBI Tax Savings Scheme: SBI's Tax Savings Scheme, 2006 offers tax benefits for up to Rs. 1.5 lakh under Section 80C of Income Tax Act. The account opened under this scheme works like a fixed deposit (FD) and pays the same interest rate.
- Annuity Deposit Scheme: Annuity deposit enables the depositor to pay a one-time lump sum amount and receive the same in equated monthly instalments (EMIs), comprising a part of the principal amount as well as interest on the reducing principal amount,
- Savings Plus Account: SBI's savings plus account is a savings bank account linked to Multi Option Deposit Scheme (MODS), wherein surplus fund above a threshold limit from the savings bank account is transferred automatically to term deposits opened in multiples of Rs. 1000. A monthly average balance (MAB) requirement is applicable for maintaining SBI's savings plus account.
- Public Provident Fund (PPF): A PPF account provides an investment avenue with decent returns coupled with income tax benefits, according to SBI. 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.
- National Pension System (NPS): NPS account provides social security to the citizens. It is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA). An NPS account can be maintained at a minimum contribution of Rs 6,000 a year. NPS offers two types of accounts: Tier 1 and Tier 2. Subscribers must make a minimum contribution of Rs 1,000 per annum for the tier 1 account. For the tier-2 account of NPS, there is no minimum requirement of contribution, mentioned SBI.
- Basic Savings Bank Deposit (BSBD): SBI's basic savings bank deposit (BSBD) account is a type of zero balance savings account and does not require customers to maintain any particular minimum average balance. It is primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees, said SBI.