State Bank of India (SBI) offers the option of opening a flexi deposit account under it's personal banking portfolio. SBI's flexi deposit scheme is similar to recurring deposit (RD). However, in case of a flexi deposit, instead of a single fixed instalment every month, user can decide to vary his/her instalment amount and even the number of monthly within the annual sum defined, noted SBI on it's official website - sbi.co.in. The minimum instalment amount is Rs 500 for a year. The minimum deposit amount is Rs 5,000 and maximum deposit amount is Rs. 50,000 for a financial year.
In a SBI's flexi deposit account, deposits can be made anytime during a month and any number of times. The minimum tenor is 5 years and maximum is 7 years. The rate of interest is same as applicable to fixed deposits (FDs). Quarterly compound interest is also applicable, noted SBI.
Here are the interest rates applicable on deposits below Rs 1 crore, according to the bank's website - sbi.co.in:
|Maturity period (term)||Interest rate with effect from July 30, 2018|
|General public||Senior citizen|
|7 days to 45 days||5.75||6.25|
|46 days to 179 days||6.25||6.75|
|180 days to 210 days||6.35||6.85|
|211 days to less than 1 year||6.4||6.9|
|1 year to less than 2 year||6.7||7.2|
|2 years to less than 3 years||6.75||7.25|
|3 years to less than 5 years||6.8||7.3|
|5 years and up to 10 years||6.85||7.35|
In a SBI's flexi deposit account, premature withdrawal is also allowed. The rate applicable in case of premature withdrawal shall be 0.50% below the rate applicable for the period the deposit has remained with the bank, said SBI.
Tax deducted at source is also applicable, noted SBI. The penalty charges for non-deposit of monthly instalments amounts to Rs. 50 per financial year. With SBI's Flexi Deposit Scheme, customers can also get a host of facilities such as loan facility as applicable to term deposits and nomination facility.