SBI Fixed Deposit (FD), Special Term Deposit, RD, Multi Option Deposit, Tax Saving Scheme: Details compared

The State Bank of India (SBI) offers a number of deposit plans to customers. The most popular deposit plans by the bank are 'SBI Term Deposits' (of fixed deposit). Other plans including, recurring deposits (RD), multi-option deposit scheme, special term deposits. Recently, the largest commercial bank of the country hiked term deposit interest rates. With the RBI expected to hike key lending rate further, the SBI may go for a further hike in FD rates.  Here we take a look at all the deposit schemes of SBI and their features (Source: Sbi.co.in)
 
SBI Term Deposit (or FD)

SBI Term Deposit offers guaranteed returns, choice of interest payout, liquidity through overdraft or premature withdrawal, nomination facility. One can make a minimum deposit of Rs 1000 for a tenure of 7 days to 10 years. There is no limit on the maximum deposit amount. As per the official SBI website, payment of interest is done at monthly/quarterly/calendar quarter basis as per the requirement of the customer. In FDs, the interest can be paid on monthly intervals on a discounted rate. It can also be paid at calendar quarter basis. The bank deducts TDS at prevalent Income tax rate if Form 15G/15H not submitted. The bank exercises auto renewal if maturity instructions are not given.

SBI Special Term Deposit:

SBI says, "This product is a variant of Term Deposits but instead of Interest being paid out at a regular frequency during the period of deposit; here it is paid out only at the time of maturity. Regular interest is added to the principal and compound interest calculated and paid thereon." One can make a minimum amount of Rs 1000 in SBI Special Term Deposit. The rate of interest is as applicable to FDs with quarterly compounding. It is paid out on maturity only. The duration of the deposit could be a minimum of 6-10 years. Premature withdrawal with penalty is avaliable. 

Other features

- -Loan/overdraft up to 90% of the deposit amount plus accrued interest, at 1.00% above the STDR rate.
- Quarterly Interest payment and credited to the Principal account for compounding.
- TDS deducted at prevalent Income tax rate is deducted if Form 15G/15H not submitted.
-Auto-renewal is exercised if maturity instructions are not given

SBI Recurring Deposit

In SBI RD scheme, a person can make a monthly deposit of minimum Rs 100 and in multiples of Rs 10 for a minimum period of 12 months to a maximum 120 months. There is a maximum amount limit a person can put in RD. The rate of interest is just the same as that applicable to the bank's term deposit. One can make a premature withdrawal, and also make the nomination. The bank also provides passbooks for RD accounts. 

SBI Multi Option Deposit

SBI Multi Option Deposit Scheme (MODS) is linked to the Savings or Current Account of the customer. It is basically a combination of Combination of Savings Bank account and term deposit and special term deposit accounts. Under MODS, a customer has to maintain a minimum account balance in the linked Savings Bank Account. One can withdraw in the multiples of Rs 1000. There is a flexibility in Period of Term Deposit 1-5 years. It also comes with nomination facility. The minimum term deposit amount for creating MOD is Rs 10,000. 
Nomination facility available.

SBI Tax Saving Scheme:

Deposits in this scheme provide tax benefits under section 80C of Income Tax Act, 1961. A person can invest in this scheme for a minimum term for 5 years and the maximum of 10 years. Premature withdrawal is not permitted before the expiry of five years from the date of issue.

Under this scheme of the SBI, one can make a minimum investment of Rs 1000 and maximum up to Rs 1.5 lakh/year. 

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SBI Fixed Deposit rates: 

*Source: official SBI website (Data taken on 15-09-2018)