By Stable Money / January 12, 2024
Apart from regular FDs, SBI has several special-term deposit options for its customers. These special FD schemes are designed with the purpose of catering to varying customer requirements. Some of such special FD schemes include SBI Sarvottam, SBI Tax-saving Scheme, and SBI Special Term Deposit, also known as SBI Fixed Deposit Double Scheme.
Let’s discuss the benefits of an SBI FD Double Scheme, its interest rates, eligibility, features and other related details.
Table of Contents
What is the SBI Fixed Deposit Double Scheme?
SBI FD double scheme is one of the special variants of SBI term deposits with a difference in the pay-out of interest. Unlike a regular FD, interest payout takes place only on maturity. Interest accrued is added to the principal, generating compounding benefits.
Interest Rates of SBI Fixed Deposit Double Scheme 2024
Listed below are the latest interest rates of state bank of india fixed deposit double scheme.
| Tenure | General Citizen (%) | Senior Citizen (%) |
|---|---|---|
| 7 days to 45 days | 3.00 | 3.50 |
| 46 days to 179 days | 4.50 | 5.00 |
| 180 days to 210 days | 5.25 | 5.75 |
| 211 days to less than 1 year | 5.75 | 6.25 |
| 1 Year to less than 2 years | 6.80 | 7.30 |
| 2 years to less than 3 years | 7.00 | 7.50 |
| 3 years to less than 5 years | 6.50 | 7.00 |
| 5 years and up to 10 years | 6.50 | 7.50 |
Eligibility Criteria for SBI FD Double Scheme
Anyone of the following is eligible for the State Bank of India Fixed Deposit Double Scheme:
- Applicant Type: Indian Residents (Singly or Jointly), Firms, Joint Stock Companies, Karta of HUF, Local Bodies or any Government Department.
- Age: An applicant’s age must be at least 18 years. A minor can also be eligible, only under the supervision of his or her parents/guardians.
Features of SBI FD Double Scheme
Here are some features of an SBI FD Double Scheme:
- The minimum tenure of this type of SBI deposit is 6 months, while its maximum tenure is 10 years.
- The minimum amount required to book this special deposit is ₹1,000, with no upper limit.
- Deposit amount of more than ₹2 crore is considered as bulk.
- Deposit amount (along with interest) of more than ₹20,000 will not be paid on a cash basis.
- TDS is applicable as per IT rules. Depositors must submit Form 15G/H to claim a deduction or exemption as per income tax norms.
- One can easily avail of this special term deposit from any SBI branch in the country.
Advantages of State Bank of India Fixed Deposit Double Scheme
The interest rates of the SBI fixed deposit double scheme range from 3% to 7.5% per annum, along with compounding and other benefits. Knowing the advantages can help you get a better idea of the same.
- There is enough flexibility on the deposit amount, allowing you to make a suitable investment per your goals and objectives. There is no restriction on the deposit being too huge or less.
- Its account opening procedure is convenient and hassle-free. You can open a Fixed Deposit Double Scheme through Internet Banking in a matter of a few clicks. Moreover, you can do the same by visiting your nearest SBI branch.
- You can liquidate this deposit even before the maturity date, but certain penalty charges will apply. Such as a penalty of 0.5% will be levied on amounts up to ₹5 lakhs and a 1% penalty for amounts above ₹5 lakhs across all tenures if withdrawn prematurely.
- You can add a nominee while opening this FD account or even at a later date, and you can also change your nominee any time before the maturity date.
Conclusion
To conclude, the SBI FD Double Scheme offers depositors the maximum benefit of its compounding power every quarter, payable only at the time of maturity. If invested for a long tenure, this FD scheme can help account holders double their principal value in a disciplined way.Although an attractive choice, make sure to read the penalties for premature FD withdrawals and other important terms before making any significant investments.
FAQs
Is the interest rate the same for both regular term deposits and SBI Fixed Deposit Double Scheme?
Yes, the interest rate is the same for deposit double scheme and regular term deposit.
How do you liquidate the deposit on maturity?
Upon producing the term deposit certificate and ID proof, you can liquidate this deposit on maturity via Internet banking or by visiting an SBI branch. However, you must keep in mind that cash withdrawals are restricted for maturity value amounting ₹20,000 or more.
Will my investment in the SBI fixed deposit double scheme be twice in 5 years?
The time taken to double the principal amount depends entirely on the interest rate, investment amount and tenure. You can calculate the same using the rule of 72, where you will have to divide 72 by the rate of interest.
Can I avail of a loan against the SBI Fixed Deposit Double Scheme?
Yes, you can avail of a loan against the SBI FD double scheme at an applicable margin of 10% in case the residual tenure is 36 months to 60 months.
What happens when the primary account holder dies before the maturity of the SBI FD Double scheme?
In case the primary account holder dies before the maturity of the SBI FD double scheme, the bank transfers all the closure proceeds of such an FD investment to the nominee’s bank account.
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
