SBI or State Bank of India, the country’s largest lender, offers the option of opening a flexi deposit account under its 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, one can decide to vary his/her instalment amount and even the number of monthly instalments, within the annual sum defined, according to the bank’s official website-sbi.co.in. All resident individual customers including minors are eligible for this scheme.
- For SBI’s scheme, the minimum instalment amount is Rs 500 and in a financial year, one needs to deposit a minimum of Rs 5,000.
- The maximum amount one can deposit is Rs 50,000 and the maximum number of instalments is 10.
- The name(s) and mode of operation and branch of newly generated deposit account is same as in debit account, from which flexi deposit account is funded, noted SBI.
- The rate of interest is same as applicable to fixed deposits (FDs). The rate of interest is quarterly compounded, based on the balance outstanding on the last date of each month. Senior citizen can avail additional rate of interest on SBI Flexi Deposit scheme.
- The minimum tenor is 5 years and maximum is 7 years.
- In SBI Flexi Deposit Scheme premature withdrawal is allowed. However, the rate applicable in case of premature withdrawal shall be 0.50 per cent below the rate applicable for the period the deposit has remained with the bank, said SBI.
- The bank charges Rs 50 per financial year for non-deposit of monthly instalments.
- SBI Flexi Deposit Scheme also offers loan facility, nomination facility and passbook facility.
- Interest payable is subject to TDS (Tax deducted at source), said SBI.
- The maturity proceeds or the amount payable before maturity can only be transferred to the debit account from which the SBI Flexi Deposit was initially funded.
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