INSUBCONTINENT EXCLUSIVE:
However, there is a difference between an SBI fixed deposit and reinvestment plan.State Bank of India or SBI, the largest lender of the
country, offers a variety of products ranging from savings and fixed deposit accounts to tax-saving and gold monetisation schemes
One of these products offered by SBI is the SBI Reinvestment Plan, which works like a fixed deposit
The difference between an SBI fixed deposit and reinvestment plan is that instead of interest being paid out at a regular frequency during
the period of deposit, in SBI reinvestment plan, the interest is paid out only at the time of maturity
Regular interest is added to the principal and compound interest is calculated and paid thereon, said SBI.Here are key things to know about
SBI reinvestment plan, a variant of SBI fixed deposit:Instalments: The minimum instalment that one is required to deposit in SBI
reinvestment plan is Rs 1,000
There is no maximum limit on the investment.Interest rates: Interest rates on SBI reinvestment plan are the same as on fixed deposits
The following are the latest SBI FD interest rates on deposits below Rs 1 crore:State Bank of India (SBI) FD Interest RatesSBI revised its
interest rates on retail fixed deposits with effect from August 30, stated sbi.co.in
The following FD interest rates are for deposits below Rs 1 crore:(All figures in % per annum)TermInterest rate for general public w.e.f
30.07.2018Interest rate for senior citizens w.e.f
30.07.20187 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less
of SBI reinvestment plan ranges from six months to 10 years.(: SBI Collects Over Rs
2,400 Crore As Minimum Balance Penalty In FY18 From Customers)Premature Withdrawal: A premature withdrawal facility is available on SBI
For retail fixed deposit up to Rs 5 lakh, the penalty for premature withdrawal will be 0.50 per cent (all tenors); for retail fixed deposits
above Rs 5 lakh but below Rs 1 crore, the applicable penalty will be 1 per cent (all tenors).The interest shall be 0.50 per cent or 1 per
cent below the interest rate applicable at the time of deposits for the period deposit remained with SBI or 0.50 per cent or 1 per cent
below the contracted rate, whichever is lower
However, no interest will be paid on deposits which remain for a period of less than seven days.TDS: SBI reinvestment plan is subject to a
TDS is deducted at the prevalent income tax rate if Form 15G/15H not submitted.Loan facility: Customers can avail a loan or overdraft up to
90 per cent of the money available plus accrued interest, at 1 per cent above the fixed deposit or FD interest rate.Auto renewal: SBI
exercises an auto renewal on the reinvestment plan if maturity instructions are not given.
