SBI Reinvestment Plan
|SBI Reinvestment Plan|
|Minimum Deposit Amount||Rs. 1,000|
|Tenure||6 months to 10 years|
|Interest Rate||5.30% to 5.40%|
SBI Reinvestment Plan is a term deposit scheme of up to 10 years. The minimum amount to invest is Rs. 1,000. The State Bank of India Fixed Deposit (FD) applies interest (compounding of interest) on the principal invested amount. The interest is paid in full with the principal amount at the time of maturity. You cannot withdraw the interest in regular intervals (monthly, quarterly, half-yearly, or yearly). You can also avail of a loan on this FD.
In this post, we will discuss SBI Investment Plan and Fixed Deposit features, eligibility criteria, interest rate, premature closure, returns, and frequently asked questions.
- Tenure: The scheme can be availed for a period ranging from 6 months to 10 years. Any period beyond the period of 10 years is not allowed by the bank. Generally, all the FD schemes of the bank are allowed for a maximum period of 10 years.
- Minimum and Maximum Limits: The scheme can be availed for a minimum of Rs. 1000, thereafter in multiples of Rs. 100. There is no upper limit for the amount in this scheme. One can deposit any amount of Rupees in this scheme. A deposit of more than Rs. 2.00 crores is treated as a bulk deposit and interest is levied on such deposits on the rates applicable to bulk deposits.
- Nomination: You can opt for a nomination facility. This option is allowed in favor of only an individual.
- Maturity Amount: Maturity amount more than Rs. 20 thousand is not paid in cash. Such amounts are necessarily transferred to the saving account of the holder which can be withdrawn from the saving account anytime.
- Tax Deducted at Source: TDS is applicable in this scheme as per guidelines from the Income Tax department. However, the account holders can fill 15G/ 15H as per their eligibility.
- Loan Facility: The holders of the SBI Reinvestment Plan are also eligible for loan benefits under this scheme. The margin conditions as per residual tenor of deposits as on date of availing the loan are 5% margin for FDs with a residual period of fewer than 36 months, 10% margin for FDs with residual period more than 36 months but less than 60 months, and 15% margin for FDs with residual period more than 60 months.
SBI Reinvestment Plan Eligibility Criteria
Eligible applicants (residents) under the following constitution are eligible under this scheme-
- Individuals - singly or jointly
- Karta of the Hindu Undivided Family
- Govt. departments
- Minor (through guardian, parents, or self)
- Local bodies
SBI Reinvestment Plan Interest Rate
Here are the details of the SBI Reinvestment Plan Interest Rate:
- The SBI fixed deposit interest is 5.30% for FDs of 3 years to less than 5 years.
- The SBI FD interest rate is 5.40% for fixed deposits of 5 years to less than 10 years.
- Compounding of interest is done in this scheme and the interest can be withdrawn along with the principal at the time of maturity only.
- No interest is paid by the bank for a deposit of less than 7 days.
SBI Reinvestment Plan Premature Closure
Here are the applicable terms and conditions for this SBI Fixed Deposit Plan:
- Premature closure: The accounts opened under SBI Reinvestment Plan are eligible for premature closure any time during the currency of the account. In case the account holder feels the necessity of money, he/ she can ask the bank to get the deposit liquidated without any problem. The bank returns the principal along with the interest applicable to it for the period to which the fixed deposit is maintained with the bank. In this case, the bank may charge some penalty also which generally equals 1% lesser interest applicable on the fixed deposit.
- The penalty on premature withdrawal of fixed deposit is 0.5% for deposits up to a limit of Rs. 5 lakhs (irrespective of tenure)
- The bank charges a penalty of 1% for premature closure of fixed deposits with a limit of more than Rs. 5 lakh for all tenures.
SBI Reinvestment Plan Returns
The standard chart to calculate the maturity value of a deposit of Rs. 100 corresponding to various tenures under SBI Reinvestment Plan is detailed here:
|Period (in years)||Public/ NRE/ NRO Scheme||Staff Scheme|
*The maturity value in this chart is calculated as per the IBA Master Chart of the bank.
Frequently Asked Questions about SBI Reinvestment Plan
Here are the FAQs:
1. In Which State Bank of India Branch is the Reinvestment Option Available?
This scheme is available in all the branches of the bank throughout the country. One can avail of the benefits of the SBI Reinvestment Plan in any branch across India.
2. Can You Transfer this SBI FD to Another Branch?
The account can be transferred anytime from one branch of the bank to another.
3. Can You Take a Loan against SBI FD?
Yes, you can avail of a loan against the fixed deposit. But the margin the bank applies depends on the tenure left for the FD’s maturity.
4. Is Option for Premature Closure Available?
You can preclose the FD before maturity. However, penalty charges will apply depending on how soon you close the fixed deposit and its value.
5. How Much Interest is Applicable on Rs. 2 crores and over FDs?
The interest applicable in this case is as per the bank’s discretion for bulk deposit interests.