Unlike the term deposit schemes where the depositor can withdraw the interest earned at regular intervals, the reinvestment plan offered by State Bank of India doesn’t pay the interest. Instead of paying out the interest, it makes sure that it is added to the principal amount. This way, the depositor can avail the benefit of earning the whole amount with compound interest. Moreover, at the time of maturity, the depositor is allowed to withdraw the deposited amount along with interest earned during the tenure.
Every Indian citizen salaried or not can apply for this scheme even if they are not accountable to pay taxes.
Maximum: No limit set
Rate of Interest
Minimum: for the holding period of 7-45 days, the returns are pegged at 5.25% per annum
For the same period, senior citizens earn 5.75% per annum.
Maximum: For the holding period ranging between 456 Days to just under 3 years, the rate of interest is calculated at 7.5% per annum.
Minimum: 7 Days
Maximum: 120 Months
If more than Rs.10,000/- is the interest earned on the deposit; then tax can be deducted.
Loan against the scheme
It avails the loan of about 90% of the total amount
Nomination (if any)
Only applicable considering the deposit holder’s death
Based on the deposit’s maturity condition, auto renewal will be applied. If it is not defined, then auto renewal is applicable.
Interest rates (per annum)
1 Week to 45 Days
46 Days to 179 Days
6 Months to 210 Days
211 Days to less than 365 Days
365 Days to 455 Days
456 Days to less than 730 Days
730 Days to less than 3 Years
3 Years to less than 60 Months
60 Months and up to 120 Months
From the above-mentioned interest rates, the Reinvestment Plan Scheme by SBI provides the senior citizens with an additional 0.25% interest on their deposits. And, those who are the employees of SBI or are now retired from the organization gets 1% extra on their deposits.
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