1676
7 min read
Updated on Oct 28, 2023
Special Term Deposit is a SBI fixed deposit double scheme plan that caters to the investors who want to get double return on their investment. This plan is a reinvestment policy in which the interest accumulated is added to the primary investment amount to generate compounding returns.
Let us understand the features and other elements of the Money Double Scheme in SBI.
Table of Contents Show
So, what is the SBI FD double scheme? You already know about the traditional scheme of SBI fixed deposit (FD) where the invested amount is held for a duration ranging from 7 days to 120 months. You get to earn an interest under this scheme which is uniform till the FD matures. The returns earned in this way can be requested from the bank to be paid to you periodically such as on a monthly basis, half-yearly basis or even yearly basis.
Contrary to the traditional FD, the SBI Special Term Deposit or the SBI Fixed Deposit Double Scheme is a plan that never pays interest. Rather, it reinvests the quarterly interest earned in the FD account to earn compounding benefits. Hence, at the end of the tenure of the plan the investor receives a cumulative maturity amount that comprises the principal together with the accrued interest.
The interest rates offered under the SBI Double Scheme are fixed to meet the financial goals of investors. This scheme levies quarterly interest that is compounded on a cumulative basis to double the investment at maturity.
Here’s the updated SBI FD interest rates mentioned in the table below:
Tenure | Interest Rates for Regular Account Holders | Interest Rates for Senior Citizens |
7 – 45 days | 3.00 | 3.50 |
46 – 179 days | 4.50 | 5.00 |
180 – 210 days | 5.25 | 5.75 |
211 – 1 year | 5.75 | 6.25 |
1 year – up to 2 years | 6.80 | 7.30 |
2 years – up to 3 years | 7.00 | 7.50 |
3 years – up to 5 years | 6.50 | 7.00 |
5 years – up to 10 years | 6.50 | 7.50 |
If you understand the applied interest rates of your SBI Special Term Deposit, you can check its maturity values easily. The table below explains the rough value at maturity for INR 100 each invested with varying monthly durations.
Table for Maturity Values (INR 100 Investment)
Tenure (monthly) | General Public | Staff |
6 | 102.2121 | 102.7182 |
9 | 103.3364 | 104.1049 |
12 | 105.0945 | 106.1364 |
24 | 110.6670 | 112.8714 |
36 | 117.1114 | 120.6263 |
48 | 123.4428 | 128.4072 |
60 | 130.7600 | 137.3644 |
72 | 137.9654 | 146.3690 |
84 | 145.5677 | 155.9638 |
96 | 153.5890 | 166.1876 |
108 | 162.0523 | 177.0816 |
120 | 170.9819 | 188.6898 |
Up to 4 decimal places Effective from 15 January 2022
The Special Term Deposit is a plan that allows the investor to grow their money to receive back double the investment at maturity. The plan aims to help the investor to meet his/her ultimate goal of achieving their financial objectives.
Here are some critical features and benefits of the scheme to understand:
Below are the various advantages that come with the SBI Special Term Deposit that allow you to double money in 5 years and above:
The interest rate offered under this scheme is lucrative, which supports the investors to double the invested amount over a particular time period
The FD double Scheme offers a simple and hassle-free option to start an account, which can be done either by visiting the bank physically or via an online process through the official SBI portal.
The investor can avail of loans against the SBI FD Double schemes without the worry of breaking the deposit scheme. Hence, they can be protected if there is a financial crunch.
The investor under this scheme has the flexibility to select the sum to be deposited as per their financial condition.
The FD double scheme also allows a nomination facility where the depositor would nominate an individual on his/her behalf to receive the deposit amount. This is in case of the FD account holder’s unfortunate death before FD maturity.
Some banks might allow premature withdrawal of the FD double scheme. However, they will charge penalties for withdrawing the FD before maturity. Hence, it is better to avoid it unless it is an unavoidable emergency
TDS is deducted from the income earned under the FD Double Scheme. If the interest earned is more than INR 40,000 in a year for regular citizens, the bank deducts TDS. Similarly, if INR 50,000 or more is earned as interest in a year for senior citizens, TDS is deducted. 10% TDS is deducted if the investor discloses PAN Card details and 20% is deducted if the PAN card details are not revealed.
Normal FD | FD Double Deposit Scheme |
Under this scheme, the FD account holder can select the investment period as per their choice | Under this FD scheme, the investor is required to deposit a fixed sum of money for a pre-decided term period |
The rate of interest under this FD deposit scheme depends on the term selected by the investor. A longer FD investment duration allows higher interest rates for the investor | Here, the interest remains fixed for the entire duration of the FD. However, it ensures that the invested sum gets doubled by the end of the predetermined period |
The account holder receives the principal amount along with interest at the time of FD maturity | The interest received on the sum invested gets reinvested in the scheme |
The FD double schemes offer a greater rate of return as compared to the regular FD schemes |
Name of bank | Tenure of FD | Interest rates |
Axis Bank | 6 months – 5 years | 5.75% – 7.00% |
Bank of Baroda | 3 months – 10 years | 4.50% – 6.50% |
Bank of India | 3 months – 10 years | 4.50% – 6.00% |
Bandhan Bank | 3 months – 10 years | 3.00% – 7.85% |
Canara Bank | 3 months – 10 years | 5.50% – 6.70% |
Co-operative Bank | 1 year – 5 years | 6.00% – 6.35% |
DBS Bank | 3 months – 10 years | 3.00% – 6.50% |
Equitas Bank | 7 days – 10 years | 3.50% – 7.25% |
HDFC Bank | 3 months – 10 years | 4.50% – 7.00% |
ICICI Bank | 3 months – 10 years | 4.50% – 6.90% |
IDBI Bank | 3 months – 20 years | 4.50% – 4.80% |
Indian Bank | 3 months – 10 years | 3.50% – 6.10% |
Indian Overseas Bank | 3 months – 10 years | 4.50% – 6.50% |
LIC | 1 year – 5 years | 7.25% – 7.75% |
Punjab National Bank | 3 months – 10 years | 4.50% – 6.50% |
Post Office | 1 year – 5 years | 6.90% – 7.50% |
RBL Bank | 3 months – 20 years | 4.75% – 7.00% |
SBI Bank | 3 months – 10 years | 3.00% – 6.50% |
UCO Bank | 3 months – 10 years | 4.50% – 6.10% |
Union Bank of India | 3 months – 10 years | 3.00% – 6.70% |
Yes Bank | 3 months – 10 years | 4.75% – 7.00 % |
To Sum Up
SBI Special Term Deposit is a customized plan to suit your goal. It doubles your investment at maturity and allows you to enjoy good returns. This safe plan of investment allows you to invest the amount for up to a 10-year period.
Browse Mahindra PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit Mahindra PayBima to Buy Insurance Online.
The accumulated interest in a special term deposit scheme during a budget year is subject to TDS at appropriate rates after deducting the exemptions based on the Income Tax Act, 1961.
TDS may not apply to the account as per the eligibility of the investor if the person submits a form of 15G or 15H. However, this request is effective only during the fiscal year when the form is submitted.
When your policy matures, the maturity value of the scheme gets transferred to the bank account that is linked to the policy.
In case of a joint account, if the primary account holder dies, the policy still continues till maturity without the primary account holder.
No, generally the interest rate applied on SBI special term deposit is fixed throughout the tenure of the deposit.
The fixed deposit doubles within a tenure of 7 days to 10 years.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
For many risk-averse Indian citizens, an FD account is the safest and the most reliable means of securing a lump sum amount in a couple.
Have you ever delayed your ITR filing task until the last moment due to its difficulty? Income Tax Returns, commonly termed ITR, is a form.
Suraj was recently blessed with a daughter, and he wanted to invest in a safe and guaranteed scheme to save some money for her school.
When Sahil lost his job a couple of years back, he was devastated as he had a family of 6 to look after, which was.
Are you well-informed about the various schemes offered by your state government, especially the ones for the old, needy and people with low incomes? Do.
When Soha, a single mother, was considering different investment options to invest INR 10 lakhs for her daughter’s higher education, she wanted a risk-free and.
The Swatantrata Sainik Samman Yojana (SSSY) was introduced as a token of gratitude to the freedom fighters for their contributions to free India. Let’s learn.
As you embrace parenthood and enjoy the bliss of having a child in your life, you also prepare yourself to shoulder some responsibilities of the.
With the changing times, the perspective of women in society has experienced a sea change. From being labelled as a housewife to someone who has.
When it comes to investing in a good financial/investment scheme, there are a host of products available in the market to choose from. Some offer.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue