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Updated on May 05, 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.
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 | 2.90 | 3.40 |
| 45 – 179 days | 3.90 | 4.40 |
| 180 – 210 days | 4.40 | 4.90 |
| 211 – 1 year | 4.40 | 4.90 |
| 1 year – up to 2 years | 5.10 | 5.60 |
| 2 years – up to 3 years | 5.10 | 5.60 |
| 3 years – up to 5 years | 5.30 | 5.80 |
| 5 years – up to 10 years | 5.40 | 6.20 |
*Last updated in Jan 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:
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.
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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.
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