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Updated on Feb 01, 2024
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 Fixed Deposit Double Scheme.
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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.
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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.
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