SPECIAL TERM DEPOSIT

This plan helps you to earn interest on interest, thus giving you a two-fold income. You deposit your money for any period between six months to 10 years, and SBI pays you interest on your deposited money plus on the interest you earn. Thus your interest gets compounded every quarter giving you higher returns.

Affordable/Very Low Minimum Deposit Amount : You can open a Special Term Deposit with SBI for a nominal amount of Rs. 1000/- only.

Highlights

Safety - SBI understands the value of your hard earned money and continue to deliver on our promise of safety and security over 200 years.

Liquidity

Loan /overdraft facility: You can avail a loan/overdraft against your deposit.SBI provides you loan / overdraft upto 90% of your deposit amount at nominal cost.So you continue to earn interest in your deposit and still can meet your urgent financial requirements.

Premature Withdrawal : Interest to be charged on premature withdrawal of special term deposits at 1.00% below the rate applicable for the period deposit has remained with the Bank.

Transferability - Transfer of Special Term Deposits between the SBI branches without any charge.

Flexible / Timely Payment of Interest - We assure timely delivery of the proceeds of your deposit with interest, on maturity. Flexibility of payment on maturity through Cash (subject to prevalent Income Tax Act), Banker's Cheque, Credit in Savings Bank/Current account.

Others

Special Term Deposits are available at all SBI Branches
Easy and convenient access of 24X7 information at SBI Internet Banking.

Nomination Facility - Available.

Tax Implications.

Tax Deductible at Source, as per Income Tax Act.

Automatic Renewals

There is no need for you to keep track of the maturity of your deposits.Your deposits with SBI will be renewed automatically, post maturity.And you continue to earn interest for same period as that of your matured deposit, at the interest rate prevailing at the time of maturity.Automatic renewals take place where there are no standing instructions for renewal.

Flexibility to covert your Term Deposit to Special Term Deposit and vice versa

You can convert your Term Deposit to a Special Term Deposit, which provides compounded rate of interest to multiply your money faster.You can also convert your Special Term Deposit to a Term Deposit to receive monthly/quarterly interest payments to match your financial requirements.