The SBI Fixed Deposit Double Scheme is named Special Term Deposit to cater to investors looking to double their money at maturity. In other words, it is a reinvestment plan where the accrued interest is added to the principal to generate compounding benefits.
* The Guaranteed Returns are dependent on the policy term and premium term availed along with the other variable factors. 7.2% rate of return is for a 30 years old, healthy male for a policy term of 10 years and premium term of 5 years with Rs.20,000 monthly instalment premium. STANDARD TERMS AND CONDITIONS APPLY. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.
Save upto ₹46,800 in tax under Sec 80C
Inbuilt Life Cover
Tax Free Returns Unlike FD
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Before delving into the features in the scheme, let us understand the elements of the Fixed Deposit Double Scheme.
The traditional SBI Fixed Deposit holds your invested funds for 7 days to 120 months duration and earns uniform interest rates until maturity. You can request interest payment periodically every month, half-yearly, or yearly.
On the contrary, SBI Special Term Deposit does not pay interest but reinvests it in the account. Interest applied quarterly is reinvested for a compounding benefit. As a result, you receive the cumulative maturity value at the tenure’s end comprising the invested principal plus the accumulated interest.
The FD interest rates applied in the SBI Fixed Deposit Double Scheme are crucial to meeting your financial goals. Interest is applied quarterly and compounded for a cumulative maturity value to double your investment.
Accordingly, the latest SBI FD interest rates applied in Fixed Deposits are tabulated below.
|SBI Domestic Term Deposit Rates up to Rs. 2 Cr|
|Tenors||Account Holders (%)||Senior Citizens %|
|7 days thru 45 days||2.90||3.40|
|45 days thru 179 days||3.90||4.40|
|180 days thru 210 days||4.40||4.90|
|211 days thru 1 year||4.40||4.90|
|1 year thru less than 2 years||5.10||5.60|
|2 years thru less than 3 years||5.10||5.60|
|3 years thru less than 5 years||5.30||5.80|
|5 years thru less than 10 years||5.40||6.20|
|Effective from 15 January 2022|
Points to Note:
Senior Citizens are paid an additional 30 basis points for deposit tenors of 5 years and above under their “SBI WeCare” scheme up to 31 March 2022
It is above the preferential 50 basis points paid to them
SBI staff earns a preferential 100 basis points over the card rate
It is time to check out the maturity values of your investment in the Special Term Deposit after thoroughly understanding the applicable interest rates. The grid below describes the approximate maturity value for every Rs. 100 invested over varying monthly tenors.
|Standard Table for Maturity Values on Rs. 100 Investment|
|Monthly Tenors||General Public||Staff|
|Up to 4 decimal places Effective from 15 January 2022|
You get a glimpse of how your deposit doubles over increasing tenors due to quarterly compounding through the above grid.
All resident individuals are allowed to park their funds in the deposit. In addition, the following are significant:
You can operate the account singly or jointly. Minor accounts are self-operated or through a guardian.
Apart from the individual investors, HUF Karta, Firm, Company, Local Bodies, and any other Government Department can invest in the deposit scheme.
The primary reason for choosing the Special Term Deposit is to help your money grow in anticipation of receiving double the investment. However, the ultimate goal is to meet your life’s milestones and achieve your financial objectives. Thus, you must look at the scheme’s critical features to grasp how it works.
You can avail of the scheme at all SBI branches.
The minimum tenor is 6 months, while the maximum is 120 months or 10 years.
Your minimum investment must be Rs.1000 followed by multiples of Rs.100, without any upper limit. However, an investment of Rs.2 Cr and above is classified as a bulk deposit.
The interest in the deposit is compounded quarterly and paid only on maturity and the invested principal.
You can transfer the deposit across all SBI branches according to your choice.
You can seek a loan on your deposit with applicable margins based on the remaining tenor. The following is illustrative:
Up to 36 months: 5% margin.
More than 36 months but lesser than 60 months: 10% margin
More than 60 months: 15% margin.
You have understood that bank deposits are safe and flexible investment vehicles offering an eclectic product range to meet your varied financial objectives. Thus, it is helpful to explore the several advantages that come with the SBI Special Term Deposit, not the least to double your money.
You can open an account in any SBI branch after opening a savings account with them. The same customer ID allotted to you acts as the master identification to avoid KYC compliance once again. A simplified account opening form with an instruction to debit your account suffices. In addition, you can request the account opening online or offline, according to your convenience.
You can choose the amount to invest and the tenor aligned to your specific financial objectives. Whether the deposit is big or small, there are no restrictions prescribed for the scheme.
Though the deposit is for a contracted period, you are allowed to withdraw the deposit prematurely, subject to complying with the underlying conditions. So let us see what they are:
The penalty for premature withdrawal for deposits up to Rs. 5 Lac is 0.50% across all tenors.
For deposits above Rs.5 Lac, the penalty is 1%.
The bank’s applicable interest for the deposit period is 0.50% or 1% below the card rate and 0.50% or 1% below the contracted rate, whichever is lower.
However, you do not earn any interest on the deposit tenor lesser than 7 days.
You can assign a nominee while opening the account or later. In addition, you can change the nominee subsequently, anytime within the maturity date.
SBI Special Term Deposit is tailored for your goal to double your investment after a period. It is a safe investment vehicle with the option to stay invested for up to 10 years. In addition, you have the option to renew the investment for a like period without any restrictions. With attractive quarterly compounded interest rates, your search finally ends with the SBI scheme providing the means to double the investment.
|Fixed Deposit Interest Rates|
|SBI FD Interest Rates||HDFC FD Interest Rates|
|ICICI FD Interest Rates||Axis Bank FD Interest Rates|
|Canara FD Interest Rates||Yes Bank FD Interest Rates|
|Kotak Mahindra FD Interest Rates||Bandhan Bank FD Interest Rates|
|Union Bank of India FD Interest Rates||Indusind Bank FD Interest Rates|
|PNB FD Interest Rates||Bank of Baroda FD Interest Rates|
|IDFC Bank FD Interest Rates||Indian Bank FD Interest Rates|
|RBL Bank FD Interest Rates||UCO Bank FD Interest Rates|
|Karnatka Bank FD Interest Rates||Bank of India FD Interest Rates|
|IDBI Bank FD Interest Rates||Central Bank of India FD Interest Rates|
|Bank of Maharashtra FD Interest Rates||Citi Bank FD Interest Rates|
|Allahabad Bank FD Interest Rates||Indian Overseas Bank FD Interest Rates|
|Andhra Bank FD Interest Rates||Corporation Bank FD Interest Rates|
|DBS Bank FD Interest Rates||Syndicate Bank FD Interest Rates|
|Dena Bank FD Interest Rates||Vijaya Bank FD Interest Rates|
|State Bank of Travancore FD Interest Rates||State Bank of Mysore FD Interest Rates|
|State Bank of Hyderabad FD Interest Rates|
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