SBI Reinvestment Plan

What is the SBI Reinvestment Plan Term Deposit?

The SBI Reinvestment Plan is a variant of the traditional Fixed Deposit, uniquely designed for wealth accumulation. The total accumulated interest, along with the principal, is paid as a single lump sum only at the time of maturity.

Key Features of the SBI Reinvestment Plan

Here are the SBI Reinvestment Plan refined features and guidelines:

1. Flexible Tenure:

   Investments can be made for a minimum of 6 months up to a maximum of 10 years.

2. Deposit Limits:

   • Minimum: ₹1,000 (and in multiples of ₹100 thereafter).
   • Maximum: No upper limit.
   • Bulk Classification: Deposits of ₹3 Crore and above are classified as "Bulk Deposits" and attract different interest rates.

3. Compounding & Payout:

   Interest is compounded quarterly and added to the principal. The entire accumulated amount (Principal + Compound Interest) is paid only at maturity.

4. Accessibility:

   Available at all SBI branches and through digital channels (YONO/INB).

5. Nomination:

   Nomination facility is available, strictly in favour of individuals (singly or jointly).

6. Payment Rule:

   For security and compliance, maturity proceeds (Principal + Interest) of ₹20,000 and above will not be paid in cash; they are credited directly to the linked bank account.

7. Transferability:

   You can easily transfer your deposit account between any SBI branch across India.

8. Taxation (TDS):

   Tax is deducted at source as per Income Tax rules. To avoid TDS, eligible depositors must submit Form 15G or 15H at the start of each financial year.

9. Loan Against Deposit (Liquidity)

   You can avail of a loan or overdraft facility against your reinvestment plan (up to 90% of the value) without breaking the FD. The margin required depends on the remaining time until maturity:

   Residual Tenor of Deposit	Margin (For Public)	Borrowing Limit
   Up to 36 Months	5%	Up to 95% of the value
   36 Months to 60 Months	10%	Up to 90% of the value
   Above 60 Months	15%	Up to 85% of the value

Eligibility Criteria for SBI Reinvestment Plan

The following categories are eligible to invest in the SBI Reinvestment Plan:

• Resident individuals (can apply singly or jointly)
• Minors (can invest themselves or through their legal Guardian)
• Karta of a Hindu Undivided Family (HUF)
• Firms
• Companies
• Local Bodies
• Any Government Department

Conclusion

The SBI Reinvestment Plan is an ideal investment plan for long-term wealth creation and disciplined savings. By using the mechanism of the power of compound interest, it ensures your money works harder for you, providing a substantial maturity amount. The SBI Reinvestment Plan is your step to fulfilling your future financial goals.