On one hand banks are increasing their Interest rates on Saving Bank Deposit accounts on account of deregulation of SB interest rates by RBI. On the other hand State Bank of India has come out with an innovative idea of unfixed deposits whereby customer will not only get High Returns but will also get Full Liquidity on their deposits .
SBI Unfixed Deposit
Under the Scheme the Bank is offering interest @ 8.5% p.a. on Bulk deposit of Rs. 1 crore and above for a period ranging 7 Days to 180 Days. There is a facility to withdraw the funds anytime after 7 days and interest is paid at contracted rate i.e 8.5% at present upto the date of withdrawal. It means no penalty is charged on premature withdrawal of funds. Though there is no lock in period in such deposit, no interest is paid if funds are withdrawn before 7 days. The product is ideally suited for short-term liquidity of individuals, Companies Firms, Institutions Trust, Societies, Associations etc.
The above product is also available for retail deposits of below Rs.1 crore for a period ranging 7 Days to 179 Days at 7.25% p.a. Rate of Interest.
A Saving Bank Deposit account allows you to keep your money safe and secure and earn a small interest over it as well. You have the option to withdraw the funds as per your requirement any time in case of need. SB deposit is Liquid in nature.
A fixed deposit account allows you to deposit your money for a fixed period of time on a fixed rate of interest thereby earning a higher rate of interest in return than a savings bank account. Funds placed in a Fixed Deposit usually cannot be withdrawn prior to maturity or they can be withdrawn before maturity by giving an advance notice (in practice it is not) and /or by paying a certain penalty thereby reducing the interest earnings. The main feature of Fixed Deposit is Higher Returns.
Unlike the conventional deposits viz. Saving Bank or Fixed Deposit, the Unfixed Deposit gives you the opportunity to withdraw your money any time without prior notice and without losing out on any interest. The Unfixed Deposit lets you enjoy higher returns and easy access to your money as well.
Then why to keep our hard earned money in savings account for unforeseen exigencies which earns only 4.00% interest (only a few banks offer 5.5% – 6% interest) and also why to keep the money in Fixed deposit where earning is reduced in case of premature withdrawal? Please think and act.
There is no difference between this and savings bank deposit
Sbi should increase the interest in savings bank to 8%
I agree, it should atleast be increased to 7.25%
i am agree with SBI’s newly launched unfixed deposit scheme
appreciated but minimum amt. should be brought down to some extent so that more people would make use of the scheme
Dear Arun,
This scheme is applicable for retail deposits also i.e amount below Rs. 1 crore with slightly lesser rate of interest which is already mentioned in the post. Regards,
Admin
How to activate this facility in our SB account?
please give the procedure.
Dear Srinivasan,
Go to the nearest SBI branch and ask for this product, they will certainly provide you. regards,
Admin
Although I have kept some money in SBI unfixed amount for the last four months with 9% interest. But, still I am not sure about the withdrawal procedure. Can I withdraw some part of the deposited amount or I need to withdraw the entire amount deposited if atall I need to withdraw? Some one very clear about this scheme may kindly guide me. I have not got any satisfactory response from the SBI officials also in this regard.
Dear Surajit,
In order to enable us reply to your query, please supply the undernoted information,
i) Date of deposit:
ii) Period of deposit:
iii)Amount of depsoit : Whether it is upto 15 lacs or greater.
iv) ROI : 9% (Aleady advised by you)
regards,
Admin
Surajit,
you cannot withdraw partial amount, if you will discontinue the unfixed fd it will be broked and credited in your account along with interest for certain days but i will suggest you to continue the unfixed fd @ 9% is gud for the time.
If I deposit 2 lac rupees as unfixed…will i get amount with 7.25 interest rate after 7 days if i want to withdraw.?
unfixed deposit autorenu or not ?
Dear Sir,
Can be auto renewed at the option of depositor. regrads,
Admin
this scheme is good for a amount of 30000 Rs in one year….plz reply
Request to send me the detail Circular of the Unfixed Deposit Scheme as I am undertaking Research Study MBA Final Year – The new trend ‘Un-Fixed Deposit scheme’. I would be highly obliged if you can send me the detail circular with procedure and operational guidelines. A word of acknowledgement will be highly appreciated.