Yes , It is true ,Just park/Transfer your spare funds in Saving bank Account in Term Deposit (FDR) for seven days of more and you will earn 7 % interest on that amount.No withdrawal penalty if deposit remains for more than 7 days .This scheme is provided by SBI and other bank(Check with your bank) . Presently Interest rate on Saving deposit is 4 % .
STATE BANK OF INDIA TERM DEPOSIT SCHEME
- Choice of interest at regular intervals or reinvesting the interest with the benefit of compounding.
- Nomination facility available.
- Loan against the security of Term Deposit to the extent of 90% of the deposit, at 1 % p.a. above the rate of the deposit.
- No TDS if interest payable per year is less than 10,000 i.e. Investment for 1 year will not attract TDS for the amounts mentioned below:
- (a) Senior Citizen= 98,880
- (b)Others= 104,400
- Hassle free premature payment anytime
- (a) No prepayment penalty for tenors up to 90 days provided deposit runs for 7 days. (b)Only 0.5% penalty for tenors beyond 90 days. Invest for 90 days and withdraw anytime after 7 days without any penalty
TERM DEPOSIT INTEREST RATES
Tenor
|
Interest
Rate
(%p.a.)
|
Senior Citizen
Interest Rate
(%p.a.)
|
7 days to 90 days
|
700
|
7.00
|
91 days to 179 days
|
7.25
|
7.25
|
180 days to 240 days
|
6.50
|
6.50
|
241 days to less
than 1 year
|
7.75
|
7.75
|
1 year and upto 10 years
|
9.25
|
9.75
|
SPECIAL TERM DEPOSIT
Maturity amounts lor
deposit of Rs 10,000
Tenor Maturity Amount
(?)
|
Annualised
Rate of Interest
(%p.a.)
|
Senior Citizen
|
|
Maturity Amount
(?)
|
Annualised
Rate of Interest (%p.a.)
|
||
1 Year 10957.58
|
9.58
|
11011.23
|
10.11
|
2 Years 12006.86
|
10.03
|
12124.72
|
10.62
|
3 Years 13156.62
|
10.52
|
13350.81
|
11.17
|
5 Years 15796.98
|
11.59
|
16187.49
|
12.37
|
8 Years 20783.48
|
13.48
|
21611.61
|
14.51
|
10 Years 24954.44
|
14.95
|
26203.47
|
16.20
|
• The figures in the above table indicate the effective (annualized) interest rate.
• Interest rates are applicable as on 11th July 2011 on quarterly compounded basis and are subject to change.
• Interest rates are applicable as on 11th July 2011 on quarterly compounded basis and are subject to change.
