Sbi’S ‘Utsav’ Special Fixed Deposit Scheme Expires on October 28 – Key Points to Consider | Rare Techy
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Should you invest in SBI’s Utsav fixed deposit scheme? Here are the key things to know about it
What is the plan?
Senior citizens earn an additional interest rate of 0.50 percent over the standard rate applicable to general deposits.
| Last date | October 28 |
| Age of Deposit | 1000 days |
| Authorized Deposits |
Domestic Fixed Income Deposits, including NRO Term Deposits (less than Rs 2 million), new and renewal deposits, term deposits and special term deposits only. |
| Exclusions |
NRO Deposits of Employees and Senior Citizens |
| Interest Payment |
Term Deposits – At monthly / quarterly / half-yearly intervals. Special Temporary Deposits – Upon arrival. Interest, excluding TDS, will be charged to the account of the depositor |
| Tax Deducted at Source (TDS) |
According to the law-income tax at the applicable rate |
| Premature withdrawal |
As for temporary storage |
| Loan Facility | available |
| Available through |
(Source: SBI website)
Current SBI FD Rates
| Time | Interest rates for the general public | Interest rates for senior citizens |
| From 7 days to 45 days | 3 | 3.5 |
| 46 days to 179 days | 4.5 | 5 |
| 180 days to 210 days | 5.25 | 5.75 |
| 211 days less than 1 year | 5.5 | 6 |
| 1 year less than 2 years | 6.1 | 6.6 |
| 2 years less than 3 years | 6.25 | 6.75 |
| 3 years less than 5 years | 6.1 | 6.6 |
| 5 years and up to 10 years | 6.1 | 6.9 |
(Source: SBI website)
Should one invest in SBI’s Utsav FD scheme?
This fixed deposit scheme has higher interest rates and is available for a limited time only. Hence, those who are looking for higher rates over a given period and want to invest in SBI can consider the scheme.
Gaurav Aggarwal – Senior Manager at Paisabazaar suggested that customers who plan to park their surpluses in fixed deposits should stick to maturities of 1-2 years.
“Consumers should avoid automatic renewal facilities while disbursing their fixed deposits. This may allow them to renew their fixed deposits at higher interest rates after having the highest interest balances at the time of renewal,” he said. Aggarwal.
However, late FDs will be a good move in the next few months.
Fixed deposit portfolio is a process of spreading investment in FDs over several maturity periods or maturity buckets, whereby investors get a chance to earn higher returns and even address liquidity needs.
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