SBI Sarvottam FD offers 7.9% interest rate; what is the minimum investment limit? Note that premature payment is not allowed under such schemes
The Reserve Bank of India recently enhanced the non-callable fixed deposit limit to Rs 1 crore from Rs 15 lakh. Banks usually offer higher interest rates on non-callable FDs, as your money is locked-in for a certain period. Note that premature payment is not allowed under such schemes.The State Bank of India (SBI) offers non-callable fixed deposit dubbed as Sarvottam with higher interest rates.
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What is the minimum amount to invest in SBI Sarvottam?
The minimum amount to invest in SBI Sarvottam is Rs 1 crore. Earlier, the minimum investment amount was Rs 15 lakh.Will FD interest rates touch 10%? All eyes on RBI MPC on December 8, 2023
In a notification released on October 26, 2023, the central bank said, "In terms of these instructions, banks have been permitted to offer domestic term deposits (TDs) without premature withdrawal option, provided that all TDs accepted from individuals for an amount of Rupees fifteen lakh and below shall have premature withdrawal-facility. Further, the banks have also been permitted to offer differential rate on interest on TDs based on non-callability of deposits (i.e., non-availability of premature withdrawal option) in addition to tenor and size of deposits."
"On a review, it has been decided that (i) the minimum amount for offering non-callable TDs may be increased from Rupees fifteen lakh to Rupees one crore i.e., all domestic term deposits accepted from individuals for amount of Rupees one crore and below shall have premature-withdrawal-facility and (ii) these instructions shall also be applicable for Non-Resident (External) Rupee (NRE) Deposit / Ordinary Non-Resident (NRO) Deposits," it added.
SBI Sarvottam term deposits interest rates
The bank provides a 7.4 per cent interest rate on SBI Sarvottam term deposits with a two-year term. The interest rate is set at 7.10 per cent for a one-year term. Senior citizens will get 0.50 per cent higher interest rates. Senior citizens will earn an interest rate of 7.9 per cent for deposits maturing in two years. For a year, they will get an interest rate of 7.6 per cent.Premature withdrawal to be allowed on all bank FDs of up to Rs 1 crore: RBI hikes limit of non-callable FDs
Resident individuals and non- individual customers are eligible to invest (Minors and NRI customers are not eligible). Further, the scheme is available through branches only.
INTEREST RATE ON SARVOTTAM (NON-CALLABLE) DOMESTIC RETAIL TERM DEPOSITS (above Rs. 1 crore to less than Rs. 2 crore) W.E.F. 17-02-2023 General PublicSenior CitizenTenorsRates w.e.f. 17/02/2023Annualised Yield#Rates w.e.f. 17/02/2023Annualised Yield#1 Yr7.17.297.67.822 Yr7.47.617.98.14Source: SBI website
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This story originally appeared on: India Times - Author:Faqs of Insurances
