The State Bank of India (SBI) has rolled out a 400-day Fixed Deposit (FD) scheme which permits its customers to have the best of both worlds when it comes to deposits, the short term and the long term. This special FD period is meant for the investors who want a higher return than a regular one-year deposit but are not ready to take the risk of longer durations of two or three years.
What Is The SBI 400-Day Fixed Deposit?
The SBI 400-day FD is a fixed deposit scheme for a period of about 1 year and 35 days. It gives guaranteed returns at a predetermined rate of interest, thus it is regarded as a safe investment, particularly for the risk-averse investors. As it is available only for a limited time, the customers have to open the FD within the time-frame specified by the bank.
Interest Rates Offered Under The Scheme
SBI, normally, offers a higher rate of interest than the standard one-year FDs under this 400-day FD plan. Regular customers get good returns, on the other hand, the old people get more interest which makes the scheme very appealing for the retired persons seeking stable income. The actual rates might differ from the time the scheme is available and the policy of RBI at that time.
Who Should Invest In The SBI 400-Day FD?
This FD scheme is perfect for people who want to do financial planning for short to medium terms. Guaranteed returns with no risk in the market will be a service for salaried employees, retirees and investors who avoid risks. The elderly are especially attracted to this scheme because of its high interest but also the safety that comes with investing in a bank that is government-backed.
Premature Withdrawal And Other Features
SBI 400-day FD is like the most fixed deposits, the pretender withdrawal is allowed, although a penalty might be applied in case of withdrawal of funds before maturity. Investors can either get the interest at the end of every period or go for cumulative returns that are paid at maturity. The scheme also supports the nomination facility which ensures that your family members are financially secure.
Taxation Rules On SBI Fixed Deposits
The interest on the 400-day FD is taxable in accordance with the income tax rules. TDS (Tax Deducted at Source) may be charged if the interest is above the specified limit. Senior citizens are allowed to file Form 15H and other investors can file Form 15G to avoid TDS if they are eligible.
Availability And Important Considerations
The SBI 400-day FD is categorized as a special scheme and may not be available for a long time. Therefore it is advisable that customers check the current status of availability, rates, and terms at the nearest SBI branch or on the official SBI digital platforms before investing.
Also Read : Post Office New FD Scheme: Earn RS 44,995 Interest on RS 1 Lakh With Govt Guarantee