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  • Fixed Deposit BYTES FROM OUR KITCHEN

    SBI Reinvestment Plan

    While a regular fixed deposit offers the depositor the option to withdraw the interest earned at regular intervals, the SBI Reinvestment Plan, as the name suggest, does not pay the interest out. What it does instead is to take that interest and add it to the principal and then the whole amount earns compound interest. Once the fixed deposit matures the depositor is able to withdraw the original amount invested, along with all the interest that has been earned till date.

    Eligibility Criteria for applying for the scheme

    The Reinvestment Plan offered by SBI is available to all the residents of India, even if they don’t happen to fall in any tax brackets or are not liable to pay taxes.

    Features of the Reinvestment Plan

    Account Type

    NA

    Amount

    Min: The minimum instalment that can be deposited into this FD is Rs. 1,000

    Max: There is no limit on the maximum instalment that can be deposited in the FD.

    Rate of Interest

    Min: The minimum interest rate available is 5.25% per annum on deposits held for 7 days to 45 days. For the same period senior citizens earn 5.75% per annum.

    Max: The highest interest rates available are 7.5% per annum for periods ranging from 456 days to just under 3 years.

    Tenure

    Min: The least period for which this FD can be held is 7 days.

    Max: The maximum tenure for this FD is 10 years.

    TDS

    Tax will be deducted at source if the interest earned from the fixed deposit crosses Rs. 10,000 in a financial year.

    Loan against the scheme

    This FD can be used to secure a loan and the loan amount can be up to 90% of the amount in the deposit.

    Nomination (if any)

    This deposit allows for nominees to be named in case the primary holder passes away.

    Auto Renewals

    The auto renewals depend on the maturity conditions of the deposit. If no maturity period is defined auto renewals will apply.

    SBI Reinvestment Plan interest rates

    The interest rates offered on this scheme are the same as those that apply to other fixed deposits held with the bank.

    Tenure

    Interest rates (per annum)

    7 days to 45 days

    5.25%

    46 days to 179 days

    6.5%

    180 days to 210 days

    6.75%

    211 days to less than 1 year

    7%

    1 year to 455 days

    7.25%

    456 days to less than 2 years

    7.5%

    2 years to less than 3 years

    7.5%

    3 years to less than 5 years

    7%

    5 years and up to 10 years

    7%

    *Interest rates as of 1/12/2015

    It is also worth noting that the interest rates offered to senior citizens is 0.25% higher. There is also a higher interest rate applicable for those who are or are pensioners from SBI and that rate is 1% above the applicable rates.

    Another thing worth noting that interest rates are determined by the banks and can change from time to time without notice.

    FAQ

    Q. What is the maximum amount that can be invested in this FD?

    A. There is no limit on the maximum amount that can be invested in this fixed deposit.

    Q. Are there any tax benefits associated with the Reinvestment Plan?

    A. Since this is not a tax saving fixed deposit, no tax benefits can be claimed on the amount invested in this account.

    Q. If I have set a maturity period, will the FD renew itself once it matures?

    A. Auto renewals, or renewals, do not apply to deposits that have a fixed maturity periods. They only apply when a maturity is not selected.

    Q. What if I am not liable to pay taxes?

    A. If you are not liable to pay taxes then you need to submit forms 15G or 15H to the bank so that it does not deduct tax on the interest earned.

    Q. Can I go in for a premature withdrawal?

    A. Yes, premature withdrawals are permitted but they will be subject to certain penalties. For accounts that hold less than Rs. 5 lakhs there are no penalties but for accounts that have more than Rs. 5 lakhs the penalty applied can be a reduction of the applicable interest rate by 1%.

    Useful Information on SBI Fixed Deposit

    SBI Reinvestment Plan Reviews

    • SBI Fixed Deposit
      "Best Investment plan"
      0.5 5.0/5 "Blown Away!"
      I have taken fixed deposit account in State Bank Of India . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 4
      , ahmedabad
      Reviewed on Dec 29, 2018
    • SBI Fixed Deposit
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had made this investment pretty long time back and the services which they had provided so far has been good. The interest rate with them has been good and the growth with the investment has also been good. Their customer support has been helpful in guiding with everything.
      Was this review helpful? 8
      , bangalore
      Reviewed on Dec 14, 2018
    • SBI Fixed Deposit
      "Good Investment Plan"
      0.5 4.0/5 "Great!"
      I have taken fixed deposit account in STATE BANK OF INDIA . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 4
      , mumbai
      Reviewed on Dec 12, 2018
    • SBI Fixed Deposit
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I had a Fixed Deposit account with SBI and my experience was average, an amount of Rs 20000 is paid as a fixed amount. Customer service was not up to the mark with SBI. I am not aware of the returns in this Fixed deposit account.
      Was this review helpful? 6
      , kolkata
      Reviewed on Nov 20, 2018
    • SBI Fixed Deposit
      "Good returns"
      0.5 5.0/5 "Blown Away!"
      I had a Fixed Deposit account with SBI and my experience was good, an amount of Rs 1 lac is paid as a fixed amount. Customer service was very good and they explained all the terns and conditions. I am satisfied with the returns in this Fixed deposit account.
      Was this review helpful? 3
      , gurgaon
      Reviewed on Nov 20, 2018
    • SBI Fixed Deposit
      "Good Investment"
      0.5 5.0/5 "Blown Away!"
      I have fixed deposit in SBI, the interest rate is good around 8.9% for the period of one year. I can invest the min of Rs. 500 to 15 lakhs, I have not tried reaching them because everything is going well. I get message every time after making a payment on month basis.
      Was this review helpful? 8
      , hyderabad
      Reviewed on Nov 12, 2018
    • SBI Fixed Deposit
      "Average Investman plan"
      0.5 2.0/5 "Expected more"
      I have taken Fixed deposit account from the state bank of India . There is no additional charges for the account. It is short term investment plan for 5 years but am not satisfied with the rate of i9nytrest which they are giving . I used to get income tax benefits . Customer service and response is not that much good .
      Was this review helpful? 5
      , bangalore
      Reviewed on Nov 10, 2018
    • SBI Fixed Deposit
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I have a fixed deposit account with State Bank of India. The experience is fine and there are no hassles to open this account. The interest I earn on this account is also satisfactory. The customer support and response is good at the bank. It has been a smooth process.
      Was this review helpful? 0
      , bangalore
      Reviewed on Oct 27, 2018
    • SBI Fixed Deposit
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have a Fixed Deposit with SBI from last 3 years, i am satisfied with the returns of Fixed Deposit which is 8%-9%. The maturity period for Fixed Deposit is 5 years. Customer support was very good and they explained all the terms and conditions..
      Was this review helpful? 9
      , secunderabad
      Reviewed on Oct 19, 2018
    • SBI Fixed Deposit
      "Good in all"
      0.5 3.5/5 "Pretty good"
      I hold a fixed deposit account with State Bank of India. I had to visit the bank to open this account, it is a tedious process as it was not online. I had to fill in the application for the same. In all there has been a very good experience. Good overall.
      Was this review helpful? 2
      , bangalore
      Reviewed on Oct 18, 2018
    • SBI Fixed Deposit
      "Good service"
      0.5 4.5/5 "Excellent!"
      I have a Fixed Deposit account with SBI from last 4 years, the maturity period for this FD is 18 years. I invested an amount of Rs 5 lacs in Fixed Deposit account. Customer service was good with SBI and i get good returns of 8% after the maturity period.
      Was this review helpful? 13
      , hyderabad
      Reviewed on Oct 01, 2018
    • SBI Fixed Deposit
      "Good service"
      0.5 4.0/5 "Great!"
      I have opened a Fixed Deposit with SBI since 2011, i have renewed the FD 2 to 3 times. Customer service is very good with this bank and they explained everything about the returns. I deposit an amount of Rs 1 lac and i get 6.75% as interest on returns.
      Was this review helpful? 18
      , kolkata
      Reviewed on Aug 29, 2018
    • SBI Fixed Deposit
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken fixed deposit account with state bank of India . I have chosen this bank . As they are offering good rate of interest which will good returns . Am satisfied with the premium amount which am paying . Am satisfied with customer service and response .
      Was this review helpful? 17
      , mumbai
      Reviewed on Jul 25, 2018
    • SBI Fixed Deposit
      "Needs to improve"
      0.5 2.0/5 "Expected more"
      I have a Fixed Deposit account with SBI from last 8 months, i am not happy with the services provided by SBI as their response is not proper and there was no complete information given. I paid an Fixed amount of Rs 1.5 lakhs and in return i get 6.5% as interest which is less when compared to others.
      Was this review helpful? 20
      , gurgaon
      Reviewed on Jul 20, 2018
    • SBI Fixed Deposit
      "Good Service"
      0.5 3.0/5 "Satisfactory"
      I've Fixed deposit with the SBI, I deposited 50000. It was so easy to start a fixed deposit with them. 2 years. For senior citizen they offers 7% interest rate which is very low. They also provided me with a credit card with the FD which was also good.
      Was this review helpful? 31
      , chennai
      Reviewed on Jun 11, 2018
    • SBI Fixed Deposit
      "Good Service"
      0.5 2.0/5 "Expected more"
      I've a fixed deposit with the SBI. I deposited 60000 . I also got a credit card as a part of this fixed deposit.I never had any issues with the deposit. The deposit was opened with out any questions asked, they also give an annual interest for this deposit.
      Was this review helpful? 11
      , mumbai
      Reviewed on May 25, 2018
    • SBI Fixed Deposit
      "Good Service"
      0.5 4.0/5 "Great!"
      I've a savings account with SBI. I started a Fixed Deposit with them. I started the FD for tax saving purposes. They do charge some normal annual interest rates of fixed deposit also I had never experienced any difficulty with their services.
      Was this review helpful? 9
      , chennai
      Reviewed on May 21, 2018
    • SBI Fixed Deposit
      "Average"
      0.5 3.0/5 "Satisfactory"
      State Bank Of India fixed deposit service is good. But I am not much comfortable with State Bank Of India process. State Bank Of Indiaonline portal is good, even the payments are through online. It was an average service from Sbi fixed deposit service.
      Was this review helpful? 9
      , pune
      Reviewed on Apr 25, 2018
    • SBI Fixed Deposit
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have opened an Fixed Deposit account with SBI 3-4 years back, the services provided by this bank is good when compared to other banks. I invest 5000-6000 every month. I get 7.5% as an interest on returns. Customer support team guided me well and they gave all right information.
      Was this review helpful? 4
      , ahmedabad
      Reviewed on Apr 20, 2018
    • SBI Fixed Deposit
      "Fixed deposit with SBI"
      0.5 4.5/5 "Excellent!"
      I have opened a fixed deposit with SBI and the rate of interest is 7.75% annually. If i fore close the Fixed deposit then the interest will be adjusted against the amount on pro rate basis. The customer service and response with them is much comfortable.
      Was this review helpful? 9
      , chennai
      Reviewed on Apr 20, 2018
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