• Sneha Bandhan Yojana, a FD Scheme Initiative from the Government of India

    The Sneha Bandhan Yojana, was launched by the Government of India on August 1, 2015, on the occasion of Raksha Bandhan. The Prime Minister Narendra Modi announced 3 special gift products will be available in banks for purchase for a specific amount and this can be gifted to a loved one. These gift products are not only meant for the occasion of Raksha Bandhan but can be purchased for any special occasion, like festivals, social occasions and wedding celebrations etc. These gift products will basically be gift card or bankers cheque, when deposited into the bank, a new account will be opened. The 3 special gift products are Instrument for Rs 201, Instrument for Rs.351, and Instrument for Rs.5001. This will consist of a life insurance as well as a fixed deposit.

    Features of the Sneha Bandhan Yojana

    • Sneha Bandhan Yojana scheme is on the lines of a gift card or banker's cheque. This can be used to be presented to your loved ones.
    • The gift cards are available in denominations of Rs. 201, Rs.351, and Rs.5001. The receiver of this cards, can open 0 balance accounts with any bank and deposit the card amount. If the receiver already has an account then it can be deposited there itself.
    • The cards will be linked to the government schemes like the Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana, any remainder balances will be added to a fixed deposit account carrying an interest rate of 8%.

    The Limitations of Sneha Bandhan Yojana

    The Sneha Bandhan Yojana also has its terms and conditions, the insurance schemes premium will need to be paid and will be responsibility of the insured or the customer. The rate of interest will be paid on the term / fixed deposits will be as per the current rate of the bank. The deduction of TDS will be applicable on the term / fixed deposit accounts as per the prevailing guidelines.

    Explanation for the Gift Products:

    Sneha Bandhan Yojana's Gift Product of Rs. 201

    • This will be split into life insurance and a fixed deposit, the split will be Rs. 12 paid immediately towards an insurance premium for the 1st year and the second year's premium of Rs.12 will be maintained in a savings account. The remaining Rs. 177 will be opened in a fixed deposit for a term of 10 years, and the interest earned will be 8% per annum, this will amount to Rs. 14.16 which will be used for future premiums paid till the date of the fixed deposit.

    Sneha Bandhan Yojana's Gift Product of Rs. 351

    • In this the gift will be split into a Rs. 12 payment made towards, Pradhan Mantri Suraksha Bima Yojana, and another payment made of Rs. 330 made towards Pradhan Mantri Jeevan Jyoti Bima Yojana, the remainder of Rs. 9 will be set up in a savings account earning an interest of 8% per annum, this amount will not be deposited into a Fixed Deposit. The future premiums will need to be paid from your pocket every year.

    Gift Product of Rs.5001

    • The gift product will be split in payments made of Rs. 342 for the first 5 years of the insurance premium cover, another Rs. 342 will be kept in a savings account for the next year's premium. The remainder amount of Rs. 4317 will be saved in a FD for a term of 5 or 10 years, with an 8% per annum interest rate, leading to interest earned to be Rs. 345.36 which will used to pay the remaining insurance premiums at the current rate till the date of the FD.

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