A Standard Chartered Bank fixed (term) deposit is just one of the many services that can be availed by customers of this banking giant. It comes with many facilities like flexible durations, choices between simple and compound interest, low deposit amounts and even auto-renewal facilities.
Standard Chartered Bank has been in India for over 150 years and in that time it has spread its branches to over 42 cities through a hundred or more branches. The bank opened in India in 1858 and has since done its utmost to offer its customers a wealth of services that include regular banking service for Indians, special services for NRI’s and even quick and easy solutions for day-to-day banking via online and mobile banking.
Their glowing list of accolades for exemplary service include awards like Best Foreign Bank 2012 awarded by Bloomberg Financial Leadership Awards and Financial Advisor of the Year Award 2012 awarded by UTI CNBC.
Investors can earn fixed income on their savings or surplus funds by holding their money in an SCB FD. These schemes offer returns that are attractive and can provide a steady income or work as an option for those looking to compound earnings on their investments. Flexible holding periods let depositors invest their savings as per their liquidity needs and plan investments better.
Any individual working for a private limited company or a government body, proprietorships, partnerships, organisations, clubs, societies or HUF (Hindu Unified Families) are eligible to open a fixed deposit account with Standard Chartered Bank.
Standard Chartered Bank offers fixed deposits to all it customers that can be opened for a period of 7 days to 5 years. The interest rates offered are applied based on the deposit scheme opted for. The bank also offers overdraft facilities against the funds held in FD accounts, to provide for times when there may be an urgent need for cash. Apart from the domestic term deposits, they also offer NRE and NRO deposits for NRI’s and FCNR deposits.
The schemes offered also have various features like Monthly Income Plans, Reinvestment Deposit, Short Term Deposits and Simple Fixed Deposits.
To open a fixed deposit account with Standard Chartered Bank, the minimum amount required for the first deposit is ₹ 50,000. Thereafter, deposits can be in multiples of ₹ 1,000. In case of the Online Term Deposit the minimum amount is ₹ 10,000.
SCB allows deposits of various amounts. The maximum amount that can be deposited in an SCB FD account is ₹ 7.5 crore. Acceptance of high-value deposits may be subject to regulatory approvals.
Fixed deposits with Standard Chartered Bank can be held for a minimum of 7 days and a maximum of 5 years. The interest rates offered vary depending on the duration of the fixed deposit. They usually offer a host of different tenures. Short-term schemes ranging between 7 to 9 days long deposits, medium-term schemes in the range of 1 to 2 years and long-term schemes of 3 - 5 years.
SCB FD accounts can be opened through online and offline modes. Customers can apply to open a fixed deposit account online through the bank’s website. Applicants will be required to fill a form with some basic information from where they will be redirected to another page to complete the remaining formalities. Alternately, they may contact the bank directly via telephone or visit any of the bank’s branches to get information/open the FD.
Depending on the duration of the deposit, the minimum return on a deposit less than ₹ 1 Cr. for a period of 7 to 9 days is 4.25% and the maximum return is 8.25% per annum. Interest rates are subject to change in accordance to market rate movements. It is advisable to check rates prevailing at the time of opening/renewing FDs.
SCB currently doesn’t offer tax saver FD schemes. Irrespective of deposit periods, interest earned is taxable in accordance with provisions of the Income Tax Act, 1961.
Tax deducted on fixed deposits fall under two main categories which are FD’s where PAN details have been provided and deposits where they have not. If the PAN number has been provided then the bank will deduct 10% TDS (Tax Deducted at Source) if the interest income exceeds ₹ 10,000 in a financial year. In case PAN details have not been provided then all interest income in excess of ₹ 10,000 will be taxed at 20%. Interest income on FDs has to be declared by the accountholder while filing returns and the appropriate amount of tax has to be paid thereon.
Standard Chartered fixed deposits sport features like tenures ranging from 7 days to 5 years. They provide a choice between simple and compound interest. They provide an overdraft facility on FD accounts as well.
Customers are offered the opportunity to take a loan against an FD with Standard Chartered Bank with facilities to repay in easy instalments. The amount borrowed can be up to 85% against domestic term deposits. This is subject to rates, terms and conditions as outlined by the bank.
Currently, there are no special rates for senior citizens. Rack rates apply to all customers irrespective of age.
The usual conditions for the issue of a credit card from Standard Chartered Bank are that the person applying for the card must be over 21 years of age and should have a salary account with the bank. In case the person applying for the card does not have a salary account with Standard Chartered they may apply for the credit cards if they have fixed deposits with the bank. The credit limits that will be offered in this case will be equivalent to the amount of the fixed deposit.
Yes, for domestic deposits, you can close an SCB FD prematurely however you will only be paid an interest for the time for which the fixed deposit has been held with the bank. You will also be have to suffer a penalty under which you will be paid a discounted rate of interest which will be 1% less than the original rate of interest.
For the NRE and FCNR deposits, if they are close within 1 year of being opened than no interest will be paid but if the deposit has been held with the bank for longer than 1 year the interest will be calculated at a discounted rate of 1% lesser than the prevailing rate and it will be paid only for the actual duration of the deposit.
Yes, NRIs can open NRE deposits, FCNR deposits or NRO deposits. In the case of NRO deposits all the tenors and interest rates will be the same as those for the domestic term deposits.
NRE deposits can be opened for durations ranging from 1 year to 5 years. The interest you can earn on these deposits, when the deposit amount is less than Rs. 1 crore, will range from 7.25% per annum on deposits made for 391 days to 5 years and 8.15% per annum for deposits made for 376 days to 390 days. Deposits that are opened for 1 year to 375 days can expect to earn 8.1% per annum. The interest rates for all NRE deposits made in excess of Rs. 1 crore will be 6.4% per annum.