State Bank of Hyderabad is an associate bank of the State Bank of India and was founded in 1941. It became a subsidiary of SBI in 1956. The bank was established during the reign of Mir Osman Ali Khan, the last Nizam of Hyderabad and was originally called the Hyderabad State Bank. As it grew, the bank, in 1943, took over the Hyderabad Mercantile Bank and started conducting government treasury business as an agent of the RBI.
SBH offers retail fixed deposits to its customers at attractive rates of interest and tenures that range from the short-term to the long-term. These deposits are devised to maximise returns on savings. The interest rates on these schemes are set in accordance to market movements and the banks fund requirements. It is always advisable to check interest rates on a periodic basis in addition to the unique features each scheme offers to avail the best scheme.
Any individual who is a resident of India can apply for FDs with SBH. NRIs can also apply for certain FD schemes offered by the bank.
State Bank of Hyderabad offers its customers a wide variety of term deposit schemes to choose from. They have been designed to take care of the various needs customers may have. Some of these schemes are:
The SBH Kuber 400 scheme is a term deposit which has be designed to give a medium- term deposit with attractive interest rates. In this scheme the depositor can invest between ₹ 10,000 and ₹ 99,90,000. The tenure of the scheme is 400 days and carries no premature withdrawal penalty in case the deposit is withdrawn after the minimum 7 day period. This scheme is valid up to 31st March 2015.
This is a traditional fixed deposit scheme where depositors can invest their money in a FD which will then earn interest. The interest earned can be collected at monthly, quarterly, half-yearly or yearly intervals and also lets depositors withdraw the deposit prematurely. However, premature withdrawals may attract penalties on the interest.
These are fixed deposits that offer customers all the facilities that normal fixed deposits do. Under this scheme the interest earned can be reinvested in the term deposit at quarterly intervals. The interest and the principal are paid out when the deposit matures.
Under this scheme, depositors can open term deposits either under the regular fixed deposit scheme or the Special Term Deposit scheme. The advantage of opening a Super Saver Term Deposit is that it offers higher interest rates for deposits made for 5 years to 10 years.
As the name suggests, this scheme is designed to provide fixed deposits for senior citizens. To be able to open this term deposit the applicant must be a senior citizen which means that he or she must be over the age of 60 years. The advantage of this scheme is that the depositors gets an interest rate higher than those meant for other schemes.
The SBH Tax Saver Scheme has been created to provide income tax benefits to depositors. Under this scheme investors can invest up to ₹ 1 lakh in a year. The tenure of this scheme is fixed at 5 years and above and no premature withdrawals are permitted.
This is a scheme where depositors can open FDs for a minimum of 1 year and a maximum of 5 years. It can be opened as a Special Term Deposit or a regular term deposit. The minimum amount that can be invested is ₹ 10,000. Any further invests are done in multiples of ₹ 1,000. An advantage of this scheme is that if you issue a cheque and the amount in your account is not enough to cover the cheque then the balance amount is withdrawn from the FD and paid. There are no penalties that will apply in such a situation.
The minimum amount that is required to open an FD with SBH depends on the FD scheme that you opt for. It could range from a minimum of ₹ 10,000 to considerably lesser amounts for tax saver schemes.
There is no prescribed limit to how much you can deposit in a fixed deposit with SBH. They offer facilities for deposits in excess of ₹ 50 Cr also.
The minimum period for which a term deposit can be held is 7 days and the maximum is 10 years. This, however, is subject to the scheme you are going to take and may vary accordingly.
If you wish to open a fixed deposit with State Bank of Hyderabad then all you have to do is use the BankBazaar website to get you started. On our site you will be provided with tools that will help you decide on the amount you want to invest and what its maturity value will be.
Once you have decided on all the details, all you have to do is to download the application form. Fill it up and then submit it at the SBH branch closest to you.
The interest rates offered for fixed deposits range from a minimum of 6.5% per annum to 8.85% per annum, depending on the amount deposited and the tenure of the FD. Apart from this they also offer higher interest rates for senior citizens.
Yes, SBH does offer tax saver fixed deposits. They are called SBH Tax Saver Schemes and allow depositors to invest up to ₹ 1 lakh per annum in them. All deposits made under this scheme are liable for tax benefits under section 80C.
Yes. The interest earned on the fixed deposits held with the bank can be taxed as per existing tax rules unless documents supporting tax exemption are produced.
There are many advantages to opening fixed deposits with SBH. Some of them are:
Yes, if you have a fixed deposit with SBH you can take a loan against it. However, fixed deposits held under the tax saver schemes cannot be used to secure loans.
Yes. SBH offers senior citizens special interest rates of 0.30% above standard interest rates.
No. SBH does not offer credit cards against fixed deposits held with them.
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