State Bank of Travancore or SBT is a subsidiary bank of State Bank of India with over 1000 branches throughout India, of which over 700 branches are located within Kerala itself. The bank maintains its headquarters in Thiruvananthapuram, India and provides its customers with a host of services like consumer banking, retail banking, fixed (term) deposits, commercial banking, private banking and even pensions and mortgages.
In 1960 the bank was taken over by SBI and made a subsidiary bank under the SBI Subsidiary Banks Act of 1959.
SBT’s unique term savings solutions are a viable option for investors looking to park surplus funds or savings in a trusted banking institution. The bank’s customised FD schemes allow investors to park savings for periods ranging from the very near-term to medium or long-terms. The interest rates offered on these holdings are attractive yielding attractive returns on maturity based either on regular pay outs or reinvestment options. These accounts are easily accessible at the bank’s numerous branches requiring minimal initial investments.
The eligibility criteria for State Bank of Travancore may change with the FD scheme you want to opt for but in general they are that the person should be a resident of India. In case the person applying for an FD is below the age of 18 years or even 10 years then the account can be operated by the child and the parents or the legal guardians. Corporates, firms and NRI’s can also apply for certain FD schemes.
State Bank of Travancore offers numerous schemes to its customers so that they have the freedom to choose the scheme that suits them best. Some of these schemes are:
Under this scheme an individual, firm or an NRI can apply to open a fixed deposit with SBT. The minimum amount that can be deposited is ₹ 1000. Any further deposits under this scheme need to be made in multiples of ₹ 1000. This scheme allows for premature withdrawal, however, certain conditions do apply. These are that the deposit must be held with the bank for a minimum of 7 days and that at the time of withdrawal, the interest paid will be 1% less than what is applicable. Such a deposit can be opened for 1111 days or roughly 3 years.
This term deposit is designed to give you tax benefits under section 80C. The minimum amount that can be deposited under this scheme is ₹ 100 and the maximum is ₹ 100, 000 in one year. There are no premature withdrawal options for this type of a deposit and the minimum period that such a deposit must be held for is 5 years.
Term Deposits are regular fixed deposit schemes that carry minimum investments of ₹ 1000. Any further investments in this plan needs to be done in multiples of ₹ 100. They can be held for periods ranging from 7 days to 120 months or 10 years. If the depositor is a minor but over the age of 10 years then they can deposit up to ₹ 2, 00,000 individually. Such deposits offer premature withdrawal facilities but at a penalty.
The Reinvestment Plan offers investors the opportunity to gain maximum returns for their investments because the interest earned in this scheme is reinvested into the FD. Here, too, minors are allowed to make individual deposits up to ₹ 200, 000. The scheme also offers loans up to 90% of the amounts held in the FD.
Unit Deposits is a scheme that allows investors to invest a minimum of ₹ 10, 000. Any further investments are done in multiples of ₹ 1, 000. The idea behind this scheme is that the investor is allowed to withdraw money from this deposit in multiples of ₹ 1, 000 without actually breaking the fixed deposit.
As the name suggests, this deposit is made for a period of 700 days. The minimum amount for such a deposit is ₹ 10, 000. This fixed deposit can be held as an individual or as a joint account. It allows NRI’s also to invest in this scheme under the NRE Scheme however, if they close the deposit within one year of opening it, no interest is paid.
The minimum amount required to open a fixed deposit with State Bank of Travancore is ₹ 100 but this amount can change depending on the fixed deposit scheme you opt for. There are some schemes like Unit Deposit and Sapthami 700 Days Deposit that require a minimum of ₹ 10, 000 at the time of opening the account.
There is no defined upper limit on how much the bank will accept for deposits under their term deposit schemes but if the amount is in excess of ₹ 10 crores then approval from the head office is mandatory.
The minimum and maximum time periods for which term deposit accounts can be held for with SBT vary from scheme to scheme. The absolute minimum time period is 7 days and the maximum is 10 years. A special case, if you invest under the tax savings fixed deposit scheme then you can hold it only for 5 years. The term of 5 years is the minimum and the maximum period for such a deposit.
Just like the tax saving scheme, if you opt for the Anupama Deposit Scheme then the investment period is 1111 days and if you opt for the Sapthami 700 Days Deposit then the duration of the deposit is 700 days.
If you wish to open a fixed deposit with State Bank of Travancore then you will need to approach a branch closest to you. They will be more than happy to guide you through the process. The major requirement for deposits with SBT will be the completion of KYC details.
BankBazaar is an online financial site that lets users compare and apply for various fixed deposit schemes offered by various banks in the market. Applying online is an easy and convenient way to invest in bank FDs.
The interest rates offered by SBT on term deposits will vary with the period and scheme that you choose. On the whole, the interest rates are split into two categories i.e. deposits of amounts up to ₹ 1 crore and deposits greater than ₹ 1 crore.
The rates offered vary between 5.5% per annum and 8.75%. In case the depositor is a senior citizen, they will get an additional interest rate of 0.50% above the applicable rates of interest.
Yes, State Bank of Travancore does offer fixed deposits for tax savings. The scheme is called SBT Tax Saver Term Deposit and requires a minimum investment of ₹ 100. The maximum allowed investment in such an account is ₹ 1,00,000 in a year and the account can be held as an individual or as a joint account. The term for this account is 5 years and it offers no premature withdrawal schemes.
Yes, all term deposits with SBT can be taxed under relevant IT rules. However, if the person does not come in any tax bracket or if forms 15G and 15H have been submitted then tax may not be deducted at source. The bank will deduct tax at source wherever applicable.
The features of the term deposit schemes may change according to the plan you opt for but on the whole you can avail the following facilities with SBT fixed deposits.
Yes, SBT offers loans against fixed deposits held with the bank. The loan amount can be up to 90% of the deposited amount. The interest payable on the loan will be 1% above the applicable interest rate for the fixed deposit. This facility may not be applicable to all the schemes offered by SBT.
Yes, SBT does offer senior citizens a special interest rate on their fixed deposits. The rate is 0.50% above the applicable interest rate but the condition to avail such a facility is that the FD opened must be of a value of ₹ 5,000 or above.
Yes, however, the exact rules and regulations may depend on the scheme that you open the FD under. If it has been opened under the tax saver scheme then you cannot withdraw it before the first 5 years. With the Thrift Deposit scheme, no interest will be paid if you close the FD within the first 7 days. If you close after the first 7 days then you will be paid an interest rate which will be 1% less than the applicable interest and it will be paid only for the period for which you actually hold the FD.
Even in the case of an NRE deposit, premature withdrawals made within 1 year of opening the deposit will not be eligible for interest payment. Premature withdrawals made after 1 year will attract a penalty of an interest rate which is 1% less than the applicable rate.
Yes, NRIs can invest in fixed deposits through NRE deposits and FCNR deposits.
For NRE deposits, the duration of the deposit can be a minimum of 1 year and a maximum of 10 years. The interest you earn will depend on the amount you deposit and the duration of the deposit. For deposits made for 1 to 5 years you will earn 8.5% per annum if the amount deposited is below Rs. 1 crore. For the same duration if the amount is more than Rs. 1 crore then you can hope to earn an interest of 8.25% per annum. For deposits that are opened for 5 years to 10 years, the interest rate remains the same at 8% per annum.
In the case of FCNR deposits, the minimum duration of such a deposit can be from 1 year to 5 years and the currencies that can be used for transactions are USD, GBP, EURO, JPY, CAD, AUD, CHF, SGD and HKD. The interest rates for FCNR deposits depend on the currency and the duration of the deposit.