Overview of State Bank of Mysore
Founded in 1913 as The Bank of Mysore Ltd, SBI is one of the 5 associate banks of State Bank of India (SBI). Listed on both BSE and NSE, this Bank headquartered in Bengaluru has over 1000 branches across India with a strong base in the state of Karnataka. It also has a massive presence in the rural banking sector.
In the retail banking division, SBM offers a wide range of banking products and financial services which includes term deposit services such as savings and current accounts, fixed and recurring deposits.
Recurring Deposit(RD) from State Bank of Mysore
SBM offers a single scheme under the RD portfolio which comes with standard features and benefits. The interest rates are appealing and is at par with market standards which ensures great savings on your investment.
Features and Benefits of State Bank of Mysore Recurring Deposit
- The minimum monthly deposit amount starts at just Rs.100 which can be increased in multiples of Rs.10 based upon your investment needs.
- Deposit term starts at 12 months with an upper limit of 120 months which provides enough flexibility to the depositor to choose a term of his choice.
- Interest charges are compounded on a quarterly basis, payable at the end of the term along with the principal amount.
Interest Rates Offered on State Bank of Mysore’s Recurring Deposit Scheme
The interest rates on Recurring Deposit schemes extended by SBM are slightly higher than the market standards. The current rate of interest starts at 8.75% that can go up to 8.80% depending on the term of deposit. Senior citizens get an additional benefit of 0.50% on the prevailing rate.
The rates are subjected to periodic changes based on market conditions and bank’s discretion. Inquire with the nearest branch or look up for deposit rates online before opening an RD account. The interest earned is not subject to TDS (Tax Deducted at Source).
Opening an Recurring Deposit Account with State Bank of Mysore
Existing savings,current and OD account holders with SBM can easily open an RD account via internet banking without any documentation. Log onto the internet banking account and use the relevant option to open the account and set terms. The RD will directly be linked to the existing account for ease of monthly debits.
Non account holders can walk into the nearest banking branch for details on procedure to open an RD account. You may be required to open a savings/current account by providing standard documents relating to ID and address proof.
Penalty on Premature Withdrawal
All premature withdrawals will be penalised by means of reduction in the interest charges at the rate of 1% below the rate applicable for the term.
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