Overview of State Bank of Travancore
State Bank of Travancore (SBT) is one of the associate banks of State Bank of India (SBI), the largest banking group in India. Founded in 1945 as Travancore Bank Ltd., the initial funding came from the erstwhile Princely State of Travancore. This Thiruvananthapuram headquartered bank has over 1,100 branches across the country serviced by around 15,000 employees.
Listed on major bourses in the country, SBT offers a full range of banking and financial services catering to the needs of individuals as well as companies and institutions operating in various sectors & industries. In the deposits portfolio, SBT offers savings & current accounts, term deposits and other customised options based on the investor’s requirement.
Recurring Deposit (RD) from State Bank of Travancore
The bank offers two types of Recurring Deposit scheme with appealing features and market vetted interest rates. Aimed at fulfilling the investment needs of various categories of customers, SBT offers RD schemes as below.
- Standard Recurring Deposit - This scheme comes with populist features and benefits that includes a flexible deposit term ranging from 12 months to 10 years. This scheme is most suited for individuals who wish to steadily build their investment corpus.
- Variable Deposit Scheme (Super Surplus) - A scheme that offers flexibility to invest an amount of your choice every month by choosing a “core amount”. This scheme is also open to minors with certain conditions that are elaborated further.
Features and Benefits of State Bank of Travancore Recurring Deposit
Standard Recurring Deposit
- This scheme comes with a deposit period that starts at just 12 months and can stretch up to 120 months(10 years). This range extends flexibility in terms of choosing a term which best suits your investment needs.
- Minors, aged 10 years and above are welcome to open an account in their name and operate independently, provided the maturity value does not exceed Rs.2,00,000.
- Depositors are eligible for various loans against the deposit amount.
- Other standard facilities such as nomination, premature withdrawal are also available.
Variable Deposit Scheme (Super Surplus)
- Akin to the term options available with the standard RD scheme, the depositor gets to choose from a period ranging from 12 months to 120 months.
- The depositor has an option to choose a core amount from Rs.100 to 1,000 per month which acts as base amount for future monthly investments.
- On basis of the core amount opted, the depositor can invest up to 10 times this amount in multiples.
- Interest rates are compounded and credited to the account on a half yearly basis.
- Minors above the age of 10 years can open and operate the RD account independently. Here, the upper cap on maturity value should not exceed Rs.2,00,000.
- SBT does not penalise delayed monthly remittances under this scheme. However, if the number of remittances is less than 10 per year, Rs.10 will be the penalty amount.
- The depositor can draw a loan on basis of the deposit amount in the RD account.
- Nomination facility is available.
Interest Rates Offered on State Bank of Travancore’s Recurring Deposit
SBT offers slab based interest rates on all the RD schemes. The rate ranges from 8% to 8.50% depending on the term of deposit. Investments ranging from 1 to 5 years yields the best interest at 8.50% p.a. Senior citizens qualify for an additional rate of 0.50%(the minimum deposit amount should be Rs.5,000) over and above the existing rate.
This rate is applicable for all deposits where the total amount is up 1 crore. For deposits exceeding 1 crore and less than 10 crores, the rate comes down 0.50 percentage points on various slabs.
Opening a Recurring Deposit Account with State Bank of Travancore
Savings/current account holders with SBT can open an RD account in a hassle free manner with minimal documentation. New customers who wish to sign up for one of the RD schemes can approach the nearest bank for details on formalities and documentation. New applicants may be required to open a savings account to facilitate activation of RD. Supporting documents listed below will be required at the time of signing up.
- Passport sized photograph
- ID and address proof
- PAN and contact details
- Introduction as per bank rules
- Any other documents as per bank’s requirement
The representative at the bank will advise further on the paperwork and forms.
Penalty on Premature Withdrawal
All premature withdrawals will attract a nominal penalty. The penalisation will be in terms of reducing the applicable interest rates to a marginal extent. The bank representatives will provide further information. These details are also available in the the T&C document which will provided at the time of opening the account.