Say as an example you need to make payment for a house and have liquid cash that needs to be paid only after a while, until then you can park the money in the SBI Unfixed Deposit.
The Deposit is an investment cum savings plan, where the depositor gets higher return, good liquidity and no penal charges for early withdrawal.
The few features of SBI Unfixed Deposit are:
- It offers benefits of both saving and fixed deposit account.
- The scheme provides the liquidity feature of saving account and higher interest rate of fixed deposit account.
- Unfixed deposits are available for short term ranging from 7 days to less than 1 year.
- Can be withdrawn anytime after 7 days, without charges. This feature is very beneficial when compared to normal fixed deposits as it will attract charges on premature withdrawal.
- If the money deposited under unfixed deposit is withdrawn before maturity then interest will be paid on the basis on number of days an investor remains invested.
- In case of partial withdrawal is made, the balance amount will fetch interest at the specified interest rate.
- Interest rates on unfixed deposits are treated same as on fixed deposit for tax purpose.
For deposit above Rs 1 Crore for a period of 7 days to less than year, the interest rates is around 7.50%
Deposit amount for less than 1Crore i.e between Rs 15 lakh to 1 crore for a period of 7 days to less than year, the interest rate is around 6.50%.
This scheme is ideal for people who are looking for short term liquidity. Individuals, companies, institutions, Firms, Trusts, Association can invest in this scheme.