In SBI Fixed Deposit Scheme, there is a facility to link the name of the nominee with the depositor. In case of untimely death of the depositor, the nominee gets the full benefit of the FD. The nominee can claim and receive the FD money.
SBI child plan fixed deposit: If you want to make your child’s future golden, then State Bank SBI is running a special scheme. This scheme is of fixed deposit. Its name is SBI Child Plan Fixed Deposit. This plan has been made in such a way that the future of the child can be secured. The advantage of compound interest is available on deposits in very short time and less risk. According to the interest fixed by the Reserve Bank, the State Bank gives returns on this scheme.
This scheme has been made in such a way that the needs of the child related to education, marriage and employment can be met. This scheme is so easy to take and the risk is very less, due to which it is in great demand. In the absence of the father or the person who has started this FD scheme in the name of his child, the insurance company pays the full premium. An investment of Rs 10,000 per month in this scheme ends up getting Rs 1 crore without any tax deduction. 46,800 can be saved under Section 80C of Income Tax.
Benefits of SBI child plan fixed deposit
1- Earning from interest
Without any risk, this scheme gives the right earning of interest in the name of the depositor. Guaranteed returns are available on the deposit amount according to the fixed interest rate. That is, the return has to be received according to the interest that is already fixed. For this, the basis point is fixed by the Reserve Bank and on that basis the return is received from the bank. The money deposited by the depositor gets the benefit of compound interest.
2- Financial facilities to the nominee
In SBI Fixed Deposit Scheme, there is a facility to link the name of the nominee with the depositor. In case of untimely death of the depositor, the nominee gets the full benefit of the FD. The nominee can claim and receive the FD money. The depositor can enroll wife or husband or child as a nominee.
3- Calculate interest rate
The interest on this scheme is subject to change. It completely depends on the interest rate of the Reserve Bank. The rate fixed by the Reserve Bank is applied to the FD itself. The interest rate also depends on the age, gender of the depositor and the amount of premium. Children, youth and minors get the most attractive interest rate in SBI Child Plan Fixed Deposit Scheme.
4- Renewal of deposit term
SBI provides automated facility to renew the deposit term. At the time when this scheme is started in the bank, at the same time you have to apply for auto renewal. As soon as this policy matures, its money will be fixed for the next term. This will give an opportunity to increase the deposited capital.
5- Tax advantage
Tax facility is available on child plan and senior citizen plan. Its limit has been fixed, below which income is not taxed. By taking advantage of this scheme, tax can be saved and the accumulated capital can be increased. Before investing in the scheme, one should get information about the tax benefits.