SIDBI offers 9.84 per cent yield on 12-13-month fixed deposits

MUMBAI: The Small Industries Development Bank of India (SIDBI) on Wednesday said that it now offers general investors and bulk depositors an annualised yield of 9.84 per cent on its fixed deposit scheme with a duration of 12-13 months.

SIDBI offers an interest rate of 9.50 per for fixed deposits of 12-13-months duration; 9.25 per cent for fixed deposits of 14-36-months' duration and 9 per cent for fixed deposits of 37-60-months duration.

SIDBI also offers higher interest rates of 10.38 per cent to senior citizens for a 12-13-month period, 9.75 per cent for fixed deposits of duration 14-36-months and 9.5 per cent for fixed deposits of 37-60-months' duration.

"Our fixed deposit scheme is rated 'AAA' by CARE, which is quite unique for a development bank. SIDBI always benchmarks its interest rates against the industry," SIDBI's Chairman & Managing Director, Sushil Muhnot , said in a statement issued here.

SIDBI offers both cumulative and non-cumulative deposit options. In case of non-cumulative option, depositors can opt for quarterly or annual interest payment options. The minimum deposit amount is Rs 10,000 and in multiples of Rs 1,000 thereafter. Nomination facility is also available, the statement said.

The scheme also offers TDS exemption for income upto Rs 5,000 per annum. It comes under the eligible investments for religious and charitable trusts under Section 11(5) of the IT Act, 1961. Deposits are also exempt from wealth tax.

Besides, the scheme also offers direct credit of interest to the depositor's bank account through ECS facility wherever available. Interest and redemption cheques will be encashable 'at par' in the depositor's city, the bank statement said.

Source: EconomicTimes