Are you looking for a sustainable way to invest your money while earning competitive returns? Look no further than the SBI Green Rupee Term Deposit (SGRTD).
This unique fixed deposit scheme by India’s largest bank, State Bank of India (SBI), offers a win-win proposition for both your wallet and the environment.
What is the SBI Green Rupee Term Deposit?
Launched in 2023, the SGRTD is a special term deposit scheme designed to raise funds for environment-friendly projects and initiatives.
By investing in this deposit, you contribute to India’s green finance ecosystem and promote sustainable development.
Key Features of SGRTD:
- Attractive Interest Rates: The SGRTD offers interest rates higher than regular fixed deposits. As of February 12, 2024, the rates range from 8.40% to 11.15% per annum, depending on the investment amount and tenure.
- Flexible Tenures: Choose from three unique tenures: 1111 days, 1777 days, and 2222 days. This allows you to tailor the investment to your financial goals.
- Environmentally Friendly: Your investment goes towards financing green projects, contributing to a cleaner and healthier planet.
- Safe and Secure: SBI is a trusted and reliable financial institution, ensuring the safety of your investment.
- Convenient Investment: Invest through your SBI branch, YONO app, or internet banking.
How to Open an SBI Green Rupee Term Deposit Account
Opening an SBI Green Rupee Term Deposit account is a straightforward process:
- Visit the Nearest SBI Branch: Locate the nearest SBI branch and visit the branch during business hours.
- Fill the Application Form: Request an application form for the Green Rupee Term Deposit scheme and fill in the required details accurately.
- Submit Necessary Documents: Along with the application form, submit KYC documents and any other required paperwork as per the bank’s guidelines.
- Deposit Funds: Deposit the desired amount into the term deposit account.
- Confirmation and Receipt: Upon successful completion of the above steps, you will receive a confirmation of the deposit along with a receipt for your records.
Who can invest in SGRTD?
The SGRTD is open to all resident and non-resident individuals, including minors and senior citizens. Non-individuals (institutions, companies) can also invest.
Are there any tax benefits?
Interest earned on SGRTD is subject to Income Tax as per your tax bracket. However, there are no additional taxes specific to this scheme.
Things to Consider before Investing:
- Premature withdrawal penalty: Early withdrawal attracts a penalty, making it less suitable for short-term needs.
- Limited liquidity: Your funds are locked in for the chosen tenure.
- Higher interest rates may be available elsewhere: Compare rates with other green bonds or fixed deposits before investing.
Is SGRTD Right for You?
If you prioritize environmental sustainability alongside competitive returns and seek a medium-term investment option, the SGRTD is a compelling choice. However, carefully consider your financial goals and risk tolerance before investing.