SIDBI offers 9.84 % defer on 12-13 months fixed deposits

The Small Industries Development Bank of India (SIDBI) on Wednesday said that it now offers general investors and bulk depositors an annualised defer of 9.84 % on its fixed deposit system with a period of 12-13 months.

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

SIDBI also offers higher rates of interest of ten.38 % to senior citizens for a 12-13-month period, 9.75 % for fixed deposits of period 14-36 months and 9.5 % for fixed deposits of 37-60 months period.

"Our fixed deposit system is rated 'AAA' by CARE, which is unique for a development bank. SIDBI always benchmarks its rates of interest 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 maximum deposit amount is Rs 10,000 and in multiples of Rs 1,000 thereafter. Nomination facility is also obtainable, the statement said.

The system 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(two) of the IT Act, 1961. Deposits are also exempt from wealth tax.

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

Source: [ET]