The State Bank of India (SBI), the biggest bank in India, has come out with a new fixed deposit scheme called SBI Green Rupee Term Deposit or SGRTD. This innovative initiative is directed at the development of a green finance ecosystem in India, which mobilizes funds for sustainable environmental initiatives and projects.
Key Highlights
Objective: Source eco-sustainable funding.
Eligibility: From resident individuals, and non-individuals to NRI customers, it is available to all.
Tenors: Choose from three tenors – 1111 days, 1777 days, or 2222 days.
Interest Rates: Slightly lower than normal FDs (by 10 bps) but still competitive
Additional Benefits: There are bonus interest to senior citizens, premature withdrawal permitted and loan or overdraft facilities available.
Green Deposit: Native funds towards green finance at RBI revelling.
Availability: Currently, its presence can be seen may it is the physical branches or soon on digital channels like YONO and INB.
SBI Chairman Dinesh Khara stated: “The SGRTD scheme is a demonstration of the endeavour made by us to achieve sustainable finance. With this move, we are taking India closer towards its net zero carbon goal by 2070 and giving it probable access to a greener future.”
Here’s a detailed breakdown of the scheme
- Eligibility: Available to all: individuals, non-individuals as well as NRIs.
- Investment Options: You may select from the three tenors: 1111 days or 3.04 years, 1777 days or 4.87 years, and 2222 days or 6.08 years.
- Investing: Currently, accessible through SBI branches and will shortly be on digital platforms such as YONO and INB.
- Interest Rates: Retail Deposits:1111 days: 6.65%
- 1777 days: 6.65%
- 2222 days: 6.40%
- Bulk Deposits (above Rs. 2 crore):1111 days: 6.15%
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- 1777 days: 6.15%
- 2222 days: 5.90%
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- Senior Citizens: Receive more interest on top of the applicable rate.
- Premature Withdrawal: As per the terms and conditions, allowed.
- Maturity Instructions: Follow existing term deposit procedures.
- Loan Facility: Available against the deposit.
- TDS: In compliance with the income tax guidelines.
Also Read: NPS Delivers Up to 28% Returns on Equity: Who are the best Pension Fund Managers?
What is Green Deposits?
The SGRTD budget belongs to the RBI’s Green Deposit scheme where funds are directed towards green financing projects. This ensures that your investment directly contributes to environmental conservation.
Why Choose SGRTD?
- Support Green Initiatives: This investment goes directly into environmentally conscious financing projects.
- Competitive Returns: Attractive interest is received on the deposit.
- Flexible Tenors: Pick a tenor consistent with your investment objectives.
- Senior Citizen Benefit: Senior citizens enjoy better returns.
- Safe and Secure: Deposits insured by DICGC.
Comparison with Regular FDs
Although having slightly lower interest rates compared with the normal FDs, SGRTF offers an innovative way to invest in a green future. Also, that the tenors and characteristics resemble already known FD schemes enable us to consider it as a familiar yet flexible method.
Conclusion
The SBI Green Rupee Term Deposit is an admirable initiative by India’s largest bank. It provides individuals and banks an opportunity to invest their money while protecting the environment. The SGRTD offers competitive interest rates, flexible tenors and convenient access which make it a great choice for individuals who wish to have both financial returns as well as environmental benefits.
Therefore, if you are one of those people who would like to invest in a manner that is socially responsible and contributes towards sustainability, the SBI Green Rupee Term Deposit deserves your attention.
Read More: SBI’s Three-Year FD Rates vs Post Office Term Deposit Rates: A Comparative Analysis
