The SIDBI has announced on today (Wednesday) its plan of offering fixed deposit investment opportunities to the general investors as well as the bulk depositors. The most important point of this offer is that it will offer an annualized return of 9.84 per cent on its 12-13 months fixed deposit scheme. SIDBI has plans to offer many more investment horizons but with different returns.
Out of all the schemes 12-13 month scheme offers the highest return. In case of senior citizens the return is even higher than other investors. On the 12-13 month scheme the senior citizens will earn an annualized yield of 10.38 per cent. The minimum deposit amount is Rs 10,000 and in multiples of Rs 1,000 thereafter. SIDBI offer has been rated AAA by the credit rating agency CARE.
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 month and 9.5 per cent for fixed deposits of 37-60 month duration.
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. Nomination facility is also available, the statement said.
The scheme also offers TDS exemption for income up to Rs 5,000 per annum. It comes under the eligible investments for religious and charitable trusts under Section 11(5) of the I-T 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.