SBI launched Utsav Deposit Scheme in 2009, during the Diwali festival, in collaboration with UTI (Unit Trust of India). This Scheme was meant to attract retail investors and allow them to invest money in these schemes without hassle or difficulty. This Scheme was valid till the end of 2010, after which it was closed due to a lack of participation from people who did not know enough about mutual funds and investment options.
Information on the Utsav schemes
SBI’s Utsav Deposit Scheme is a great way to save money for festivals and other special occasions. With this Scheme, you can deposit money into an account and earn interest. The account can be used to withdraw cash or make payments for festive expenses. This Scheme is available for a limited period, so it is essential to open an account as soon as possible.
To be eligible for an Utsav deposit scheme, you must:
• Be an Indian resident.
• Have a bank account with State Bank of India.
• Have a minimum balance of Rs. 5,000 in your account.
• Be aged 18 years or above.
• Have a PAN card or Form-60 or Form-61 and address proof such as Aadhaar Card, Voter ID Card, Passport, Driving License.
• Maintain a monthly average balance of at least Rs.5,000 (excluding withdrawals).
• Do not exceed their overdraft limit or the credit limit on any one of their cards (maximum 3 cards).
• Not withdraw more than three times from ATMs within a month.
• Do not undertake any cash transactions exceeding Rs.25,000 per day per card during the first six months of opening an account under this Scheme.
• Not issue cheques.
• Complete KYC formalities and
• Comply with instructions issued by the bank periodically to ensure that the customer is complying with the terms and conditions of this Scheme.
Interest Rates of Utsav Deposit Schemes
The interest rates on the Utsav Deposit Scheme from the State Bank of India (SBI) are desirable. With a minimum deposit of Rs. 1,000, you can earn an interest rate of 7.25% per annum. This is a great way to save money for short-term goals such as vacations, new gadgets, or even emergency funds. However, the interest earned is also taxable, so be sure to factor that in when planning your savings.
Some Things to Consider SBI’s Utsav Deposit Schemes
If you’re considering opening an account with SBI, you may wonder about their Utsav deposit schemes.
Here are some things to consider before making a decision for Utsav Deposit Schemes
• First, what is your financial goal? Do you want to save for a short-term goal, like a vacation or a new car, or are you looking to invest long-term?
• Second, how much money do you have to deposit?
• Third, how often can you make deposits into the account?
• Fourth, which bank offers the best interest rates on savings accounts in India?
These essential questions should help you make a more informed decision on whether to open an account with SBI and which of their Utsav deposit schemes would be best for your goals and needs.