SBI offer 8.5% interest per annum on Bulk deposit of Rs. 1 crore and above for a period of minimum 7 Days till 180 Days. The customer can withdraw the whole money or a portion of that anytime after 7 days without any change in interest rate. There is no penalty for the early withdrawal of your deposit. But if you withdraw money before completing 7 days you will not get any interest. This deposit plan is suitable for individuals and institutions, because the investor can enjoy high liquidity as well as high interest rate.
Those who do not have such a big amount to deposit in this scheme (Rs. 1 Crore), you can avail the benefit with a small difference in interest rate. You will get an interest of 7.25% per year for the investment from 7 days to 179 days. This deposit offer liquidity as same as a savings bank account but offer a high interest rate than savings bank account. State Bank of India Unfixed Deposit scheme offer an interest rate almost equal to a fixed deposit, but for fixed deposit you can withdraw money only after the time period of investment, if not whole or a part of interest may lose.
The interesting thing is that you can withdraw money from your unfixed deposit without any prior notice, but without losing interest if the withdrawal is after 7 days of deposit.
Income Tax and TDS: The interest on unfixed deposit is treated as same as interest on fixed deposit for tax purpose. See How to avoid TDS from interest
Partial withdrawal: In case of partial withdrawal the balance amount will attract the same interest rate till the closing of account.
We strongly recommend you to keep your money in SBI unfixed deposit and enjoy high interest rate as a fixed deposit and high liquidity which is almost equal to a savings bank account. Whenever you need money withdraw without losing any interest for the time period.
SBI Unfixed Deposit Gives High Interest and High Liquidity