The India’s largest public sector bank State Bank of India has recently launched a New special deposit scheme i.e. SBI Green Rupee Term Deposit Scheme.
What is Green Deposit ?
How much money one can deposit in this scheme ?
How much Interest you can earn ?
How this Fixed Deposit will be different from Regular FD ?
Let me clarify all your Questions..!!
1. What is SBI Green Rupee Term Deposit Scheme [GRTDS]?
Do you know about “Fixed Deposits”
I guess all of you are much aware about a Regular Fixed Deposits.
In a Regular Fixed deposit, a lumpsum amount of money will be deposited by the depositors through their Bank accounts and such deposits will be held for a fixed period of time to earn some interest on it.
The recently launched SBI Green Rupee Term Deposit Scheme is also similar to a Regular Fixed deposit. In this Scheme, the regular SBI Bank account holders can deposit their money into this Green deposit scheme and can earn interest depending upon the period they hold. The concept of deposit is same but the how that money will be spent by the SBI is different.
Here, all the money collected by the SBI from these deposits will be spent only for the Environment related scheme projects and related activities only. It means SBI will invest such money into Green Eco System related activities like Renewable energy of Solar, Food, Agriculture Management, Forestry, Reduction of carbon mission etc.,
2. Who are Eligible?
All Indian Citizens, Non-Individuals, NRI’s can deposit money into this scheme.
3. Minimum & Maximum Deposit
The Minimum amount you have to deposit under SBI Green Rupee Term Deposit Scheme should be Rs.1,000/- rupees.
And there is no Maximum amount limit. So, you can deposit any amount of money in to this scheme.
4. Period of Deposit
Under this Green scheme of SBI, you can select only one deposit period out of 3 periods as mentioned below.
1. 1,111 days [i.e. 3 Year 1 Month]
2. 1,777 days [i.e. 4 Year 10 Months]
3. 2,222 days [i.e. 6 Year 1 Month]
Generally in a Regular Fixed Deposit Scheme, the depositors can select the period for which they wants to hold the deposit. It may be between 7 days to 10 years period. But in this Green deposit scheme, you have no such option. Therefore, you need to select one period out of 3 periods before you deposit your money.
In a precise, those who wants to deposit money in this fixed deposit scheme, one should hold their deposit for at least for 1,111 days i.e. upto Minimum period of 3 Years 1 Month.
From the above it is clear that if you are planning to use your money on Long-term goals, like Buying a new Car or Jewellery, etc., then you can deposit your money in this special deposit scheme.
5. SBI Green Rupee Term Deposit Interest rate [For Deposits upto Rs.2 Crores]
SBI Green Rupee Term Deposit Interest Rate
For the SBI Green Rupee Term Deposit Scheme, Bank offers 6.65% Rate of interest per annum on Retail Term Deposit (i.e. for the deposits up to Rs.2 Crores) to the SBI Regular Citizens who holds the deposited amount for a period of 1,111 days or for a period of 1,777 days. Whereas for the same period the Senior Citizens gets 7.15% Rate of interest.
If you are a Regular citizen who holds the deposited amount for a period of 2,222 days, SBI will offer 6.4% Rate of interest and for the same period the Senior Citizens gets 7.40% Rate of interest.
| Tenure [in Days] | Tenure [in Years] | General Citizens | Senior Citizens |
| 1111 Days | 3 Year 0.5 Months (Approx) | 6.65% | 7.15% |
| 1777 Days | 4 Year 10 Months (Approx) | 6.65% | 7.15% |
| 2222 Days | 6 Year 1 Month (Approx) | 6.40% | 7.40% |
From the above chart it is clear that the Regular Citizens will get more interest for 1,111 days period than depositing for 2,222 days period.
6. SBI Regular Fixed Deposit vs Green FD scheme: Which is better ?
Look at the SBI Latest Fixed Deposit rates with effect from 27th Dec, 2023.
| General Public | Senior Citizens | |
| Tenors | Revised Rates for Public w.e.f. 27/12/2023 | Revised Rates for Public w.e.f. 27/12/2023 |
| 7 days to 45 days | 3.50% | 4.00% |
| 46 days to 179 days | 4.75% | 5.25% |
| 180 days to 210 days | 5.75% | 6.25% |
| 211 days to less than 1 year | 6.00% | 6.50% |
| 1 Year to less than 2 years | 6.80% | 7.30% |
| 2 years to less than 3 years | 7.00% | 7.50% |
| 3 years to less than 5 years | 6.75% | 7.25% |
| 5 years and up to 10 years | 6.50% | 7.50%* |
For General Citizens:
From the above chart you can observe that SBI is offering 6.75% rate of interest p.a. if general citizens make a Regular Fixed deposit for a period of 5 years. In case, if you deposit in Green deposit scheme, then you will earn interest @6.65%.
| General Public | General Public | |
| Tenors | Regular Fixed Deposit | Green Rupee Term Deposit |
| 3 years to less than 5 years | 6.75% | 6.65% |
However, If you deposit in a regular FD for a period of 5 years to a period of 10 years, you will get 6.50% rate of interest and in case of Green deposit scheme, you will get 6.40% rate of interest p.a..
| General Public | General Public | |
| Tenors | Regular Fixed Deposit | Green Rupee Term Deposit |
| 5 years and up to 10 years | 6.50% | 6.40% |
For Senior Citizens:
In case of Senior Citizens, SBI is offering 7.25% rate of interest for the deposited period of 3-5 years. In case of Green deposit scheme, the rate of interest is 7.15%. p.a.
| Senior Citizens | Senior Citizens | |
| Tenors | Regular Fixed Deposit | Green Rupee Term Deposit |
| 3 years to less than 5 years | 7.25% | 7.15% |
However, If you deposit in a regular FD for a period of 5-10 years, then Senior Citizens will get 7.50% rate of interest, and in case of green deposit scheme, you will get 7.40% rate of interest.
| Senior Citizens | Senior Citizens | |
| Tenors | Regular Fixed Deposit | Green Rupee Term Deposit |
| 5 years and up to 10 years | 7.50% | 7.40% |
7. How to apply
To deposit money in SBI Green Deposit Scheme, you have to visit your SBI home branch and join in it. As there is no online facility of SBI Internet Banking or SBI Yono facility at present to deposit through this scheme. But there is a good chance that it will be available in online very soon.
8. Other Benefits and Features
In case if you need of money anytime, then, you can Pre maturely withdraw your deposited money but you should remember that you will loose your interest in the form of penal interest.
And also one can avail loan facility and also you have the facility to add a Nominee for your deposit.
Also, there is a chance that you can deduct banks TDS as per income tax act on the yearly earned interest. If the interest paid to you by the bank is more than Rs. 40,000/-, then 10% TDS will be deducted by the Bank.
For senior citizens, 10% TDS will be deducted if the interest income exceeds Rs.50,000/-.
9. Final Analysis
This SBI’s initiative towards the environment is highly appreciable. Because as you know how dangerous the pollution levels are rising in almost every part of India. If you see the city Delhi, you might have seen how much trouble the people of Delhi are facing with the pollution and the daily pollution levels sirening danger bells.
Undoubtedly the Public sector bank made a good move to reduce the carbon emission and to protect the environment.
Whereas, coming to your money point of view, if you compare Regular FD with SBI Green Deposit Scheme then there is a clear picture that both the Regular citizens and Senior citizens will earn more interest in regular FD only rather than SBI Green Rupee Term Deposit Scheme.
State Bank of India might have taken proper steps to give better fixed deposit rates under the new scheme at least for few months to attract their customers. I strongly agree that Purpose is great but at the end of the day the Customer should also get more money.
Thanks for your Read 🙂
