Open of an e-TDR or e-STDR through Online SBI
TDR, STDR, MOD are term deposits or Fix deposit in terms of common citizen and RD is a Recurring deposit. “A kind of gullak account in which you deposit money monthly and will get your money with interest at maturity”.
This article guides you on, How to Open of an e-TDR or e-STDR through Online SBI, SBI Internet Banking Portal.
Using SBI Internet Banking via Online SBI, it’s relatively very easy to open a fixed deposit which can be open anytime anywhere in a day during the working hours. You can also open an e-Fixed Deposit or e-TDR/e-STDR under Income Tax Savings Scheme (SBITSS). This e-Fixed Deposit allows you to avail tax exemptions while earning interest.
What is an e-TDR or an e-STDR?
TDR means Term Deposit and STDR means special term deposit.
Following are the main differences between a TDR or an STDR.
TDR – Term Deposit
Fixed Deposits are also called Term Deposits because they are invested for a fixed term or tenure. In other words, A Term Deposit (also called a TD) is an FD where you choose the term.
If you are interested in getting periodic payments from your fixed deposit after a short period like a week, month or quarterly, you have to deposit under TDR scheme. Bank will pay you the normal interest rate on your fixed deposit as per the payout option is chosen by you.
If you are not interested in getting periodic payments but looking for interest accrual and a bullet payment at the end of the term then you have to opt for STDR. The advantage of this scheme is that it will be quarterly compounding. The interest is calculated on the quarterly basis and at the end of each quarter, the same get added to the principal. As a result, your yield to maturity will be higher. So, You get a higher interest rate in comparison to a regular fixed deposit.
Special Term Deposits have special term periods like 333 days or 555 days. With a Special Term Deposit, you get a better interest rate which would be higher than regular FDs.
Term deposit requires the entire principal amount to be deposited while opening the account.
As you have now understood what a TDR and an STDR, the e-TDR and e-STDR are nothing but the versions of the fixed deposit that are created electronically.
How to choose between TDR and STDR?
If you want a regular interest income, a Term Deposit is your best bet. But if you prefer to see your money grow, a Special Term Deposit would be a better bet.
Procedure to Open an e-TDR OR e-STDR:
Both have similar procedure however they differ it as the steps progress.
- Log in to Online SBI – Net Banking For SBI Customers
- Click on e-Fixed Deposit Tab
- Select a type of deposit account to proceed.There are 3 types:e-TDR / e-STDR (Fixed Deposit)
e-TDR / e-STDR under Income Tax Saving Scheme
e-TDR / e-STDR (MOD) Multi Option DepositSelect the type of Deposit you want.
- Select the Account Number you want to get debited.
- Enter an amount.
- Select between the term deposits options.There are two types:STDR (Cumulative – Interest paid at maturity).
TDR (Non-Cumulative – Interest paid at selected intervals).
- Click on Accept.
- Then Click on Submit.
- Save your FD Details.
Great, you have successfully created a Fixed Deposit.
Thanks for reading this article, hope you found it useful, if you have any doubts or questions, you may ask us in the comments below.