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Step up with the State Bank of India

Step up with the State Bank of India

Category: Savings

Updated: 24/11/2017
First Published: 17/08/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers are being given the chance to see their money grow each year with the State Bank of India's 5Year Step Up Fixed Deposit account.

The product requires a minimum investment of £1K and pays 3.25% yearly (3.203% monthly) in the first year, 4.00% (3.9289%) in the second year, 4.50% (4.41%) in the third year, 5.00% (4.889%) in the fourth year and 5.75% (5.604%) to maturity.

Earlier access is allowed on closure only on the anniversary date from the second anniversary, and savers must hold or open a State bank of India savings or current account, although there is no requirement to fund them.

While the headline rate of 5.75% is impressive, clients should consider that the overall rate is 4.50%, the same as can be gained from a straight forward long term bond.

This product is not included in the Moneyfacts Best Buy charts as escalator bonds are not eligible.

Four out of five Moneyfacts stars have been awarded.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.