The State Bank Of India RD allows you to save money through regular monthly deposits. Just choose a specific goal, start an SBI RD and enjoy the maturity at a prespecified time.
SBI Recurring Deposit( SBI RD) allows you to save money in easy monthly instalments. Here, you deposit a fixed sum monthly sum for the chosen duration and a guaranteed lump-sum amount is given at maturity.
Table of Contents
Features of SBI Recurring Deposit
- Deposit Period : 12 months – 120 months
- Minimum Deposit: Rs 100 monthly ((thereafter in multiples of Rs. 10/-)
- Additional Interest: Senior Citizens can avail an additional interest rate of 0.5% over the regular rates.
- Nomination facility: It can be availed when you are making an RD with SBI.
- Investment proof :As an proof of Recurring deposit a passbook entry is given
- Delayed payments: Penalty is charged on delayed payment of instalments.
- OD Limit :You can avail loan/ OD against your SBI recurring deposit. The loan amount may range up to 90% of RD balance amount.
SBI RD Interest Rates 2024
| Interest rates | |
| Highest slab rate | 7.10% p.a. (400 days) |
| 1 year | 6.80% p.a. |
| 2 year | 7.00% p.a. |
| 3 year | 6.75% p.a. |
| 4 year | 6.75% p.a. |
| 5 year | 6.50% p.a. |
| Tenure | |
| Minimum | 1 year |
| Maximum | 10 year |
| Monthly investment | |
| Rs 100 per month and thereafter in multiples of Rs 10 | |
How to Open RD Account in SBI
You can open SBI Recurring Deposit Account either offline or online method.
Offline method
- Visit SBI Branch.
- Fill RD Form
- Mention your basic details, RD amount, Tenure
- RD starts
Online method
- Login your Internet banking
- Open E- RD
- Choose your investment amount
- Choose investment duration
- RD Starts
Documents Required to open SBI Recurring deposit
Proof of Identify
- Voter Id
- Aadhar card
- Passport Copy
- Ration card
- Government ID Card
- Senior Citizen ID Card
Address proof
- Passport
- Electricity bill/telephone bill
- Bank account statement with cheque
- Any certificate or ID issued by any Post Office or similar institution
SBI RD – Non payment Penalty
| If you fail to deposit the monthly RD amount, you must pay a penalty | |
| If RD tenure is up to 5 year | penalty amount is Rs 1.5 for each Rs 100. |
| Tenure above 5 years | penalty amount is Rs 2 for each Rs 100. |
| For example, if your monthly deposit amount is Rs 1000 than your penalty amount will be Rs 1.5 * 10 (for RD tenure up to 5 year) or Rs 2* 10 (for RD tenure above 5 years) | |
| In case six consecutive instalments are not received, the account shall prematurely be closed, and balance paid to the account holder | |
Premature Withdrawal
Premature Closure Allowed subject to premature penalty as under:
- For Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be
0.50% (all tenors). - For Term Deposits above Rs 5.00 lacs, applicable penalty will be 1% (all tenors)
- The interest shall be 0.50% or 1% below the rate applicable at the time of Deposits for
the period Deposit remained with the Bank or 0.50% or 1% below the
contracted rate, whichever is lower. - TDS is applicable as per Income Tax Rules.
- Form 15G/15H can be submitted by the Depositor to get exemption from tax deduction as
per Income Tax Rules.
Recurring Deposit Advantages
- Recurring deposit is highly safe saving scheme with guaranteed returns.
- Low deposit amount – Start with as low as Rs 100 only.
- No maximum limit of monthly investment.
- It’s a boon for risk averse investors.
- One can save a desired corpus by paying small monthly amount.
SBI Recurring Deposit Disadvantages
- Very low interest rates
- Negative Inflation Adjusted returns
- TDS is applicable
- The Profit amount is fully taxable.
- Not suitable for high tax bracket people.
Types of RD account SBI
Nowadays SBI offers two different kinds of RD accounts to cater for the need of different people.
These RD accounts as follows-
SBI Regular Recurring Deposit -This is the basic SBI Recurring deposit with a minimum monthly contribution of Rs 100. The duration ranges from 1 year to 10 years. Here you choose to pay a fixed amount for a fixed duration.
SBI Flexi Deposit Scheme- SBI Flexi Deposit scheme is a variable amount deposit scheme wherein one can deposit a variable amount every month. Here, the minimum monthly deposit amount is Rs.500/- at every deposit. Deposits can be made anytime during a month and any number of times. The yearly minimum deposit amount is Rs. 5,000/- per Financial Year (in multiples of Rs. 500/-)
