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SBI RD Interest Rates

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SBI recurring deposit comes with excellent features and benefits. With term period ranging from 12 months to 120 months in addition to the attractive SBI RD interest rates offered which vary between 6.70% to 6.85% for regular customers and an additional interest rate hike of 0.50% for senior citizens, it is one of the most sought-after recurring deposits in India.

SBI Recurring Deposit Interest Rates

Tenure Regular RD Interest Rates Senior Citizen RD Interest Rates
1 Year to less than 2 year 6.70% 7.20%
2 years to less than 3 years 6.75% 7.25%
3 years to less than 5 years 6.80% 7.30%
5 years and up to 10 years 6.85% 7.35%

*The above interest rates is effective from 30 July 2018, for investments less than Rs.1 crore in p.a.

Important Information to Note for SBI Recurring Deposit Scheme

Minimum Amount to be Deposited Rs. 100 (The deposit should be made only in multiples of Rs.10)
Tenure 12 months to 120 months
Additional Interest Rate for Senior Citizen 0.50%
What is the Maximum Interest Rate Offered by the Bank and for what Tenure? 6.75%, 5 years to 10 years
Loan Against Deposit Up to 90% of the balance available in the SBI recurring deposit account can be used as loan amount.
TDS on RD TDS will be deducted as per the income slab to which the applicant belongs.
Penalty on Delay
  • If the term period of the recurring deposit account is less than or equal to 5 years, the charge levied is Rs. 1.50 per Rs.100 per month.
  • If the term period of the recurring deposit account is more than 5 years, the charge levied is Rs. 2 per Rs.100 per month.
SBI RD Interest Rates

Eligibility Criteria for SBI Recurring Deposit Account

A person is eligible to open a SBI Recurring Deposit Account if:

  • He or she is a resident of India.
  • He or she is a member of the Hindu Undivided Family (HUF).
  • If the person who wants to open an RD account with SBI, he or she can do so through NRE/NRO account.
  • Any minor under the guardianship of legal or natural guardian.
  • He or she is already holding a savings account with SBI.
  • He or she is looking to keep the money in the SBI RD account for at least 12 months.

Documents Required to Open SBI Recurring Deposit Account

If you are an existing SBI account holder, you will be allowed to open a Recurring Deposit Account through net banking or visiting the bank. However, if you do not have an existing SBI Account, you will require the following documents:

  • Proof of identity
    • Copy of your passport
    • PAN Card
    • Aadhaar Card
    • Voter ID
    • Driving Licence
    • Ration Card
    • Government ID Card
    • Senior Citizen Card
  • Proof of residence
    • Copy of your passport
    • Aadhaar Card
    • Electricity bill
    • Phone bill
    • Bank statement with cheque
  • Recent passport size photographs
  • Duly filled application form

How to Apply for An SBI Recurring Deposit Account?

  • If you are an existing SBI account holder, you can use your netbanking username and password to login to your online account and open an e-RD right away. However, if you do not have your netbanking credentials, you can always walk into your nearest SBI branch.
  • If you are not a SBI account holder, you will have to open an SBI savings account first. After your account is active, you will be allowed to open a e-RD by login into your netbanking.

SBI Recurring Deposit: Premature Withdrawal Rules

State Bank of India allows their customers to withdraw their RD money prematurely. If the customer withdraws the RD money before it matures, the bank will charge a nominal penalty. Please note that State Bank of India does not allow partial withdrawals on their Recurring Deposits.

Medium-Term and Long-Term SBI RD Interest Rates

For medium-term tenure, the highest rate of return offered by SBI is for 3-5 years period which is 6.70% for regular citizens and 7.20% for senior citizens. For the term period 1 to 2 years, the rate of return offered by the bank is 6.65% for regular citizens and 7.15% for senior citizens. As far as long-term tenure is considered, the rate of return offered by SBI for a period of more than 5 years and less than 10 years is 6.75%.

SBI RD Interest Rates for Senior Citizen

For senior citizens, State Bank of India’s rate of return is 0.50% greater than that for regular citizens. For a medium term tenure, the rate of interest offered by SBI recurring deposit scheme ranges from 7.15% to 7.20% and for a long term tenure the rate of return is 7.25%.

Types of Recurring Deposits Offered By SBI

SBI offers two types of recurring deposits, namely the SBI Regular Recurring Deposits and SBI Holiday Savings Account.

  • SBI Regular Recurring Deposits: This is the most common and preferred recurring deposit account offered by SBI. This can be opened by account holders for no particular reason but just for savings. Account holders can open an SBI Regular Recurring Deposit Account by making minimum monthly deposits of Rs.100 or more as per the customer's wish. The tenure of the RD ranges between 1 year to 10 years. The rate of interest will be declared by SBI from time to time.
  • SBI Holiday Savings Account: If you are someone who loves to travel, this is for you. SBI Holiday Savings Account is a product that was formed when SBI joined hands with the leading travel advisory company, Thomas Cook. Under this account, customers can deposit a certain sum of money every month with SBI with an intention to avail a vacation that is listed under the Holiday Savings Account packages on the Thomas Cook Website.

Once you choose a vacation on Thomas Cook website, the total cost of the package will be divided by 13 months and you will be redirected to the SBI website to set-up a e-Recurring account for 12 monthly installments. You will also earn interest on this type of RD.

SBI Flexi Deposit RD Scheme

Apart from the above recurring deposits, SBI also offers “SBI Flexi Deposit Scheme” which is very similar to the recurring deposit.

  • Under the SBI Flexi Deposit Scheme, instead of paying one fixed amount every month, the account holder can change the deposit amount every month.
  • The minimum deposit amount should be Rs.5,000 in one financial year and the maximum deposit amount can go up to Rs.50,000 p.a.
  • The minimum tenure of this deposit scheme is 5 years and the maximum tenure is 7 years.

SBI Recurring Deposit: Is it the best way to save?

Any kind of saving is good. Recurring Deposit has its own advantages. As the funds get debited from your saving account automatically every month on a given date, you will be saving without spending all you have.

However, Recurring Deposits are not ideal if your motive is to double the money to create wealth. If wealth creation is your motive, you can choose to invest in Mutual Funds or Systematic Investment Plan. If your motive is to save every month, you can choose to open an RD.

Tax benefits on SBI Recurring Deposit

The money you deposit in an SBI Recurring Deposit Account is taxable under the Income Tax Act 1961. The amount you invest in an RD will be mentioned in your TDS (Tax Deducted at Source) form. A 10% tax is applicable on the interest you have earned if you have gained more than Rs.10,000 in one year.

If you wish to save tax on the interest you gained through your SBI Recurring Deposit Account, you can do so by filling either Form 15G or Form 15H.

When to fill a Form 15G?

  • If you are an individual or HUF.
  • If you are a resident of India.
  • If the tax calculated on your total income is zero.
  • If the total interest you earned for one year is less than the minimum exemption limit for the particular year. The minimum exemption limit for the year 2016-2017 is Rs.2,50,000.

When to fill a Form 15H?

  • If you are 60 years old or will be turning 60 years old during the year you are submitting the Form 15H.
  • If you are an individual or HUF.
  • If you are a resident of India.
  • If the tax calculated on your total income is nil.

SBI Recurring Deposit Calculator

Most people opt for recurring deposits to earn something extra on their savings. The maturity amount on your RD depends on various factors like the RD deposit amount, rate of interest offered by the bank, tenure of the RD, TDS,and other such factors.

There are many website that offer Recurring Deposit Calculators. You can use any one of these to calculate the interest you would earn on your recurring deposit.

FAQs on SBI Recurring Deposit

  1. Can a SBI recurring deposit account be opened through net banking?

    Yes, a SBI recurring deposit account can be opened via net banking.

  2. In whose name is a SBI recurring deposit account opened?

    The name of the account holder of the recurring deposit account will be same as the account from which is money is being funded into it.

  3. What are the different accounts using which a SBI RD account can be opened?

    Any account that is valid, not in a dormant/stopped/locked state can be used to open a SBI RD account.

  4. Can the money received after the maturity of an RD be transferred to any account?

    No, the money received on the maturity of an RD account can only be transferred to the account which originally funded it.

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar’s partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.


News About SBI Recurring Deposit

  • Banks Are Reducing Interest Rates On Their Savings Bank Accounts

    In a recent interview, State Bank of India stated that banks are forced to considering to reduce their interest rates due to the rate of inflation and increasing high real interest rates. After the leading bank in our country, SBI reduced their interest rates, six more banks has followed the trend.

    On 31st July 2017, State Bank of India has reduced their interest rate by 50 basis points and brought it down from 4% to 3.5% p.a. On all deposits up to Rs.1 crore. For deposits above

    Rs.1 crore is not changed and remains it to be 4%. p.a.

    Axis Bank, Indian Bank, Bank of Baroda, Karnataka Bank, Yes Bank, and HDFC Bank are some of the few banks that reduced their interest rate.

    18 August 2017

  • State Bank Of India Reduces The Interest Rate On Savings Bank Account

    Recently, State Bank of India cut the interest rate on savings bank account by 0.5% and fixed it at 3.5% p.a which is the lowest interest rate on saving bank account in the last 6 months. This move is expected to affect about 90% of the SBI customers.

    The leading bank, SBI announced this decision just 2 days before the RBI’s Monetary Policy Meet which is expected to trigger a lot of disputes among other peer banks.

    In another statement, The bank has stated that they will continue to provide 4% interest rate per annum on savings bank with deposits above Rs.1 crore. This may affect other rate of interest too. If you have a recurring deposit or a fixed deposit please confirm the rate of interest with the bank.

    14 August 2017

  • SBI Reduces NEFT and RTGS Charges Up To 75% As Consumers Crib

    From the time the charges on National Electronic Funds Transfer (NEFT) and Real-time gross settlement systems (RTGS) payment transfers were increased, account holders across India protested and expressed their dissatisfaction. Listening to the cries of their customers, the leading state-run bank in our nation, State Bank of India has reduces their NEFT and RTGS fees up to 75%.

    Also, the bank stated that they will waive charges on Immediate Payment Service(IMPS) for transfers up to Rs.1,000. This new charges will be applicable from 15 July 2017 on all the payment transfers made through internet banking and mobile banking services.

    Going forward, NEFT charges for transfers up to Rs.10,000 will be Rs.1, for transfers more than Rs.10,001 to Rs.1 lakh, the charge will be Rs.2, Rs.3 will be charged for transfers between Rs.1 lakh and Rs.2 lakh, and Rs.5 will be charged for NEFT transfer more than Rs2 lakh. On the other hand, the RTGS transfer charges for transactions between Rs.2 lakh to Rs.5 lakh will be Rs.5 and for transfer above 5, the RTGS charge will be Rs.10.

    19 July 2017

  • Interest Rates On Long-Term Deposits To Be Lowered?

    With the reduction in interest rates for various small savings schemes, there is speculation that long-term interest rates will also be affected.

    The government has reduced interest rates by 10 basis points and this could spur banks to also reduce rates for their long-term deposits.

    State Bank of India (SBI) offers 6.25% on term deposits for up to 5 years. Since the benchmark marginal lending cost is based on the cost of funds in a bank, a reduction in interest rates would result in the cost of funds dropping, which in turn would reduce the lending rate.

    1 July 2017

  • SBI Decreases Interest Rate on Term Deposit

    From March 1, the interest rate of term deposits of SBI has been decreased. For a tenure of 180 days to below 1 year, the interest rate is 6.5% and for a tenure of 456 days to below 3 years, the interest rate is 6.75%. For Senior citizens, the interest rates for the same tenures is 7% and 7.25% respectively. Even after the reduction in rates, SBI will earn more than its rivals. After demonetization, banks saw an increase in deposits, which are now reducing

    3 March 2017

  • SBI Slashes Bulk Deposit Rates

    Last week, State Bank of India (SBI)reduced interest rates for bulk deposits at 15 basis points on all one, two and three year tenors immediately. Axis Bank on the other hand cut marginal cost of lending rate (MCLR) post demonetization of Rs500 and Rs1000 notes lead to rise in deposits. All banks across the country have experienced a rise in deposit products which has made banks take the decision of further reducing deposit rates. SBI term deposits which have a tenor of 1 year to 455 days, 456 days to 2 years and 2 to 3 years have deposit rates that are 6.90%, 6.95% and 6.85% respectively.

    28 November, 2016

  • SBI Cuts Rates on Bulk Deposits

    PM Modi’s fight against black money has intensifies, with banks receiving large deposits over the last month or so.

    Taking this as a cue, State Bank of India, India’s largest public sector bank, has decided to slash interest rates on bulk deposits.

    The interest rates have been cut by about 125 to 190 basis points and has supposedly been arrived upon due to the easy availability of funds.

    While all Indian banks have received over Rs.5.4 lakh crores from November 9-18, SBI alone has received up to Rs. 1.5 lakh crores, as suggested by RBI.

    SBI came to this decision after several other banks also decided to lower the rates as money felt flowing in at an incredible rate over the last month or so.

    24 November, 2016

  • State Bank of India Slashes FD Rates to 7.05%, 6 Year Low

    In a huge setback for customers, State Bank of India has reduced the interest rate on its one-year Fixed Deposits to a six year low of 7.05%. This was done after the most recent round of cuts put forth by the largest bank in India and saw rates on two-year and three-year deposits being increased to 7% and 6.5%, respectively. The last time such as incident occurred was between October 1 and December 7 in the year 2010 when the rate of interest was down to 7%.

    SBI’s peer in Delhi, the Punjab National Bank has reduced the rate of interest on one-year deposits by 5bps or basis points to 7.2% and those on 2-year and 3-year deposits by 10bps or base points each to 7.05%. Bank of Baroda has maintained the rate of interest on Fixed Deposits of one and two years, but has decreased the interest rate on 3-year deposits by 5 base points to 7.25%. Important lenders from the private sector such as HDFC Bank, Axis Bank and ICICI Bank have held rates on their one-year, two-years and three-years deposit at 7.25%.

    Reducing the rates on fixed deposits are necessary for banks to maintain their margins while transmitting the Reserve Bank of India’s rate cuts, which has amounted to 175 base points since the January of 2015 to borrowers. Borrowers are likely to get better deals but fixed deposits are also becoming increasingly unappealing for savers.

    3 November 2016

  • SBI Cuts Deposit Rates

    State Bank of India has cut its term deposit rates (for deposits of up to Rs.1 Crore) by 10 to 50 basis points across various maturities. Starting from November 1, 2016, the bank will offer a maximum interest rate of 7.1% on deposits with a tenure of 456 days to below 2 years. The current interest rate for the same is 7.25%. The bank has announced that its senior citizen customers will receive 50 basis points more than the card rates from November. At present, senior citizens receive 25 basis points above the card rates. One basis points equals to 1-hundredth of a percentage point.

    29 October 2016

  • SBI Cash Deposit Limit Increased

    State Bank of India has bumped up the limits on cash deposits allowed. Customers can now use the Cash Deposit Machines to deposit up to Rs.2 lakhs. This is already in effect. Earlier, the limit was Rs.49,900 which was a significantly low amount. The Cash Deposit Machines can also be used to make payments towards PPF and loan EMIs. Customers can utilise the machines to make their contributions towards their recurring deposit accounts as well. The Cash Deposit Machines will eliminate the need to go to SBI branches and transactions can be carried out quickly on the machines.

    13 September, 2016

Recurring Deposit - Sitemap

SBI RD Rates Reviews

Page 1 of 4 1 2 3 4
  • SBI Recurring Deposit
    "Good Savings"
    0.5 5.0/5 "Blown Away!"
    Right now SBI RD interest would be 9% per annum, we can make the deposit from Rs.1000 to max, we have the option to prolong the tenure. But I have opt for one year for recurring deposit. I done everything through online, I can withdrawal RD through netbanking.
    Was this review helpful? 1
    , bangalore
    Reviewed on Feb 07, 2019
  • SBI Recurring Deposit
    "Need improvement on their services"
    0.5 4.0/5 "Great!"
    I have been using the recurring deposit with SBI for last 11 years. There is no specific reason for choosing the SBI. I'm happy about the interest rate provided to me. I have visited their branch and i need to wait for a long time in a queue and the staffs were not upto the mark however they need to improve a lot.
    Was this review helpful? 14
    , bangalore
    Reviewed on Dec 21, 2018
  • SBI Recurring Deposit
    "Good Service"
    0.5 4.0/5 "Great!"
    I have a recurring deposit with the SBI. I deposit 2500 every month, they offer a nominal interest rate of 6.5% per year. There no huge returns but it very good for savings purposes. I never faced any difficulty with their services. with respect to savings account.
    Was this review helpful? 36
    , mumbai
    Reviewed on May 22, 2018
  • SBI Recurring Deposit
    "Good service"
    0.5 4.0/5 "Great!"
    I have a Recurring Deposit with SBI from last 7-8 years, the experience was good so far and i did not face any issues with this bank. Customer support team gave all the right information and there was no delay in the services. I pay an amount of Rs 8000 every month and i get 9% interest on returns and i am satisfied with it.
    Was this review helpful? 9
    , new delhi
    Reviewed on Jan 23, 2018
  • SBI Recurring Deposit
    0.5 5.0/5 "Blown Away!"
    I have my car loan with SBI 3 years . The loan amount was5 lakhs and the rate of interest was 9.8% which was satisfactory .The customer service and responses was good . The pre closure is after 1 year and the processing fee was 1100. My overall experience was good.
    Was this review helpful? 8
    , pune
    Reviewed on Nov 20, 2017
  • SBI Recurring Deposit
    "Good service"
    0.5 4.0/5 "Great!"
    As I have a savings account with State Bank of India I started a recurring deposit account with them. But I'm really not sure about the interest rates they provide me but it's good for both my RD accounts in this State bank of India as well as the other bank IOC.
    Was this review helpful? 6
    , kolkata
    Reviewed on Nov 17, 2017
  • SBI Recurring Deposit
    "Not a good investment"
    0.5 2.0/5 "Expected more"
    I created this Recurring Depoist account some time back and the return I got was little disappointing. I had paid Rs.10000 every month and was expecting a 7.25% Interest. But at the end, after the cut of all taxes I recieved only 4.5% profit, which for me is pure waste of investment.
    Was this review helpful? 10
    , ghaziabad
    Reviewed on Oct 29, 2017
  • SBI Recurring Deposit
    "Good investment"
    0.5 4.5/5 "Excellent!"
    Every month I am investing Rs.3000 for the tenure of one year. After the tenure period I would receive the 7.5% of interest along with the investment amount, I opened the RD through online, I could track the details in mobile application, Iam fine with their benefits.
    Was this review helpful? 5
    , navi mumbai
    Reviewed on Sep 27, 2017
  • SBI Recurring Deposit
    "Recurring deposit"
    0.5 4.0/5 "Great!"
    Every 6 months the money would get debited from my salary account and would get transferred to Recurring Deposit. Its mainly because I have opted for a AUTO PAY. Interest rate offered by 6.25% no tax benefits i guess.
    Was this review helpful? 4
    , vadodara
    Reviewed on Sep 23, 2017
  • SBI Recurring Deposit
    "Good to plan anything"
    0.5 4.0/5 "Great!"
    Last 10 years I have a RD account with SBI, every month I pay the amount of Rs.10,000 for the tenure of one year, So far I got the interest rate of Rs.52,000 the current intrest of SBI for RD around 6.7% on yearly basic. I normally do auto debit from my account, I could view RD summary in SBI netbanking
    Was this review helpful? 5
    , ahmedabad
    Reviewed on Jul 07, 2017
  • SBI Recurring Deposit
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have recurring deposit account with State bank of India. The period is for one year and the deposit amount is for thirty five thousand. I am satisfied in opening RD account with SBI, because the interest rate is quite good with them than other banks.
    Was this review helpful? 14
    , indore
    Reviewed on May 04, 2017
  • SBI Recurring Deposit
    "Good For Future"
    0.5 5.0/5 "Blown Away!"
    I opened my SBI Recurring deposit account through online, Already the bank has my KYC details. It not mandatory to submit my documents. I used to Rs.2000 in monthly basis for 5 Years. SBI provides the interest rate of 9% for the RD, It is useful for me to invest my money.
    Was this review helpful? 61
    , nasik
    Reviewed on Feb 07, 2017
  • SBI Recurring Deposit
    "Its good"
    0.5 4.0/5 "Great!"
    I visited to the SBI branch to open RD account. SBI deducts some amount from my account in monthly basis, After seven years of tenure they will provide some cumulative interest of 8.5% from the amount paid. It was really good and useful policy.
    Was this review helpful? 23
    , tiruchirapalli
    Reviewed on Dec 14, 2016
  • SBI Recurring Deposit
    "My SBI RD"
    0.5 5.0/5 "Blown Away!"
    SBI RD is really good. I am holding this RD for the last 5 years. The rate of interest that I earn on my RD is the best. I had applied for this RD online and it took hardly 10 minutes to open this RD online and no additional documents required for the same.
    Was this review helpful? 28
    , varanasi
    Reviewed on Nov 24, 2016
  • SBI Recurring Deposit
    "Good "
    0.5 5.0/5 "Blown Away!"
    I have had an earlier experience of a recurring deposit with SBI Bank. I get the details related to RD from online.It was an easy process and the rate of interest was also good. There is no locking period with SBI and the rate is around 8% for the recurring deposit.
    Was this review helpful? 32
    , hyderabad
    Reviewed on Jun 30, 2016
  • SBI Recurring Deposit
    "Good experience"
    0.5 4.0/5 "Great!"
    I have had an earlier experience of a recurring deposit at SBI Bank. They had a tenure of six months. I extended my account to a year. The executive came over to my place and I filled in the documents. I only had to visit the bank once when I closed the account. It was a easy process and the rate of interest was also good.
    Was this review helpful? 10
    , bangalore
    Reviewed on Jun 28, 2016
  • SBI Recurring Deposit
    "Average "
    0.5 3.5/5 "Pretty good"
    Customer need to visit their office for each process which is a drawback.Initially the rate applied was around 9.25% for the recurring deposit but now a days they have changed to 8% from SBI.The customer support and response offered was not nice with SBI Bank.
    Was this review helpful? 10
    , chennai
    Reviewed on Jun 22, 2016
  • SBI Recurring Deposit
    "Process can be made on online "
    0.5 3.5/5 "Pretty good"
    SBI has to make the process easy for the customer in making payment for recurring deposit.They give a cheque or DD for making payment instead there can be some online options to make the process very simple.The rate offered was good for recurring at that time but now its been reduced with SBI Bank.
    Was this review helpful? 10
    , chennai
    Reviewed on Jun 17, 2016
  • SBI Recurring Deposit
    "Satisfactory "
    0.5 4.0/5 "Great!"
    Recurring deposit interest rate is approximately 7% for the minimum lock in period of 12 months from SBI bank. The minimum amount o start plan is Rs.500.After completing the tenure period the amount will be credited to the account but we have to visit the nearest bank to oprn the RD account
    Was this review helpful? 22
    , bangalore
    Reviewed on Jun 03, 2016
  • SBI Recurring Deposit
    "Simply Good"
    0.5 3.0/5 "Satisfactory"
    With the State Bank of India, I do have recurring deposit and its not much approachable but the good thing is security. Automatic deposit to savings account will not be available like I have to do everything by traditional account. Its been an year of time and the interest rate is pretty good.
    Was this review helpful? 15
    , bangalore
    Reviewed on May 06, 2016
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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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