State Bank of India allows you to open an Recurring Deposit account with the bank for a minimum deposit of Rs.100. You can choose to open an RD account with the lender for a period that ranges between 12 months and to 10 years. The interest offered by the bank to citizens on deposits below Rs.2 crore is between 5.10% p.a. and 5.40% p.a. Citizens who fall in the bracket of senior citizens are offered additional interest of 0.50% p.a. on all tenures.
Know more about Recurring Deposit
SBI Recurring Deposit Interest Rates
|Tenure||Interest Rates (p.a.) for Public||Interest Rates (p.a.) for Senior Citizens|
|1 year to less than 2 years||5.10%||5.60%|
|2 years to less than 3 years||5.10%||5.60%|
|3 years to less than 5 years||5.30%||5.80%|
|5 years to 10 years||5.40%||5.90%|
Note: The interest rates mentioned in the table are effective as of 19 June 2020. .
Important Information About SBI Recurring Deposit Scheme
|Minimum Deposit Amount||Rs. 100 monthly (for any higher amount, deposit in multiples of Rs.10)|
|Tenure||1 year to 10 years|
|Additional Interest Rate for Senior Citizens||0.50%|
|What Is the Maximum Interest Rate Offered by the Bank and for What Tenure?||For General citizens: 5.70% for a tenure that ranges between 3 years and 10 years. For Senior citizens: 6.20% for a tenure that ranges between 3 years and 10 years.|
|Loan Against Deposit||Up to 90% of the RD balance|
|TDS on RD||Applicable|
SBI RD Calculator
Most people opt for recurring deposits to earn something extra on their savings. The maturity amount on your RD depends on various factors such as the deposit amount, the rate of interest, tenure of the RD, TDS, and other such factors. You can use the SBI RD calculator to calculate the amount which you will get at the time of maturity for investing in an RD account
Types of RD Accounts offered by SBI
SBI offers three types of recurring deposits:
- Regular Recurring Deposit
- SBI Holiday Savings Account (Cox & Kings)
- SBI Flexi Deposit
- Regular Recurring Deposit: This is the basic and preferred recurring deposit account offered by the bank. You can open it with a minimum monthly deposit of Rs.100. The period of deposit can range between 1 year and 10 years.
- SBI Holiday Savings Account (Cox & Kings): This is a unique savings plan offered by the bank in association with Cox and Kings specifically for people wishing to save in order to travel. The scheme lets you save a certain amount in the form of a RD to avail a vacation package.
- SBI Flexi Deposit Scheme: Under this scheme, you can change the deposit amount every month instead of keeping it fixed. You need to deposit at least Rs.5,000 per year and you cannot put in more than Rs.50,000 annually. Deposits can be made for a period that ranges between 5 and 7 years.
How to Open an RD Account in SBI
You can open a recurring deposit account with SBI in two ways:
- By visiting the branch
- Through Netbanking
If you are an existing SBI account holder, use your netbanking username and password to log in to your online account and open an e-RD right away. If you are not an SBI account holder, you will have to open an account first. After your account is active, you can log in to netbanking and open an e-RD.
Premature Withdrawal Rules
State Bank of India allows you to withdraw your RD money prematurely. If you withdraw the money before it matures, there will be a nominal penalty. SBI does not allow partial withdrawals of recurring deposits.
SBI Recurring Deposit: Is It the Best Way to Save?
Any kind of savings is good. Recurring deposits have their own advantages. As the funds get debited from your savings account automatically every month on a given date, you will be saving without spending all you have. If your motive is to save every month, you can choose to open an RD.
FAQs on SBI RD Interest Rates
- Can an SBI recurring deposit account be opened through net banking?
Yes, a SBI recurring deposit account can be opened via net banking.
- Can the account holder of an SBI RD be different from the person from whose account the money is debited?
The account holder in the recurring deposit account will be the same as the one from whose account money is being debited. If you want the RD to be opened in someone else’s name, then you’ll have to visit a branch and contact the staff.
- Using what accounts can a State Bank of India RD account be opened?
You can use any savings or current account that is valid, and not in a dormant/stopped/locked state.
- Can I move the maturity amount of an RD to any account I want?
No. The maturity amount of an RD account can only be moved to the account from which it was originally funded.
- Can I withdraw the accrued interest money from SBI RD without withdrawing the principal?
No. You can either withdraw the full amount – interest and principal – or convert the full amount to a special term deposit scheme. These are the two maturity instructions you can leave with the bank at the time of opening an RD account.
- Will I get any interest payment if I withdraw the money in my SBI RD before maturity date?
You may receive some amount as interest, but that depends on how early into the tenure you make the withdrawal. You will not receive the amount promised at maturity, but you’ll get a pro-rated interest payment.
- Will my RD interest rate change each time the bank revises the rate?
No. Once you open an account and the interest rate is fixed, it will not be subject to change.
RD Interest Rate Pages
- United Bank RD Interest Rates
- Uco Bank RD Interest Rates
- Allahabad Bank RD Interest Rates
- Central Bank RD Interest Rates
- Federal Bank RD Interest Rates
- Indian Bank RD Interest Rates
- Andhra Bank RD Interest Rates
- Kotak Mahindra RD Interest Rates
- Syndicate Bank RD Interest Rates
- IOB RD Interest Rates
- City Union Bank RD Interest Rates
- Citybank RD Interest Rates
- Indusind Bank RD Interest Rates
- Corporation Bank RD Interest Rates
- BOM RD Interest Rates
RD Other Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes