SBI recurring deposit comes with excellent features and benefits. With term of RD ranging from 1 year to 10 years and attractive rate of interest ranging between 6.00% p.a to 6.75% p.a for regular customers and an additional interest rate hike of 0.50% for senior citizens, it is one of the most sought-after RDs in India.
|RD Tenure||General Rates||Rates For Senior Citizens|
|1 Year||6.25 % p.a||6.75 % p.a|
|Above 1 Year to 455 days||6.25 % p.a||6.75 % p.a|
|456 days to less than 2 years||6.25 % p.a||6.75 % p.a|
|2 years to less than 3 years||6.00 % p.a||6.50 % p.a|
|3 years to less than 5 years||6.00 % p.a||6.50 % p.a|
|5 years to 10 years||6.00 % p.a||6.50 % p.a|
Key Features of SBI Recurring Deposits
- Monthly RD deposits can be as low as Rs.100 and thereafter in multiples of Rs.10 which makes savings easy for even those who earn less.
- There is no maximum limit on the monthly RD deposits amount.
- Another excellent feature of SBI RD is that loan or overdraft facility is available against the RD balance maintained by the customer.
- Tax Deducted At Source(TDS) is applicable on interest earned through SBI recurring deposit.
- Premature withdrawals are allowed as per the bank’s rules.
- Account Holders with an RD account with SBI will be asked to assign a nominee.
- Passbooks will be issued for SBI RD holders.
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.
Other RD Schemes offered By SBI:
Apart from the above recurring deposits, SBI also offers “SBI Flexi Deposit Scheme” which is very similar to the recurring deposit.
- Under the SBI Fixed 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.
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 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 Acount
Can I open a recurring deposit online through my netbanking?
Yes. If you are an existing SBI account holder, you can use your internet banking credentials to access your netbanking and open an e-RD account. However, please note that you should atleast have one transaction that is mapped with your internet banking username to open an e-RD.
What is the minimum and the maximum tenure for RD accounts opened online?
If you are opening an e-RD, the minimum tenure is 12 months and the maximum can go up to 120 months.
How is the maturity amount on my RD account calculated?
There many factors like the installment amount, tenure of the RD, interest rate, and type of account that decides the maturity amount on your RD. However, after calculating, the maturity amount is rounded off to the nearest Rupee and will become payable maturity date.
What type of account should I have to open an RD account?
You can open an RD account with savings account, current account, or OD account. The only rule is that the account should not be in stopped, locked, or dormant status while you are opening an RD account.
Can I open a recurring deposit account on a different name that is not as same as the name of the debiting account from which the RD deposit is taken?
No. You will not be allowed to pen a recurring deposit account on a different name that is not as same as the name of the debiting account from which the RD deposit is taken. You may visit a SBI branch to get this done.
Will I be allowed to add nominees to my RD account?
Yes. While opening an RD account online, you will be asked to provide your nominee details.
Is there any timings that I need to follow when I open an Rd account online?
Yes. If you open an RD account online between 8 AM IST to 8 PM IST, the request will be honoured on the same day. Any requests out of these hours will be pushed to the next working day.
I want to cancel the standing instructions that I set on my e-Rd. How do I do it?
Please login to your netbanking and navigate to the “Request” option. Under this option, please click on “Standing Instruction Link”. You will be allowed to view or cancel your standing instructions under this link.
Is it mandatory for me to setup standing instruction on my RD?
To open an e-Rd account, you will be asked to make a payment online. However, once the account is open, you can pay your RD installments at a branch or online instead of setting up standing instructions.
Can I close my RD account online?
If you have opened an e-RD online, you will have an option called “Close Account” under e-RD when you login to your netbanking. However, RDs that are not created online cannot be closed using this option.
More you need to know about Recurring Deposit
- RD Calculator
- SBI Recurring Deposit
- Recurring Deposit
- Compare Recurring Deposit Interest Rates of SBI with Other Banks and Institutions
SBI RD Schemes
Read More Articles On RD
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- Recurring Deposit Interest Rates of All Banks
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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.
18th 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.
14th 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.
19th 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.
1st 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
3rd 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.
28th 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.
24th 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.
3rd 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.
29th 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.
13th September, 2016