SBI Recurring Deposit is a convenient small-savings scheme to opt for if you’re just starting to save up. You can open a recurring deposit account with the State Bank of India for tenures ranging from 12 months (1 year) to 120 months (10 years). The interest rates range from 5.75% to 7.50% for regular account holders, while senior citizens get an additional 0.50% p.a.
SBI Recurring Deposit Interest Rates
|Tenure||Deposit amount||Regular Interest Rates (p.a.)||Senior Citizen Interest Rates (p.a.)|
|1 year to < 2 years||Less than Rs.2 crore||7%||7.5%|
|Rs.2 crore to Rs.10 crore||6.70%||7.20%|
|More than Rs.10 crore||6.70%||7.20%|
|2 years to < 3 years||Less than Rs.2 crore||6.75%||7.25%|
|Rs.2 crore to Rs.10 crore||6.75%||7.25%|
|More than Rs.10 crore||6.75%||7.25%|
|3 years to < 5 years||Less than Rs.2 crore||6.70%||7.20%|
|Rs.2 crore to Rs.10 crore||6.80%||7.30%|
|More than Rs.10 crore||6.80%||7.30%|
|5 years to 10 years||Less than Rs.2 crore||6.60%||7.10%|
|Rs.2 crore to Rs.10 crore||6.85%||7.35%|
|More than Rs.10 crore||6.85%||7.35%|
*The above interest rates are effective from 9 May 2019.
Tenure-Wise Interest Rate Analysis
Interest rates for SBI Recurring Deposit are the same as those for the bank’s fixed deposit plans. These rates change regularly – at least once every quarter.
The highest interest rate you will currently receive on an SBI RD is 7% p.a., available on the 1 year to less than 2 years tenure. Senior citizens will earn 7.5% p.a. for the same period. The lowest prevailing RD interest rate in SBI is 6.6% for the 5-10 year tenure.
Contrary to popular expectations, a higher deposit amount doesn’t always mean higher returns. For example, if you deposit less than Rs.2 crore for a 1-year tenure, then you’ll earn 7% p.a., but if your deposit is above Rs.2 crore then the rate of interest is just 6.7%. However, for tenures of 3 years or more, the rate does increase if the deposit amount is higher.
SBI RD Interest Rates for Senior Citizen
For senior citizens, State Bank of India’s interest rate is 0.50% higher than regular. So, whatever the rate is for a tenure, add 0.50% to it to get the rate that individuals above the age of 60 would get. For example, pensioners get 7.25% p.a. for a 2-3-year period, for which the regular rate is 6.75%.
Important Information About SBI Recurring Deposit Schemes
|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?||Regular rate: 7% for 1 year to less than 2 years Sr. citizens’ rate: 7.5% for 1 year to less than 2 years|
|Loan Against Deposit||Up to 90% of the RD balance|
|TDS on RD||Applicable|
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 such as the deposit amount, the rate of interest, tenure of the RD, TDS, and other such factors. There are many websites that offer recurring deposit calculators. You can use any one of these to calculate the interest you would earn on your recurring deposit.
Types of RD Accounts in SBI Portfolio
SBI offers three types of recurring deposits: the regular Recurring Deposit, the SBI Holiday Savings Account, and SBI Flexi Deposit Scheme.
- SBI 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 or more. The tenures are between 1 year and 10 years.
- SBI Holiday Savings Account: This is a savings scheme specifically for people wishing to save for a travel package through Thomas Cook. You can choose a Thomas Cook Holiday Savings Account package and the amount will be split into 13 EMIs. You can deposit that EMI amount every month in an SBI Holiday Savings Account for 12 months, and Thomas Cook will fund the 13th EMI after adding in the accrued interest rate.
- 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 5 to 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. However, recurring deposits are not ideal if your motive is to invest and increase your 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.
FAQs on SBI Recurring Deposit
- Can an SBI recurring deposit account be opened through net banking?
- Can the account holder of an SBI RD be different from the person from whose account the money is debited?
- Using what accounts can a State Bank of India RD account be opened?
- Can I move the maturity amount of an RD to any account I want?
- Can I withdraw the accrued interest money from SBI RD without withdrawing the principal?
- Will I get any interest payment if I withdraw the money in my SBI RD before maturity date?
- Will my RD interest rate change each time the bank revises the rate?
Yes, a SBI recurring deposit account can be opened via net banking.
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.
You can use any savings or current account that is valid, and not in a dormant/stopped/locked state.
No. The maturity amount of an RD account can only be moved to the account from which it was originally funded.
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.
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.
No. Once you open an account and the interest rate is fixed, it will not be subject to change.