SBI Recurring Deposit 2025
SBI allows you to take a loan of up to 90% of your RD amount, which can be useful in times of financial emergencies without needing to break your deposit.
State Bank of India, the country's largest lender lets you to open recurring deposit (RD) accounts. The RDs can be opened by visiting a branch of the bank or by using the internet banking facility.
The rate of interest offered on the RDs is 6.80% p.a. for general citizens across all tenures for a tenure of 12 months .Senior citizens are offered 7.30% p.a.
The minimum tenure for which an RD account can be opened with State Bank of India is 12 months.
Interest Rates on SBI Recurring Deposit (RD)
The rate of interest offered on recurring deposits by State Bank of India is as per term deposit rates. Listed below are the tenures and the best rd rates as of 27 December 2023.
Tenure | General Citizens Interest Rates | Senior Citizens Interest Rates |
1 year to less than 2 years | 6.80% | 7.30% |
2 years to less than 3 years | 7.00% | 7.50% |
3 years to less than 5 years | 6.75% | 7.25% |
5 years to up to 10 years | 6.50% | 7.50% |
Note: The interest rates mentioned above are for deposits below Rs.2 crore.
Features of SBI Recurring Deposit (RD)
The following are the significant features of SBI recurring deposit scheme:
- Minimum deposit amount for SBI RD account is Rs.100
- The deposit amount should be in multiples of Rs.10 in case of higher amount
- SBI RD account offers nomination facility
- Tenure of deposit scheme ranges from one year to ten years
- Senior citizens are offered with additional rate of interest of 0.50% over regular interest rate
- SBI RD is subjected to existing income tax rules and TDS will be deducted as per applicable rates
- Loan can be taken against RD deposit of an amount up to 90% of the total RD balance
- Penalty of Rs.1.50 to Rs.2for every Rs.100 per month will be levied depending on the RD tenure
Types of Recurring Deposits offered by State Bank of India
The lender offers two types of recurring deposits
- Regular recurring deposits - Basic RD schemes offered by SBI that can be opened with a minimum monthly deposit of Rs. 100 or more for a tenure ranging from one year to ten years.
- SBI Holiday savings account - This scheme is specially for those who prefer to travel and can avail themselves of travel packages through Thomas Cook.
- The amount under the Thomas Cook Holiday savings account package can be split into 13 EMIs which can be paid into 12 EMIs by depositing every month into SBI Holiday savings account and 13th EMI will be by Thomas Cook after adding applicable interest rate.
- SBI Flexi Deposit Scheme - This scheme allows accountholders to deposit any amount instead of paying a fixed amount. The scheme tenure ranges between five to seven years and at least Rs.5000 deposited annually which should not exceed Rs.50,000.
Eligibility Criteria to Open an SBI RD Account
The following are the eligibility criteria required to open SBI RD account:
- Members of Hindu Undivided Family
- Indian residents
- Non-Residential Indians, provided they apply for Non-Resident Ordinary (NRO) or Non-Resident External (NRE) account
- Minors can open SBI RD account, provided legal guardians monitors their finances.
Documents Required to Open an SBI RD account
The following are the essential documents required to open SBI RD account:
- Residential proof:
Here is the list of address proof:
- Bank account statements with a cheque
- Electricity bill or telephone bill
- Post Office-issued any certificate or ID card
- Passport
- Identification proof:
Here is the list of address proof:
- Government ID card
- A senior citizen ID card
- PAN card
- Ration card
- Aadhar or voter ID card
How to Open an RD Account in SBI?
Here are the ways to open SBI RD account:
- Offline -To apply for an SBI RD account offline, visit the nearest SBI branch. Fill in the RD application form and submit all the required documents along with it. Make the first deposit through cash or cheque to activate your RD account.
Here are the steps to open SBI RD account online:
- Log into the internet banking account, if you are an existing SBI accountholder
- After entering user ID and password, click on ‘e-RD' option to open an RD account
- Open an account first if not an accountholder
- Register for internet banking to open RD account online
How to Calculate RD Interest Rates in SBI?
SBI RD interest rates can be calculated using the below formula:
A = P(1+r/n) ^ nt
A: Maturity amount
P: Principal amount
r: rate of interest
n: number of times interest will be compounded
t: RD deposit tenure
SBI RD Premature Withdrawal
Premature withdrawal of RD amount is permitted by SBI after deducting a nominal penalty charge. But SBI does not allow partial withdrawals of RD amount.
Here are the steps to close or premature withdrawal of RD account:
- Visit the official website of the State Bank of India
- Enter your user ID and password to log into your internet banking account
- under ‘Fixed Deposit’, click on ‘e-TDR/e-STDR (FD)’
- Under the ‘kind of deposit account’ drop-down menu, select e-RD (Recurring Deposit)
- Click ‘Proceed’
- A new page will be displayed showing various services offered under the RD scheme
- Click ‘Close A/c’
- Click on ‘Proceed’
- The page will display all the information related to your RD
- In the ‘Remarks’ field’, type ‘Close RD account’ and click ‘Proceed’
- Before clicking on ‘Confirm’ button, enter the ‘High-Security Password’
A confirmation message will be received by you on your registered mobile number email address regarding closure of your SBI RD account.
FAQs on SBI Recurring Deposit
- What are the minimum and maximum periods for an RD in SBI?
The minimum period of deposit is 12 months and the maximum is 120 months.
- What is the minimum and maximum amount to open a recurring deposit?
The minimum amount for which an RD can be opened with SBI is Rs.100. There isn't any cap on the maximum amount. Starting from Rs.100 and in multiples of Rs.10).
- How can I open a recurring deposit account with State Bank of India?
You can open an RD account with SBI by visiting any branch of the bank. It can also be done through the internet banking facility.
- Is TDS applicable on Recurring Deposits?
Yes, TDS is applicable on recurring deposits.
- Does SBI provide loan against the deposit in the RD account?
Yes, the bank offers loan against the deposit in the RD account. Loan or overdraft is provided up to 90% of the balance in the RD account.
- Do senior citizens get any extra benefit on recurring deposits?
Yes, the bank offers an additional rate of interest to senior citizens. Individuals above the age of 60 years are provided 0.50% more than the general public.
- What are the penalty charges for non-deposit of monthly instalments?
SBI charges a penalty for non-deposit of monthly instalments. The charges are as follows:
- For account of period 5 years and less - Rs.1.50 for every Rs.100 per month.
- For account of period above 5 years - Rs.2 for every Rs.100 per month.
- Is premature withdrawal allowed?
Yes, premature withdrawal from the RD account is allowed by SBI.
- Does the bank send reminders if I fail to pay an instalment in a calendar month?
No, the bank doesn't send any reminders if you fail to pay an instalment in a month. The onus is on you to make timely payments.
- Can SBI close my RD account on its own if I don't pay the monthly instalments?
Yes, the bank has the right to close the RD account prematurely in case you don't pay the instalments for six consecutive months. The balance in your account will be transferred to you.
- Can I transfer the maturity amount of an RD to any account?
No, you cannot transfer your maturity amount of the RD scheme to any account. It will be credited only to the account from where the RD was funded.
- Can I withdraw just the interest amount and not the principal?
No, you cannot withdraw only the interest amount from your RD balance. You will have to either withdraw the total amount including both the interest or principal or convert the total amount into a special term deposit scheme.
- Does the RD interest rate change every time the bank revises the rate?
No, the interest rate will be the same throughout the tenure of the RD scheme even if the bank revises its rates.
- Does the bank provide any interest in the case of premature withdrawal?
Yes, you may receive a prorated interest instead of the maturity interest, which depends on the time of withdrawal.
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