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SBI Recurring 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 5.70% p.a. for general citizens across all tenures. Senior citizens are offered 6.20% p.a. The minimum tenure for which an RD account can be opened with State Bank of India is 12 months.

SBI RD Interest Rates

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 May 2020

Tenure Interest rate p.a. (General citizens) Interest rate p.a. (Senior citizens)
12 months to less than 24 months 5.10% 5.60%
24 months to less than 36 months 5.10% 5.60%
36 months to less than 60 months 5.30% 5.80%
60 months to less than 120 months 5.40% 6.20%

*The interest rates mentioned above are for deposits below Rs.2 crore.

The highest interest offered to general citizens on an RD tenure by SBI is 5.40% p.a. This is offered on a tenure that ranges between 12 months and 120 months. Senior citizens are offered additional interest of 0.50% on all the tenures except for 60 months to less than 120 months wherein it is 0.80% more than that of general citizens.

  • Deposits can be as low as Rs.100 for every month.
  • There is no limit on the maximum deposit.
  • An RD account can be opened for a period ranging between 12 months and 120 months.
  • Loan/overdraft facility available (up to 90% of the deposited amount available)
  • Universal passbook is issued
  • Nomination facility available.

Types of Recurring Deposits offered by State Bank of India

The lender offers two types of recurring deposits. They are -

  • Regular recurring deposits
  • SBI Holiday savings account

SBI Recurring Deposit FAQ’s

  1. 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.

  2. 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).

  3. 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.

  4. Is TDS applicable on Recurring Deposits?

    Yes, TDS is applicable on recurring deposits.

  5. 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.

  6. 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.

  7. 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.
  8. Is premature withdrawal allowed?

    Yes, premature withdrawal from the RD account is allowed by SBI.

  9. 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.

  10. Can SBI close my RD account on its own if I don’t the pay 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.

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