Overview of State Bank of India
State Bank of India is a government-owned banking and financial services company, headquartered in Mumbai, Maharashtra. It has around 17,000 branches, including 190 foreign offices, making it the largest banking and financial services company in India, in terms of assets. Bank of Madras, Bank of Calcutta and Bank of Bombay, merged to form the Imperial Bank of India, which ultimately became the State Bank of India. In 1955, Government of India owned the Imperial Bank of India, with Reserve Bank of India holding 60% stake, and was renamed as State Bank of India. The government took over the stake held by the Reserve Bank of India in 2008.
Recurring Deposit from State Bank of India
The name and branch of a newly generated Recurring Deposit account will be same as given in the debit account, from which RD account is funded. The maturity amount is fixed based on factors such as: the instalments, tenure and type of account that the customer has chosen. The maturity value of RD is rounded off to the nearest rupee and paid after 30 days or when the stipulated deposit period expires. A savings, current, or OD account can be debited to open a RD account. The account selected for debiting should be a valid transactional account with the facility of internet banking activated. Customers can also open a RD account online with SBI through e-RD feature in SBI internet banking.
Features of State Bank of India Recurring Deposit
- Minimum monthly deposits of Rs.100 with no maximum limit. Additional deposits should be made in multiples of Rs.10.
- Minimum period of deposit is 12 months and maximum is 120 months.
- Loan / Overdraft up to 90% available against the balance in RD account.
- TDS is not applicable.
- Premature withdrawal is allowed with a penalty of 0.5% below the interest rate applicable for the period the deposit has remained with the bank.
- Loan or Overdraft facility is available with the balance in RD account as collateral.
- Penalty charges for not depositing monthly instalments on time are:
- For a period 5 years and less - Rs. 1.50 per Rs. 100/- per month
- For a period above 5 years - Rs. 2.00 per Rs. 100/- per month
- Passbooks are provided.
- Nomination facility is available.
Interest rates offered on State Bank of India’s Recurring Deposit
The interest rates vary from time to time and is applicable as per the Bank’s TDR / STDR for the deposit period. SBI web portal offers updated information on interest rates. The interest rate payable to SBI Staff and SBI pensioners is 1.00% above the applicable rates. The rate applicable to all Senior Citizens and SBI Pensioners is 0.50% above the rate payable to regular customers. Depositors can avail up to 6.25% as interest on RD.
Nomination for RD
Nomination facility is available. While opening a RD account, the depositor will be provided with an option to retain the nominee(s) as stated in the debit account from which the RD is funded. The customer will have to visit his/her branch if he/she intends to add a new nominee.
SBI Recurring Deposit FAQ’s
How to open a Recurring Deposit account in State Bank of India?
A customer can open an RD account with SBI through any branch of the bank. If you have internet banking user-name and password, and at least one transaction mapped to the user-name then you can open a Recurring Deposit (RD) account through internet banking.
What is the Minimum & Maximum amount to open a Recurring Deposit in State Bank of India?
The minimum amount of monthly installment is Rs.100. The installment amount and number of installments cannot be changed after opening the account.
While opening the RD account, whose name will appear on the account?
The RD account will be opened under the name of the debit account holder who is funding the RD account. If you have opened the RD account through your savings account, the RD account will be under your name.
What are the Minimum or Maximum period for an RD in State Bank of India?
The period of deposit is a minimum of 12 months and a maximum of 120 months.
Is TDS (Tax Deductible at Source) applicable on Recurring Deposits?
No, TDS is not applicable.
Does the RD account of State Bank of India provide loan against the deposit?
Loan up to 90% of the deposit is provided to the depositor with the balance in the Recurring Deposit account treated as security, at an interest of 0.5% per annum ( above the interest rate applicable for the deposit).
Do Senior citizens get any extra benefit on Recurring Deposits?
Yes, additional rate of interest for Senior Citizens is provided. The age of the customer, in this case, should not be below 60 years on the date of opening the RD account. The minimum tenure and minimum amount applicable for additional rate of interest for senior citizen will be as per Bank's policy.
How is the penalty on premature closure of the Recurring calculated?
Penalty will be applied on the interest rate paid-out to the RD in case of premature withdrawal of RD. It will be a 1.00% deduction on the rate applicable for the period the deposit has remained with the bank.
What is the penalty for default in installment payment?
If a depositor fails to pay the installment on the due date for three successive months, a service charge of Rs 10/- is applicable. Penalty in case of delay in payment of installment of RD held for a period of 5 years or less shall be Rs 1.50 for every Rs 100 per month, and Rs 2.00 for every Rs. 100 per month for an account which is held for more than 5 years
Is there a way to calculate maturity amount before opening an RD account online?
The maturity amount is calculated based on various factors such as the installments, tenure, and type of account. The maturity value of an RD account is rounded off to the nearest rupee and paid on the maturity or expiry of the period. You will be able to calculate the maturity amount, maturity date and rate of interest without opening an RD account. You will need to use the ‘Maturity Value Calculator’ available on the ‘Related Links’ section.
Know the Current Recurring Deposit Rates:
- SBI Recurring Deposit Rates
- SBI Recurring Deposit Interest Rate Comparison with Other Banks and Institutions