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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 ratesbest rd rates as of 17 April 2020

Tenure Interest rate p.a. (General citizens) Interest rate p.a. (Senior citizens)
12 months to less than 24 months 5.70% 6.20%
24 months to less than 36 months 5.70% 6.20%
36 months to less than 60 days 5.70% 6.20%
60 months to less than 120 months 5.70% 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 5.70% 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.

Features of Recurring Deposit offered by State Bank of India

  • 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.

News About SBI Recurring Deposit

  • SBI has set a trend of reducing interest rates and more banks are following it.

    Most Of The Banks In India Are Reducing Their Interest Rates On Savings Bank Deposit

    The State Bank of India has been a trend setter to almost all the banks in India. One cannot disagree that many banks in India reduced their interest rates when SBI reduced and increased it when the national bank did so.

    Usually, when the lending rates reduces, the banks hike reduces their rates on deposits too. This is the current scenario in the banking industry in India right now. Recently, when State Bank of India reduced their interest rate ny 50 bps to 3.5% p.a from 4% on savings account deposits, many banks followed the trend and cut their rates.

    Going forward, make sure you check the revised rate of interest on deposits including your recurring deposit account.

    18 August 2017

  • State Bank Of India Cut Interest Rate On Savings Account Deposits Up To rs.1 Crore By 50 BPS

    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.

    14 August 2017

  • Term Deposit Rates Slashed By State Bank of India

    State Bank of India reduces the term deposit rates by 50 basis points. This has been done so that high cost deposits can be warded off for various maturities. Bank of Baroda also reduced the deposit rates by 10 to 25 basis points. Canara Bank on the other hand reduced the 1 year FD rate to 6.9%.

    2 May 2017

  • SBI To Find Customers Who Do Not Maintain Minimum Balance

    The State Bank of India (SBI), the country’s largest bank, will begin charging customers who do not maintain the minimum balance requirement in their accounts. The charges will be levied with effect April 1st, 2017. The charge will be levied based on the difference between the required balance and the shortfall amount.

    The minimum balance requirement for savings bank accounts is Rs.5,000 for metropolitan areas, while it is Rs.3,000 for urban areas. Customers in semi-urban areas have to maintain a balance of Rs.2,000 while it is Rs.1,000 for rural areas.

    For metropolitan areas with a shortfall greater than 75% of the requirement, a fee of Rs.100 plus service tax will be levied, while it will be Rs.60 plus service tax for a shortfall of between 50-75% of the requirement. Shortfalls of less than 50% will be charged Rs.40 plus service tax.

    n urban areas, a shortfall of more than 75% will incur a fee of Rs.80 plus service tax.

    The bank had relaxed the minimum balance requirement a few years ago in an attempt to lure new customers. However, with the bank merging with 5 of its subsidiaries, it will now have close to 50 crore customers and stands to make a significant profit if even a fraction of its customers default on the minimum balance requirements.

    10 March 2017

  • SBI Cuts Recruitment on Account of Merger

    State Bank of India’s (SBI) merger with its associate banks is expected to bring about a 20% drop in recruitment, as the merger might result in a surplus of employees. Associate banks have already stopped recruitment in light of the merger. The bank will still be hiring as there is a requirement for new blood, but not as aggressively as they did earlier. SBI usually hires approximately 13,000 new recruits every year based on the attrition rate, however, the bank has reduced this over the past two years, mainly in clerical staff. The bank did not recruit any clerical staff last year. This year SBI will be hiring around 17,000 clerical staff which includes 3,008 agri staff, which the bank is recruiting after a gap of several years as they have a larger market for agricultural lending now. The associate banks involved in the merger are, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Patiala, State Bank of Hyderabad and State Bank of Travancore.

    26 October 2016

  • CDM Limit Increased By SBI

    The cash deposit limit of CDMs (Cash Deposit Machines) has been increased to Rs.2,00,000 by the State Bank of India. This increase has made it easy for the customers to deposit cash into their recurring deposit (RD) accounts, loan accounts, PPF accounts, Current and Savings accounts. This step will also help customers save time as they do not have to stand in long queues at any branch of the bank.

    17 September 2016

  • State Bank of India to Merge Five Subsidiaries to Rank Higher on Global Banking Stage

    The State Bank of India is expected to undertake a proposed merger under which five of its associate banks will take a giant step towards banking consolidation with Bharatiya Mahila Bank. SBI’s acquisition of its five subsidiaries along with the niche provider of banking services for female customers over the past three years is expected to push the merged institution much higher up the standings on the international banking stage. The economy as well as the lender are expected to benefit from the operation, and the enhanced balanced sheet size is anticipated to allow the bank to attain better pricing on both domestic deposits as well as internationally sourced funds, thereby helping it reduce lending rates while increasing profitability.

    5 August 2016

  • SBI And IOC to Tie Up to Benefit Farmers

    The State Bank of India (SBI) and the Indian Oil Corporation (IOC) have linked to implement a scheme to benefit farmers. The bank will be implementing the scheme through IOC’s Kisan Seva Kendras.

    According to a statement released by the bank, banking services such as recurring deposit, savings account, social security programmes and Aadhaar seeding will be available through kiosks set up in the Kisan Seva Kendras.

    This will benefit a large number of farmers who do not have access to full-fledged banking services close to their farms.

    The IOC’s over 65,000 Kisan Seva Kendras are located across the country and provides the perfect platform for SBI to extend such facilities to such a large customer base.

    One of the services they will be providing are debit cards, which will eliminate the need to carry large amounts of cash for the purchase of various agricultural products.

    25 July 2016

  • Thomas Cook and SBI Launch ‘Holiday Savings Account’

    One of the top tour operators has partnered with State Bank of India to launch an account geared towards holiday savings. Called the ‘Holiday Savings Account’, SBI account holders can choose a holiday package from Thomas Cook and open a Recurring Deposit (RD) with the bank as a way to pay for it.

    Account holders will also earn interest on their savings, making it an added incentive. They can also opt out of the holiday if they wish to. The RD will be for a 12 month period.

    The advantages of the HAS are manifold, the main one being customers will be paying for their selected holiday at the current prevailing rate. Since holiday packages generally get more expensive closer to the holiday season, HAS holders will be saving on the price difference.

    They will also receive a top-up from Thomas Cook for the 13th month, coupled with the interest and a zero exit clause.

    Those wishing to avail of this scheme have to log onto the Thomas Cook website and choose their package; they have to then log on to the SBI portal and open a recurring deposit account, depending on the holiday cost. They will have to make 12 monthly payments towards the holiday cost.

    The packages offered are inclusive of all taxes and charges, and HAS account holders can benefit from cheaper rates on their dream holiday through this scheme.

    10 February 2016

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