State Bank of India or SBI offers attractive RD interest rates to its customers with a minimum deposit amount starting from just Rs. 100. SBI allows opening an RD account for a period of 7 days to 10 years depending on the financial goals of the customer. The SBI recurring deposit interest rates offered by the bank on deposit less than Rs. 2 crore is 4.50% and 6.25%. Senior citizens are offered with an additional interest of 0.50% on normal interest rates. Scroll down to know more about the interest offered by the bank.
SBI Recurring Deposit Interest Rates (Below Rs. 2 Crore)
Below given are the updated SBI RD rates as of 30th Dec 2019:
|Tenure||Interest Rates for General Citizens (p.a.)||Interest Rates (p.a.) for Senior Citizens|
|7 to 45 days||4.50%||5.00%|
|46 to 179 days||5.50%||6.00%|
|180 to 210 days||5.80%||6.30%|
|211 days or less than 1 year||5.80%||6.30%|
|1 to 2 years||6.50%||7.00%|
|2 to 3 years||6.25%||6.75%|
|3 to 5 years||6.25%||6.75%|
|5 to 10 years||6.25%||6.75%|
State Bank of India RD Interest Rates (For Deposits above Rs. 2 Crore)
The interest rates offered by the bank to all the general and senior citizen for deposits above Rs. 2 crores effective as of 10th September 2019 are as follows:
|Tenure||Interest Rates for General Citizens (p.a.)||Interest Rates p.a. for Senior Citizens|
|7 to 45 days||4.30%||4.80%|
|46 to 179 days||5.30%||5.80%|
|180 to 210 days||5.70%||6.20%|
|211 days or less than 1 year||5.70%||6.20%|
|1 to 2 years||6.30%||6.80%|
|2 to 3 years||6.00%||6.50%|
|3 to 5 years||5.75%||6.25%|
|5 to 10 years||5.75%||6.25%|
SBI RD Interest Rates – Special Features
- The minimum deposit required to open an SBI RD account is Rs. 100 (deposit in multiples of Rs. 10 in case of a higher amount)
- The tenure of an RD account in SBI ranges from 1 year to 10 years
- Senior citizens can avail an extra interest rate of 0.50% over the regular rate of interest offered to general citizens
- Nomination facility is available so that you can nominate someone to collect your maturity amount
- SBI offers the facility to take loan against deposited amount; one can avail 90% of the RD balance as the loan amount
- TDS deduction on RD is applicable and subject to the existing income tax rules at the time of opening the account
- In case of late payments, a penalty is levied by the bank which is:
- Tenures ranging up to 5 years or less – Rs. 1.50 for Rs. 100 per month
- Tenures more than 5 years – Rs. 2 for Rs. 100 per month
Types of SBI RD Accounts
As of now, SBI offers three types of recurring deposits, viz. The regular recurring deposit, the SBI holiday savings account, and the SBI Flexi Deposit Scheme. Let’s have a quick look into each one of them:
SBI Regular Recurring Deposit: This one is the basic and the most preferred recurring deposit account offered by the bank. It can be opened with a minimum monthly deposit of Rs. 100 or more. The tenures can be anything between 1 year to 10 years.
SBI Holiday Savings Account: A savings scheme specially designed for people who love to travel. Under this scheme, one can save on a travel package through Thomas Cook. You can choose a Thomas Cook Holiday savings account package through Thomas Cook while traveling and the amount will be split into 13 EMIs. The EMI amount can be deposited every month in the SBI Holiday Savings Account for 12 months, and Thomas Cook will provide the 13th EMI after adding in the applicable interest rate.
SBI Flexi Deposit Scheme: As the name clearly suggests, under this scheme, you can change the deposit amount every month instead of paying the fixed amount. At least Rs. 5000 deposit is needed per year and it should not exceed Rs. 50,000 annually. The deposits can be made for 5 to 7 years.
SBI RD Calculator
The primary motive behind opening an SBI RD account is to get some surplus amount on savings. The maturity amount relies on several factors such as the deposit amount, interest rate, the RD tenure, TDS and other similar factors. The easiest way to calculate the interest on your recurring deposit is to use an SBI RD calculator which you can get over the internet easily.
SBI RD Premature Withdrawal Rules
SBI allows its customers to withdraw your RD money prematurely. If the money is withdrawn before maturity, there will be a nominal penalty. However, SBI doesn’t allow partial withdrawals of recurring deposit.
Savings in any form is good and recurring deposits are one of the most preferred risk-free deposit scheme opted by people. The main motive is to earn some extra income on your savings as the money automatically gets debited from your account, you will be saving a fixed amount of money every month. However, recurring deposits are not ideal for people who want their savings to grow manifold; in that case, the money can be invested in mutual funds or a Systematic Investment Plan. SBI offers flexible deposit options with schemes like the SBI Flexi Deposit Scheme and SBI holiday savings account with which one can easily save money even more easily.
SBI Recurrent Deposit Interest Rate – FAQs
How to Open an SBI RD Account?
- By visiting any SBI branch
- Through Netbanking
If you are already an SBI customer, all you need to do is log in to your account by using your net banking username and password and open an e-RD right away. If you don’t have an account in SBI, you need to get one first. Once your account is active, you can log in to net banking and open an e-RD.
What type of accounts are needed to open an SBI RD account?
Any savings or current account which is valid and in the active state can be used.
Can the maturity amount of an RD be moved to any account I want?
No, the maturity amount can only be moved to the account from which it was funded.
Does the RD interest rate changes every time the bank revises the rate?
No. The interest remains the same as in the time of opening an SBI RD account.
Can I withdraw just the interest amount and not the principal?
No. Either the full amount should be withdrawn, i.e. the interest + principal or convert the entire amount to a special term deposit scheme.
Does the bank provide any interest in the case of premature withdrawal?
Yes, you may receive some amount in the form of interest, but that depends on when you make the withdrawal. However, you will not get the maturity interest but a prorated interest rate.