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SBI Recurring Deposit Rate

A Recurring Deposit (RD) instils the habit of setting aside a small part of your earning every month. Proper planning of a recurring deposit helps an individual to save the money for some expected lumpsum expenditures in the future.

Recurring deposit has an advantage over fixed deposit since it allows for a regular monthly deposit as opposed to a lump sum deposit in case of a fixed deposit.

State Bank of India Recurring Deposit Schemes

Sbi Recurring Deposit Rate

Being the most sought-after bank in India, State Bank of India (SBI), has numerous deposit schemes to encourage its customers to save their money while earning attractive interest rates. Their recurring deposit schemes are thoughtfully designed to give maximum benefit to the customers. Pre-mature withdrawal facility, nomination facility and passbook option for recurring deposits allow the customers to carefully plan their monthly deposit.

Benefits of State Bank of India Recurring Deposit account

  • Monthly instalments starting from just Rs.100
  • Option to choose a tenure of 12 months to 10 years
  • Option to convert the maturity amount to fixed deposit
  • Convenience of opening a recurring deposit account online or in the branch

Types of Recurring Deposit Accounts in SBI

SBI Recurring Deposit Rates

SBI Regular Recurring Deposit Account

  • A simple recurring deposit account that is suitable for all customers
  • Monthly instalment starts from Rs.100 and can be increased in multiples of 10. There is no limit on the maximum amount
  • It has a minimum tenure of 12 months and can be extended up to 10 years
  • Overdraft/loan facility can be availed on up to 90% of the latest balance amount in the account
  • Premature withdrawal is allowed upon payment of a nominal penalty
  • Nomination facility can be availed
  • Passbook issued for all account holders
  • Maturity instructions can be set at the time of opening the account

SBI Flexi Deposit Scheme

  • As the name suggests, a flexible recurring deposit scheme that allows you to deposit varying amounts every month instead of a fixed monthly instalment
  • Any number of deposits allowed every month
  • Tenure ranging from 5 years to 7 years
  • Minimum deposit of Rs.5000 and maximum of Rs.50,000 in a financial year
  • Overdraft/loan facility can be availed as per term deposit conditions
  • Premature withdrawal is allowed upon payment of a nominal penalty
  • Nomination facility can be availed
  • Passbook issued for all account holders

SBI Holiday Savings Account

  • A recurring deposit scheme specially developed to help vacation seekers in affiliation with Thomas Cook
  • Maturity amount decided based on the vacation package chosen by the customer on Thomas Cook website
  • The cost of the vacation package is divided into 13 instalments. An e-recurring deposit is opened with SBI for which the customer pays 12 monthly instalments at the prevailing interest rates. The remaining amount for the 13th instalment is contributed by Thomas Cook after the maturity amount is considered.

Recurring Deposit Interest Rates

Recurring deposit interest rates are the same as fixed deposit rates. They are calculated on a quarterly basis. The latest interest rates announced by SBI for recurring deposits below Rs.1Cr are

TenureInterest Rate (per annum)
1 year to less than 2 year6.80%
2 years to less than 3 years6.80%
3 years to less than 5 years6.80%
5 years and up to 10 years6.85%

Senior citizens are paid a slightly higher interest rate for their recurring deposit accounts

TenureInterest Rate (per annum)
1 year to less than 2 year7.30%
2 years to less than 3 years7.30%
3 years to less than 5 years7.30%
5 years and up to 10 years7.35%

Important terms & conditions regarding SBI Recurring Deposits

  • The interest earned on recurring deposits is taxable
  • SBI charges penalty for non-payment of monthly instalment - for a/c of period 5 years and less, Rs 1.50 per Rs. 100/- per month is charged. For a/c of period above 5 years- Rs 2.00 per Rs. 100/- per month is charged

Who can open a Recurring Deposit account?

A recurring deposit account is a very basic form of deposit account offered by banks to all its customers. However, SBI required that one open a savings bank account before opening a recurring deposit account. Individuals eligible to open a recurring deposit account with SBI include

  • All Indian residents
  • Minors, with guardians as the operating member on the account
  • Members of Hindu Undivided Families (HUF)
  • Associations, Clubs, Societies etc;

State Bank of India Recurring Deposit : FAQs

1. What is the minimum amount to open a recurring deposit account?

The minimum amount to open a regular recurring deposit account is Rs. 100 per month. To open an SBI Flexi Deposit scheme, the minimum amount is Rs.500 per instance and Rs 5000 per financial year.

2. What is the minimum and maximum tenure for SBI Flexi Deposit Scheme?

The minimum deposit tenure is 5 years and the maximum is 7 years

3. How can I open a recurring deposit with SBI?

If you are an existing customer of State Bank of India, you can open a recurring deposit from the convenience of your home using internet banking. If you are not an existing customer, then you are required to open a savings bank account and then a recurring deposit account. You can avail facilities like nomination, passbook and even set maturity instructions at the time of opening a recurring deposit account.

4. What are the documents required to open a recurring deposit account?

If you are an existing customer of SBI, you can open a recurring deposit account linking it to your savings bank account. If you are not an existing customer, then you are required to open a savings bank account first. The documents required are

  • Filled-in application form. All new accounts require to be opened with Aadhaar number and PAN number/Form 60
  • Passport size photographs
  • Identity proof– Aadhaar card, passport, voter’s Id, driving license, job card issued by NREGA
  • Address proof - Aadhaar card, passport, voter’s Id, utility bills not more than 2 months old, property/municipal tax receipt, pension order issued to retired employees of government employees
  • Any other KYC documents as required by the bank

5. Is the interest earned on my recurring deposit taxable?

Yes, SBI applies TDS on the interest earned on a recurring deposit account.

6. Can I prematurely withdraw my recurring deposit?

Yes, a recurring deposit can be closed prematurely. The interest earned shall be adjusted for any penalty applicable as per terms & conditions prevailing on the date of premature withdrawal.

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