SBI Recurring Deposit Interest Rates

SBI Recurring Deposit

SBI Recurring Deposit

A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount.

The major differentiator between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you would be required to deposit the entire amount in a bulk payment at the time you open the FD account.

Advantages to opening an RD account:

  • Interest Rate earned is similar to that of an FD
  • Safe and secure form of investment
  • Secure from fluctuations and volatility
  • Ideal for starters who wish to save money
  • Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
  • Can be opened with small minimum amount.
  • Lump sum received at maturity, including the interest
  • The rate of interest is higher as compared to an ordinary saving bank account
  • Flexible tenures to suit the budget of the individual
  • Recurring Deposit Interest rate is fixed so you are assured of a fixed return
  • Loan / overdraft facility available with some banks.

SBI Recurring Deposit

An RD in SBI instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to a SBI recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.

Key Features of SBI RD Account

  • Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
  • Ideal for people with a regular, steady income who may not be able to save enough money for the minimum amount to open an FD.
  • Flexible tenure options – you can choose tenures which can range from a few months to several years depending on your financial goal.
  • Attractive interest rates: Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
  • Safe, low-risk form of investment.
  • Quick liquidity options and access to your funds when you need it at minimal penal charges.

Types of Recurring Deposits Offered by SBI:

Regular Recurring Deposit:

  • Minimum Opening Balance for SBI RD account: Rs. 100 and in multiples of Rs. 10 thereof
  • No cap on the maximum amount
  • Preferential interest rate for senior citizens
  • TDS on Interest is applicable
  • Deposit period: Minimum 12 months to 120 months
  • Nomination facility available
  • Premature Closure of RD Allowed
  • Loan/ Overdraft against deposit up to 90% is allowed
  • Premature withdrawal allowed and for this, rules for TDR/STDR are applicable.
  • Passbooks issued

SBI Holiday Savings Scheme

  • Before you book this scheme, you would be required to visit the Thomas Cook website and choose a package of your choice.
  • The cost of the package you choose will be divided by 13. You will be redirected to the OnlineSBI portal where you can setup an e- Recurring Deposit (e-RD) account for 12 monthly installments. Please note that you would be required to have an existing SBI savings account to book this RD.
  • Your e-RD will earn interest as per the specified ongoing interest rates for the 12 month period.
  • At the end of 12 months, the maturity proceeds will be transferred to Thomas Cook to pay for your pre-selected holiday package.
  • Thomas Cook will fund the balance amount i.e. the 13th installment to purchase your package after factoring in the accrued e-RD interest.

SBI Flexi Deposit Scheme:

  • Similar to a Recurring Deposit but instead of a single fixed installment every month, you can decide to vary your installment amount and even the number of monthly, within the Annual sum defined.
  • Minimum Installment: Rs. 50
  • Minimum deposit amount: Rs. 5,000 in a Financial Year.
  • Maximum deposit amount: Rs. 50,000 in a Financial Year.
  • Deposit Frequency: Any number in a month and any time
  • Interest compounded quarterly
  • Tenure range starts from 5 years and maximum is 7 years.
  • Premature withdrawal is allowed.
  • Tax Deducted at Source
  • Loan facility available
  • Nomination facility available
  • Penalty for default in payment of minimum deposit will be Rs.50/- per Financial Year.

SBI e-RD scheme:

  • This scheme is available to Internet Banking Users only.
  • For existing customer having existing operative Saving / Current Account.
  • e-RD will be issued to only those who have valid PAN card held in the funded account.
  • Proceeds on maturity shall be credited in the account through which the term deposit was funded.

SBI Recurring Deposit Interest Rates

SBI RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a SBI Recurring Deposit by investing in any of its RD schemes. Following is an overview of SBI RD interest rates including SBI Short-Term RD Interest Rates. For the latest and accurate RD interest rates in SBI, it is advisable to check with the bank directly.

SBI recurring deposit interest rates 2015 – 2016

The current RD Interest rate ranges from 6% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and up to date interest rates as they fluctuate on a regular basis.

SBI Senior Citizen RD Interest Rates

Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.

How to apply for an RD in SBI:

If you are an existing SBI Customer, then you can book an e-RD right away. You just need to login to your net banking account for easy booking of Recurring Deposits.

If you are not a SBI Customer, then you will need to open a SBI Savings Account in order to book a SBI Recurring Deposit. Opening one is simple and quick. You can visit your nearest SBI branch and have a bank representative help you with the process. Or you can choose to apply online through their website.

SBI RD FAQs

What is the minimum and maximum amount required to open an RD with SBI?

The minimum opening balance for a regular recurring deposit with SBI is Rs. 100. There is no cap on the maximum amount.

What is the minimum deposit period?

The minimum deposit tenure is 6 months and can go up to as high as 120 months.

Is there any penalty associated with non deposit of monthly RD installment?

Yes, the penalty charges for non-Deposit of monthly installments are as follows:

  • For a/c of period 5 years and less: Rs. 1.50 per Rs. 100 per month
  • For a/c of period above 5 years: Rs. 2.00 per Rs. 100 per month

What is the documentation required to open an RD account?

You will require the following documents:

  • Filled-in application form
  • Passport size photograph
  • Proof of residence, PAN Card, ID Proof
  • Any other KYC documents as required by the bank