The State Bank of India provides an extensive selection of deposit schemes to enable individuals to make investments for both extended and immediate periods. SBI’s initiatives, as the most prominent bank in India, have garnered excellent results and superior returns for several decades, which has established them as a highly regarded investment option among consumers. Customers can obtain lucrative RD interest rates from SBI with an initial deposit of just ₹100. SBI permits customers to establish RD accounts for terms ranging from seven days to ten years, contingent on their specific financial objectives. The SBI RD rates of interest on deposits below ₹2 crores are 5% and 5.40%, respectively. Seniors are eligible to receive an extra 0.50% on top of the standard interest rate.
Interest Rates for SBI Recurring Deposits (RD) in 2023 (Below ₹2 Crore)
|
1 year – 1 year 364 days
| 6.80%
| 7.30%
|
2 years – 2 years 364 days
| 7.00%
| 7.50%
|
3 years – 4 years 364 days
| 6.50%
| 7.00%
|
5 years – 10 years
| 6.50%
| 7.00%
|
Features of SBI Recurring Deposit (RD) Account
1. Minimum Deposit: A minimum deposit of ₹100 is necessary for opening an SBI RD account; for higher amounts, deposits should be made in multiples of ₹10.
2. Time Frame: SBI RD accounts have a duration ranging from one to ten years.
3. Senior Citizens: Senior citizens are eligible for an additional interest rate of 0.50% in addition to the standard rate of interest extended to the general public.
4. Loan Against Deposits: SBI provides the option to obtain loans secured by deposited funds; 90% of the Recurring deposit balance may be utilised as the loan quantity.
5. Nominee: You can designate somebody to receive the mature amount using the nomination facility.
How to Open a Recurring Deposit (RD) Account in SBI?
There are two ways to start a recurring deposit account with SBI:
1. Offline Method: Fill up an Recurring Deposit Account opening form and submit the needed documentation at the nearest SBI branch. It takes an hour to twenty four for you to receive the RD certoficate from the bank.
2. Online Method: If you are an existing SBI client with an active internet banking account, log in with your net banking username and password and start an e-RD straight away. If you do not already have an SBI account, you must first open one. After the account is activated, you can use online banking to open an e-RD.
How to Calculate Recurring Deposit (RD) Interest in SBI?
The major reason for having an SBI Recurring Deposit account is to accumulate some savings. The maturity amount is determined by a number of factors, including the amount of the deposit, the interest rate, RD duration, TDS, and other comparable considerations. The simplest approach to compute the rate of interest on your recurring deposit is to utilise an SBI RD calculator, which is freely accessible over the internet. Formula used to compute the amount that will be accumulated upon maturity,
Here:
- A indicates the entire amount to be received on maturity.
- P is the principal amount.
- The yearly interest rate is denoted by r.
- n is the number of times interest has been compounded, and t denotes the duration.
Eligibility Criteria for Opening a Recurring Deposit (RD) Account with SBI
1. Individuals must meet all of the following necessary requirements to open an RD with SBI Bank.
2. A recurring deposit account can only be opened by Indian residents or members of a Hindu Undivided Family.
3. Non-resident Indians who apply for a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account can also open a recurring deposit account with SBI.
4. Individuals who are minors can open an RD account as long as their money are overseen by their legal guardians.
Documents Required for Starting a Recurring Deposit (RD) Account
For opening an SBI RD account, you must submit one or more of the following documents:
1. For Verification of Identity
- A voter ID card, or Aadhaar card
- PAN number
- Government identification card
- Ration card
- A senior citizen identification card
2. For Address Verification
- Passport Telephone or electric bill Bank account statements accompanied by a cheque
- Any post office certificate or identification card
Types of SBI Recurring Deposits (RD) Accounts
SBI currently offers three types of recurring deposits, Regular Recurring Deposits, SBI Holiday Savings Accounts, and SBI Flexi Deposit Scheme.
1. SBI Regular Recurring Deposit: This is the bank’s most basic and popular recurring deposit account. It can be created with a monthly deposit of at least ₹100. Tenure periods can range from one to ten years.
2. SBI Holiday Savings Account: A savings plan intended specifically for people who enjoy travelling. This offer allows you to save money on a Thomas Cook trip package. While travelling, you can choose a Thomas Cook Holiday savings account package, and the cash will be divided into 13 EMIs. The EMI money can be deposited monthly in the SBI Holiday Savings Account for a period of 12 months, following which Thomas Cook will deliver the 13th EMI after factoring in the applicable interest rate.
3. SBI Flexi Deposit Scheme: As the name implies, this scheme allows you to modify the deposit amount every month rather than paying a predetermined sum. A minimum of ₹5000 is required per year, with a maximum of ₹50,000 per year. Deposits can be made for a period of 5 to 7 years.
SBI Recurring Deposit (RD) Premature Withdrawal
SBI allows consumers to withdraw their RD funds prematurely. There will be a small penalty if the money is removed before maturity. SBI, on the other hand, does not permit partial withdrawals of recurring deposits. The processes for closing your State Bank of India (SBI) RD account online are as follows:
1. Log in to your net banking account at the SBI’s official website using your User ID and password.
2. Select ‘e-TDR/e-STDR (FD)‘ from the ‘Fixed Deposit‘ menu.
3. Select ‘e-RD (Recurring Deposit)‘ from the drop-down option for ‘type of deposit account‘ and click ‘Proceed.‘
4. A new page will appear, presenting various services associated with your RD account. Click ‘Close A/c‘ followed by ‘Proceed.‘
5.Your RD’s details will then be displayed to you. Simply enter ‘Close RD Account‘ in the ‘Remarks‘ area and press ‘Proceed.‘
6. Enter the ‘High-Security Password‘ and confirm by pressing the ‘Confirm‘ button.
7. You will then be notified that your RD account has been permanently closed.
Frequently Asked Questions
1. Is there a way to start a recurring deposit (RD) account using Internet banking?
Answer: Yes, if you have an Internet banking user name and password, as well as at least one transaction account associated with the username, you can start a recurring deposit (RD) account using Internet banking.
2. What is the minimal holding period for an internet deposit?
Answer: The deposit duration must be at least 12 months (1 year) and no more than 120 months (10 years).
3. What is the bare minimum for a recurring deposit account?
Answer: The monthly installment must be at least ₹100. After the account is opened, the amount and number of installments cannot be modified.
4. How is the maturity value determined? Can I make an inquiry before launching e-RD?
Answer: The amount due at maturity is determined by the customer’s installment, duration, and account type. The maturity value of an RD is rounded off to the closest rupee and paid after 30 days/one month deposit of the final installment or the expiration of the period for which the deposit was received, whichever comes first. You can inquire about the maturity value, maturity date, and interest rate without opening an e-RD by using the “Enquiry” tab on the e-RD website.
5. Is it possible for me to terminate my RD account online?
Answer: Yes, you may shut down the RD a/c online via the “Close A/c” page in e-RD, which are only made through e-RD. RD a/cs generated in any other way cannot be closed using the “Close a/c” tab in e-RD.
6. Is there a time limit for creating an e-RD online?
Answer: Yes, From 8:00 AM Indian Standard Time to 8:00 PM Indian Standard Time, you may create an e-RD online. Requests submitted after this time will be processed for the next available opening hours.
7. How effective is SBI RD?
Answer: Savings in any form is beneficial, and recurring savings are one of the most popular risk-free deposit options. The main goal is to gain some extra income from your savings because the money is automatically deducted from your account and you will save a set amount of money each month. Recurring deposits, on the other hand, are not appropriate for people who want their savings to grow exponentially; in this instance, the money can be put in mutual funds or a Systematic Investment Plan. SBI provides flexible deposit options, such as the SBI Flexi Deposit Scheme and the SBI Holiday Savings Account, through which one can effortlessly save money.
8. Can I transfer the maturity amount of an RD to whatever account I want?
Answer: No, the amount due at maturity can only be transferred to the account from which it was originally funded.
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