The Recurring Deposit (RD) of the country’s largest lender State Bank of India (SBI) or SBI RD gives an opportunity to common people to save money through regular monthly deposits of fixed sums over a period of time. It is often said that RD helps a person save a considerable amount of money through small savings. Notably, SBI RD is a risk-free investment with an assured return which allows an investor to accumulate huge wealth through small savings.
SBI RD interest rate
| Tenure | General Rates | Senior Citizen Rates |
|---|---|---|
| 1 year to 1 year 364 days | 5.00% | 5.50% |
| 2 years to 2 years 364 days | 5.10% | 5.60% |
| 3 years to 4 years 364 days | 5.30% | 5.80% |
| 5 years to 10 years | 5.40% | 6.20% |
SBI RD calculator for senior citizens
If the RD account holder is a senior citizen, he/ she will get an additional 0.80 percent SBI RD return. It means that a senior citizen will get a 6.2 percent return on SBI RD if he/she deposits the money for more than a 5-year tenor.
SBI RD penalty rules
AS per information at sbi.co.in, there is a penalty levied on non-payment of the monthly SBI RD. “For accounts with maturity period 5 years and less, Rs 1.50 per Rs 100 per month are charged while for accounts with maturity period above 5 years, Rs 2.00 per Rs 100 per month is charged on the depositors.”
However, in case six consecutive installments are not received, the SBI RD account shall prematurely be closed and the balance paid to the account holder.
SBI RD Service charge
“A service charge of Rs 10 will be levied on Recurring Deposit accounts paid out on or after the date of maturity, wherein there is default in payment of three or more consecutive installments and the account has not been regularized,” claims sbi.co.in.
SBI RD Calculator
Assuming an investor below 60 years of age invests Rs 1,000 per month in SBI RD for ten years, he or she will get an SBI RD interest rate of 5.4 percent. Remember, once the SBI RD account is opened, RD interest rate will remain the same even when the RD interest rate is lowered in the future. So, in the wake of the COVID-19 pandemic, various Indian banks including SBI are reducing deposit interest rates, it’s better to open the SBI RD quickly if you are planning to start SBI Recurring Deposit.
Using the SBI RD calculator, one’s Rs 1000 per month for 120 months at SBI RD interest rate of 5.4 percent, one’s SBI RD maturity amount will be Rs 1,59,155 or Rs 1.59 lakh.
