For a minimum deposit of Rs.100, you can open a Recurring Deposit (RD) account with the State Bank of India (SBI). The RD account can be created for a period ranging from 12 months to 10 years. Senior citizens are offered an additional interest in all tenures.
What is recurring deposit (RD)?
For many people in India, RD is a well-known savings scheme. The consumer makes payments in installments to the RD account and receives the maturity amount on the maturity date. Once set, the installment amount cannot be altered.
SBI Recurring Deposit (RD)
SBI RD interest rates range from 5.1 percent to 5.4 percent for the general public, with a 50 basis point increase for senior citizens. These rates will be in effect starting January 15, 2022. Customers with an SBI RD account must make monthly deposits of at least Rs.100 and in multiples of Rs.10. There is no maximum deposit amount.
SBI RD rates are applicable as of January 15, 2022
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1 percent - 1 year to less than 2 years
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1 percent - 2 years to less than 3 years
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3 percent-3 years to less than 5 years
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4 percent-5 years and up to 10 years
How to open an RD Account in SBI?
You can open a recurring deposit account with SBI in two ways:
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By visiting the branch
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Through Net Banking
If you are an existing SBI account holder, use your net banking username and password to log in to your online account and open an e-RD.
Premature withdrawal rules
SBI allows you to withdraw your RD money prematurely. If you withdraw the money before it matures, there will be a nominal penalty.
SBI does not allow partial withdrawals of RD.
Investors can open Recurring Deposit openings by either visiting a nearby branch or via net banking. SBI customers can use their ID and password to log in to their SBI net banking accounts to start investing in a Recurring Deposit.
