SBI Bank Recurring Deposit Schemes & Interest Rates

SBI recurring Deposit Rates

The RD accounts offered by SBI come with great features and benefits. The tenure for an SBI Recurring Deposit account ranges from 12-120 months and the interest rates vary from 6.7%-6.85% and an additional interest rate of 0.5% applies to the accounts for senior citizens.

Tenure	Regular RD Interest Rates	Senior Citizen RD Interest Rates
1 Year to less than 2 year	6.70%	7.20%
2 years to less than 3 years	6.75%	7.25%
3 years to less than 5 years	6.80%	7.30%
5 years and up to 10 years	6.85%	7.35%

Important Information on SBI RD Scheme

Minimum Amount to be Deposited	Rs. 100 (The deposit should be made only in multiples of Rs.10)
Tenure	12 months to 120 months
Additional Interest Rate for Senior Citizen	0.50%
What is the Maximum Interest Rate Offered by the Bank and for what Tenure?	6.75%, 5 years to 10 years
Loan Against Deposit	Up to 90% of the balance available in the SBI recurring deposit account can be used as loan amount.
TDS on RD	TDS will be deducted as per the income slab to which the applicant belongs.
Penalty on Delay	If the term period of the recurring deposit account is less than or equal to 5 years, the charge levied is Rs. 1.50 per Rs.100 per month. If the term period of the recurring deposit account is more than 5 years, the charge levied is Rs. 2 per Rs.100 per month.
Minimum Amount to be Deposited	Rs. 100 (The deposit should be made only in multiples of Rs.10)

Eligibility Criteria for SBI Recurring Deposit Account

Below mentioned is a list of entities who are eligible to apply for SBI RD account:

• Indian Citizens
• Member of HUF
• NRIs can also open their RD account with SBI through NRE/NRO accounts
• Minor under the guardianship of a legal/natural guardian
• A person holding a savings account with SBI

Documents Required to Open SBI Recurring Deposit Account

If you already have an SBI account then you may visit the bank to open the RD account or open an RD account through net banking. If you don't have an SBI account, you will be required to provide the following documents

• Identity Proof
• Copy of Passport
• PAN Card
• Aadhar Card
• Voter ID
• Driver's Licence
• Ration Card
• Government issued ID card
• Senior citizen card
• Residence proof
• Phone Bill
• Electricity Bill
• Bank Statement
• Recent Passport size photographs
• Completely filled Application form

How to Apply for An SBI Recurring Deposit Account?

You can use your net banking account to open an e-RD account in few minutes. You can walk into your nearest SBI Branch to open your account. You will be required to open an SBI savings account if you are not an SBI account holder. After opening an account you can open the e-RD account by logging into your net banking account

SBI Recurring Deposit: Premature Withdrawal Rules

SBI allows its customers to withdraw their RD prematurely n case of emergency. The bank charges a nominal penalty if the customer withdraws on premature withdrawal of an RD. The bank doesn't allow partial withdrawals on RDs.

Medium-Term and Long-Term SBI RD Interest Rates

The medium-term RD has a tenure varying from 3-5 years and the interest rate offered by the bank is 6.7% for regular customers and 7.2% for senior citizens. For a tenure of 1-2 years, the interest rate applicable is 6.65% for regular customers and 7.15% for senior citizens. For long-term deposits of tenures ranging from 5-10 years, the interest rate offered is 6.75%

SBI RD Interest Rates for Senior Citizen

The rate of return for SBI RD customers is 0.5% higher than the regular customers. For a medium-term tenure, the rate of interest applicable is 7.15%-7.2% and for the long-term, the interest rate applicable is 7.25%

Types of Recurring Deposits Offered By SBI

The two major types of RD offered by SBI are the SBI Holiday Savings Account and SBI Regular Recurring Deposits

SBI Regular Recurring Deposits:

These accounts are the most common RD account that is offered by SBI. These accounts can be opened by the eligible people for savings as well. The depositors are required to make a minimum deposit of 100 rupees and the tenure ranges from 1-10 years. SBI declares the rate of interest on its official website

SBI Holiday Savings Account:

For someone who loves to travel this RD, account is the best option. SBI Holiday Savings Account was introduced when SBI came together with the leading travel advisory company, Thomas Cook. The customers can submit any amount of money each month to avail a vacation on the Thomas Cook website.

After choosing a package on the Thomas Cook website, the total cost of the package will be shown and you can pay 12 monthly installments after setting up an e-Recurring Deposit account with SBI.

SBI Flexi RD Scheme

Under the SBI Flexi RD scheme, the depositor can choose the deposit amount each month instead of paying a fixed amount each month.

The minimum amount that is required to be deposited in a financial year is 5000 rupees and the maximum deposit amount is 50,000 rupees per annum. The tenure for SBI Flexi RD accounts ranges f4rom 5-7 years

SBI Recurring Deposit: Is it the best way to save?

It is preferable to choose the SBI RD scheme since the amount that is required to be deposited each month gets debited from your account each month. However, if someone wishes to create wealth investing in RDs is not a great idea. If you want to generate wealth then you may invest in mutual funds or systematic investment plans.

Tax benefits on SBI Recurring Deposit

The money deposited in the SBI RD account is taxable under the Income Tax Act 1961. The amount invested in RD is mentioned in the TDS and a 10% tax is applicable on the interest earned by a person who has gained more than 10,000 for a financial year

If you want to save tax on the interest that you have gained through SBI RD account, you can do so by filling up the Form 15G or Form 15H

When can I file Form 15G?

• If you are an Indian citizen or a member of HUF
• If the tax calculated on your income is zero
• If the total interest that you have earned is less than the minimum exemption limit for a particular financial year

When to file a Form 15H?

• If your age is 60 years or above you can submit the Form 15H
• If you are an Indian citizen or HUF
• If the tax calculated on your income is zero

SBI Recurring Deposit Calculator

People who opt for RD can earn additional income through the RD account. The maturity amount offered depends on various parameters like the deposit amount, the rate of interest provided by the bank, TDS applicable on the deposit

You can calculate the interest rate applicable on your deposit through the RD calculators. You can use any of the calculators available on the website to earn your Recurring Deposit

FAQs on SBI Recurring Deposit

Can I open an SBI recurring deposit account be opened online?

Yes, an SBI recurring deposit account can be opened through net banking.

In whose name is an SBI recurring deposit account opened?

The name of the RD account holder must be the same as the SBI account form which the money is being funded

What are the different types of accounts through which the SBI RD account can be opened?

Any active account can be used to open an SBI RD account.

Can I transfer the money received after maturity to any account?

No. The money received after maturity can be transferred to the account that initially funded it.