SBI Recurring Deposit Interest Rates 

Check - Current RD Interest Rates of Popular Banks

What is a Recurring Deposit ?

A Recurring Deposit is a special type of term deposit offered by the banks and post office which lets people deposit a specific amount every month into their RD account and earn returns at the rates offered for FDs. It is similar to initiating an Fixed Deposit of a specific amount in monthly installments. This scheme matures on a specific future date along with all the deposit amounts made every month. This scheme allows individuals an opportunity to build up their savings through regular monthly deposits of a fixed amount over a fixed tenure. The minimum tenure for an RD is generally 6 months and the maximum varies from institution to institution. RDs can be funded by standing mandates which are the orders by the depositors to their bank to withdraw a specific amount from their current/saving account and credit to the recurring deposit account.

State Bank of India Recurring Deposit

The State Bank of India (SBI) is one of the largest financial institutions, operational since 1955 in India. It offers various types of financial products & services to individuals to meet their banking, financial, and investment needs. The bank offers its customers a deposit facility of RD (Recurring Deposits) to invest a certain amount every month and earn decent interest rates on it over a specific period. The depositors simply need to deposit the amount per month from the time of opening the account and choose a term/tenure that seems convenient and feasible to them. SBI RD rates are quite decent and competitive compared to the rates offered by other banks. Let us have a look at certain aspects and rates of these RDs as SBI has revised the rates.

Also Read : ICICI Bank Fixed Deposit Interest Rates

ELIGIBILITY

1. Every Indian resident is eligible to open an RD account.
2. Minors can open their RD account under the supervision of the guardian which must act as the operating member.
3. Members of Hindu Undivided Families (HUF)
4. Societies, Clubs, Associations, etc.
5. NRIs are also eligible to open an RD account
6. Depositors are required to open a savings account with SBI before opening an RD account.

Documents Required 

Identity Proof:

For this, you can submit Aadhaar Card, PAN Card, Voter ID, Ration Card, or any other Government ID proof.

Address Proof:

You can submit an account statement, passport, electricity, telephone bill, or any other document as address proof. 

Read More : Bandhan Bank FD Interest Rates

Features of SBI RD Account

Tenure:

The minimum tenure for an SBI RD account should be 12 months and the maximum tenure can be 10 years i.e. 120 months.

Amount:

The minimum deposit amount can start from Rs. 100 per month and thereafter, depositors can invest in multiples of Rs. 10. There is no maximum cap on deposit.

Nomination:

Nomination facility is available for RD account at the time of opening of the account and also during the tenure of RD.

Transferability:

Transferability of RD account among SBI branches is allowed PAN India.

Senior Citizens Interest Rate:

The interest rate offered to senior citizens will be 0.50% more than the applicable rate.

Interest Rates for SBI staff and pensioners:

The Interest rate offered to SBI Staff and pensioners will be 1% more than the applicable rate. 

Loan Facility:

A loan against the funds invested in the SBI RD account can be used by investors to avail loan/ overdraft of up to 90% of the amount against their account. 

Types of SBI Recurring Deposit 

SBI Regular RD account:

It is the most preferred and the basic RD account offered by the SBI and is suitable for all investors. It has a minimum tenure of 1 year and comes with a maximum tenure of up to 10 years. The monthly installment starts from Rs. 100 and thereafter in multiples of Rs 10.

SBI Flexi Deposit Scheme:

As the name suggests, in this scheme, investors are allowed to deposit varying amounts instead of paying a fixed amount every month. Here, the minimum deposits should be Rs. 5,000 in a year and maximum deposits are capped at Rs. 50,000. The tenure of this scheme ranges from 5 to 7 years.

SBI Holiday Saving account:

This scheme is specially developed to help vacation and travel enthusiasts in affiliation with Thomas Cook. The maturity amount is decided based on the package opted by the depositors on the Thomas Cook website. The cost will be divided into 13 installments from which 12 will be paid by the depositors and the 13th one will be contributed by Thomas Cook after considering the maturity proceeds upon completion of 12 installments. 

Premature Withdrawal

SBI allows its investors to withdraw their funds from RD prematurely and if it’s withdrawn before maturity, a nominal penalty will be levied. Nevertheless, partial withdrawal of funds from the RD account is not allowed. 

Penalty and Charges 

Penalty charges for non-deposit of monthly installments in RD account for:

• An account with a tenure of 5 years or less: Rs. 1.50 per Rs.100 every month.
• An account with a tenure above 5 years: Rs. 2 per Rs.100 every month.

A service charge of Rs. 10 is levied on RD accounts paid out on or after the maturity date wherein there has been a default in payment of 3 or more installments and the account is not being regularized.

In case 6 consecutive installments are not made into the RD account, the account will be prematurely closed and the balance amount shall be paid to the depositor.

Taxation on SBI RD Account

RDs are taxable under the provision of the Income Tax Act, 1961. The amount deposited in the RD account is liable for tax in the annual income of an individual and the interest received thereon will be subject to 10% TDS. TDS on RD account is only levied in a financial year if the gross interest being received is more than Rs. 10,000. Investors can also avoid TDS applicable on their interest income by submitting Form 15H or 15G (as applicable).  

Also Read:

ICICI Bank Fixed Deposit Interest Rates

HDFC Bank FD Interest Rates
Post Office RD Interest Rates
Latest FD Interest Rates