State Bank of India Recurring Deposit (RD) account offers a monthly investment option with a handsome return at the end of specified years with an option to extend the accounting period. SBI RD interest rates are quite competitive and are higher than the rates on their savings deposits.
It is similar to making FDs of a certain amount in monthly installments. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time.
SBI RD Interest Rate:
RD interest rates of SBI are determined by changes in RBI monetary policy such as repo rate, base rate, etc, the internal liquidity position of banks, economic conditions, and the level of credit demand.
What is the current SBI RD Interest Rate?
Current RD interest rates in SBI are tabulated below. Here RD rates range is given for different deposit tenure from 1 year – 10 years:
Revised SBI RD Interest Rates On Retail Domestic term deposits (Below Rs. 2 crores) interest rates: (All figures in % per annum)
| Bank Name | Tenors | Rates For Public | Rates for Senior Citizens | As on Date |
|---|---|---|---|---|
| SBI | 1 year to less than 2 year | 5 | 5.5 | 2021-11-25 |
| SBI | 2 years to less than 3 years | 5.1 | 5.6 | 2021-11-25 |
| SBI | 3 years to less than 5 years | 5.3 | 5.8 | 2021-11-25 |
| SBI | 5 years and up to 10 years | 5.4 | 6.2 | 2021-11-25 |
The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.50%).
The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.
You may check the updated SBI Interest rate on RD at SBI official website here.
How is the SBI RD rate of interest calculated?
RD interest rates of SBI are determined by changes in RBI monetary policy such as repo rate, base rate, etc, the internal liquidity position of banks, economic conditions, and the level of credit demand.
The interest you earn on your deposited amount in RD depends on a lot of factors such as the invested amount, tenure for the deposit, rate of interest, and compounding frequency.
One of the best ways to calculate the interest earned on your SBI RD is by using the SBI RD calculator available over the internet. It is the most hassle-free way of calculating interest.
You may Calculate the SBI RD Interest rate by using: SBI RD Calculator
This RD Calculator for SBI requires some data like – Your Monthly Deposit Amount, Rate of Interest of your bank, Period (in No. of Months), interest Compounding Frequency. After calculation, you will get the Maturity Amount after the maturity period and Effective yield in %.
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Information SBI RD Interest Rates:
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Table of Contents |
What is an SBI RD Account?
Recurring Deposits are a special kind of Term Deposits offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
State Bank of India Recurring Deposit (RD) account offers a monthly investment option with a handsome return at the end of specified years with an option to extend the accounting period. It gives you a higher rate of interest than a savings bank account.
It is similar to making FDs of a certain amount in monthly installments. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time.
SBI RD interest rates are quite competitive and are higher than the rates on their savings deposits.
SBI RD Features:
- Period of deposit Minimum – 12 months, Maximum – 120 months
- Available at all branches
- The minimum deposit amount is Rs. 100/- per month (thereafter in multiples of Rs. 10/-)
- Maximum Deposit Amount: No Limit
- Penalty charges for non-Deposit of monthly Instalments:
- For a/c with maturity period 5 years and fewer Rs. 1.50 per Rs. 100/- per month
- For a/c with maturity period above 5 years- Rs. 2.00 per Rs. 100/- per month.
- 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 a default in payment of three or more consecutive installments and the account has not been regularized.
- In case six consecutive installments are not received, the account shall prematurely be closed and the balance paid to the account holder.
- Instructions for disposal of maturity proceeds are accepted at the time of opening of accounts.
- Nomination: Available
- Universal Passbook will be issued.
- Loans/OD up to 90% of the deposited amount available
- Transferability among our Branches: Allowed
- Rate of Interest as applicable to Term Deposits
- The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate.
- The rate applicable to all Senior Citizens age 60 years and above will be 0.50% above the applicable rate.
Terms and Conditions of SBI RD:
- Premature Closure is available.
- For Term Deposit up to Rs 5.00 lacs, the penalty for premature withdrawal will be 0.50% (all tenors).
- For Term Deposits above Rs 5.00 lacs, the applicable penalty will be 1% (all tenors).
- The interest shall be 0.50% or 1% below the rate applicable at the time of Deposits for the period Deposit remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower.
- However, no interest will be paid on Deposits that remain for a period of fewer than 7 days.
- TDS is applicable as per Income Tax Rules.
- Form 15G/H can be submitted by the Depositor to get an exemption from tax deduction as per Income Tax Rules.
Eligibility for SBI Recurring Deposit (RD):
You are eligible if you are one of the following:
- Resident individuals
- Hindu Undivided Families
- Private & Public Limited Companies
- Trust & Societies
Types of SBI Recurring Deposits:
There are 3 types of RD schemes offered by SBI to suit the needs of consumers:
Regular Recurring Deposit account:
This particular type of SBI RD account is for those who want to build up a savings corpus by depositing a percentage of their monthly income into the account. This account offers long-term savings options, and their tenure can extend for up to 10 years.
Also, the interest rates offered on this account remains fixed throughout the tenure. That is why it is best to start depositing in the account when SBI offers high-interest rates.
SBI Holiday Savings Account:
This exclusive deposit account facilitated by SBI was created in partnership with Thomas Cook for individuals looking to start holiday savings account for their travels. When individuals choose a holiday package from Thomas Cook, the cost of the package is divided into 12 equal installments. Individuals can also earn interest on their deposits.
Flexi Deposit Scheme by SBI:
In this unique RD scheme offered by SBI, individuals can change their monthly deposit amount according to their convenience. As its name suggests, it provides individuals with the flexibility of depositing different amounts for each month.
For this account, individuals can choose to deposit a minimum amount of Rs. 5000 each year and it can go up to Rs. 50,000 per year.
How to check SBI RD maturity value?
Recurring Deposits are a special kind of Term Deposits offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
The maturity amount of Recurring Deposit (RD) invested in SBI bank for a specified period can be calculated by using the SBI RD calculator available over the internet.
The SBI RD Calculator for SBI RD available here requires some data like – Your Monthly Deposit Amount, Rate of Interest of your bank, Period (in No. of Months), interest Compounding Frequency. After calculation, you will get the Maturity Amount after the maturity period and Effective yield in %.
FAQs about SBI RD rate of interest:
What is the Tenure Range for SBI RD Account?
The tenure for SBI RD ranges from 1 year to 10 years.
Is there any minimum amount required to open an RD account?
The minimum amount needed to open an RD in SBI is Rs. 100.
How to open an RD account in SBI?
If you are an existing customer of SBI and have active internet banking, you can just log in to your account and open one RD account. New customers can either visit the nearest SBI branch or apply on SBI’s website and get an RD account opened.
Can I deposit an additional amount into my already existing RD?
Yes. Only in the case of the Flexi RD Scheme in SBI.
You are here to calculate the SBI RD interest rate on your money in SBI’s Recurring Deposit (RD) account. Explore the current SBI RD interest rate here.
