Depositing money in your SBI RD account generates a stable and passive source of income. Moreover, various exclusive features of these accounts provide you with several additional benefits. Read on to learn about SBI RD interest rates applicable and other essential details so you can take an informed approach toward your investment journey.
| Minimum Investment | ₹100 |
| Tenure | 1 year to 10 years |
| Interest Rates for General Citizens | 6.50% to 7.10% |
| Interest Rates for Senior Citizens | 7.00% to 7.60% |
| Loan Against SBI RD | Available |
| TDS on RD | Available |
SBI RD Interest Rates 2024 (Below ₹2 crores)
SBI offers an attractive interest rate to investors so they can gain stable returns from their investments. The SBI RD interest rates 2024 are as follows:
| Tenure | RD Rates for General Citizens | RD rates for Senior Citizens |
| 1 year – 1 year 364 days | 6.80% | 7.30% |
| 2 years – 2 years 364 days | 7.00% | 7.50% |
| 3 years – 4 years 364 days | 6.50% | 7.00% |
| 5 years – 10 years | 6.50% | 7.50% |
| 400 days “Amrit Kalash” Scheme | 7.10% | 7.60% |
*The RD interest rates might change with time. So, before beginning your investment journey make sure that you verify the data from the official website of State Bank of India.
Features of SBI Recurring Deposit Interest Rates 2024
SBI recurring deposits have become immensely popular among investors due to their exclusive features. Some of the unique features of SBI RDs include:
- You have the flexibility of investing as low as ₹100 per month and after that in multiples of 10.
- You can open an RD account in any branch of SBI that is nearest to your location.
- In case you miss out on the payment of your monthly instalments, you will need to pay a certain amount as a penalty.
- Minimum duration for which you will have to keep your RD account active is 12 months. Whereas, the maximum term for which you can keep investing is 120 months or 10 years.
- If you miss out on your payment of six consecutive instalments your account will be permanently closed. Under such circumstances, you will receive the balance amount.
- A recurring deposit account at the State Bank of India offers benefits such as the availability of a universal passbook, a nomination facility, and a lot more.
To avail these features, you can follow some simple steps to open an SBI RD account online.
How to Open an RD Account in SBI Online?
Once you have a brief idea regarding the RD percentage in SBI, you can check whether it meets your financial goals and start with your investment journey. Here are the steps that you may follow if you wish to open an RD account online in SBI:
- Step 1: Navigate to the official website of the State Bank of India.
- Step 2: Use your credentials to log in to the SBI official portal.
- Step 3: Move to the ‘Type of Deposit Account’ tab and select ‘e-RD’.
- Step 4: Click on the ‘Proceed’ button to move to the Recurring Deposit page.
- Step 5: Fill in the application form accurately with all the necessary details.
- Step 6: Read the terms and conditions and finally click on the ‘submit’ button.
You also have the option of opening the RD account offline if you are not comfortable with the online application process.
How to Open an RD Account in SBI Offline?
YHere are the steps you can follow to open an SBI RD account offline:
- Step 1: Visit the nearest branch of your bank.
- Step 2: Request the bank representatives to provide the Recurring deposit form.
- Step 3: Fill in the form with accurate details and submit it along with the necessary documents.
- Step 4: Pay the amount that you want to put in the RD account as your first deposit.
You can calculate your returns beforehand and accordingly decide the amount that you should invest in your SBI FD.
How to Calculate RD Interest Rates in SBI
Here is how you can calculate your returns based on the State Bank of India RD interest rate:
1. RD Calculation Formula
To calculate your returns from Recurring Deposit accounts, you can use the following formulae:
A = P x (1 + R/N)^NT
In this formula:
- A stands for maturity amount
- P stands for principal amount
- R stands for annual rate of interest
- N stands for the number of times the interest is going to be compounded in a year
- T stands for tenure
For example, if you invest ₹1000 each month for 3 years at 6.50%, then the formulae will be
A = 1000 x (1 + 0.0650/4)^4×3 = ₹39,824
To expedite the calculation process of your RD returns and stay away from errors, you can use an online SBI RD calculator.
2. Using Online Calculator
You can follow the steps below to use an online calculator and determine the returns for your investments:
- Step 1: Move the sliders to choose the monthly investment you wish to do.
- Step 2: Next you need to enter the rate of interest. You need to bear in mind that the rate of interest depends on the tenure you invest for.
- Step 3: After this you need to input details regarding the tenure for which you wish to invest.
Once done, the total investment and the total value will automatically appear on your screen. Thus, you can get instant and accurate results based on which you can decide the investment amount.
Eligibility Criteria to Start an RD Account with SBI
The eligibility criteria to open an RD account with SBI is simple making it easy for investors to park their funds. These criteria include:
- You should be a member of the Hindu Undivided Family or a resident of India.
- Even Non-Resident Indians can open an RD account with SBI.
- Minors can also open an RD account under the supervision of their legal guardians.
While opening an RD account in SBI, you must also keep the necessary documents ready.
Documents Required for SBI RD Account
You will need to furnish the following documents when opening a recurring deposit account with the State Bank of India:
1. Identity Proof Documents
- Aadhaar card,
- Voter ID card,
- PAN card
- Senior citizen ID card for applicants with an age above 60 years
2. Address Proof Documents
- Passports,
- Telephone,
- Electricity bill,
- Bank account statements
Many times, bank representatives might request you to submit additional papers when opening an RD account with SBI. So, make sure that you confirm the documents with the bank before submitting the application form.
Types of SBI RD Accounts
Following are the different types of RD accounts that SBI offers investors to deposit their money:
1. SBI Regular Recurring Deposit
This is one of the most basic types of RD accounts available for investors. Here, you have the flexibility to increase your investments in multiples of 10. Also, you can avail facilities like loan against the RDs, nomination and passbook facility by opting for this account. Some of its features include:
- Minimum Deposit: ₹100
- Maximum Deposit: No limit on the maximum amount
- Tenure: Between 1 year and 10 years
- Interest Rate: 6.50% to 7.10% for general citizens and 7.00% to 7.60% for senior citizens
- Eligibility: Indian citizens
2. SBI Flexi Deposit Scheme
For this type of RD account, you will have the complete liberty to deposit amounts of your choice. Also, there is no restriction on the frequency of deposits in a month. You can even get a passbook and nomination facility by investing in this account.
Some exclusive features of this type of RD account include:
- Minimum Deposit: ₹5000/year
- Maximum Deposit: ₹50,000/year
- Tenure: Between 5 and 7 years
- Interest Rate: No information available
- Eligibility: Indian citizens
3. SBI Holiday Savings Account
This RD account type is especially suitable for investors who love travelling across the globe. You can get exclusive offers on travel packages as well as an instalment option to pay off vacation package costs. Its features include:
- Minimum Deposit: Varies
- Maximum Deposit: Depends on the cost of vacation packages
- Tenure: 12 months
- Interest Rate: 6.50% to 7.10% for general citizens and 7.00% to 7.60% senior citizens
- Eligibility: Indian citizens
However, you might need to pay a penalty in case of delayed payments of the monthly instalments of RD accounts.
SBI RD Premature Withdrawal Rules
Following are some of the rules associated with premature withdrawals:
- You cannot make partial premature withdrawals without any penalty implying that you will have to take out all the money in one go.
- It is mandatory to pay a nominal penalty whenever you make a premature withdrawal from your RD account irrespective of its type.
However, to maximise your returns from the competitive SBI RD rates, try to avoid premature withdrawal. Irrespective of the time when you are pulling out the funds, the steps to close your RD account are simple.
SBI RD Premature Withdrawal Penalty
Following are the scenarios when you will have to pay a penalty against your RD account:
- If you miss out on the instalment payout due date for three consecutive months, an additional charge of ₹10 is applicable.
- If the duration of RD is 5 years or less, you will have to pay a penalty of ₹1.50 for every ₹100 per month
- In case the tenure of your RD investment is more than 5 years, you will have to pay a penalty of ₹2.00 for every ₹100 per month
If you are planning for premature withdrawal, you should be accustomed to the rules associated with it.
How to Close SBI RD Account Online?
Here are the steps that you need to follow to close SBI RD account online:
- Step 1: Navigate to the official website of SBI.
- Step 2: Log in to your net banking account using your credentials.
- Step 3: Move to the ‘Fixed Deposit’ tab and click on ‘e-TDR/e-STDR (FD)’ option.
- Step 4: Next from the dropdown menu of ‘Kind of deposit account’ select ‘e-RD’.
- Step 5: Click on the ‘Proceed’ button to move to the next page offering various FD-related services.
- Step 6: Tap on the ‘Close A/c’ button and again click on ‘Proceed’.
- Step 7: Enter your ‘High-security password’ and click on the ‘Confirm’ button.
Also, you can opt for closing an SBI RD account offline by following some hassle-free steps.
How to Close SBI RD Account Offline?
Below are the steps that you will need to follow to close your RD account offline:
- Step 1: Download the RD account closure form available on the official website.
- Step 2: Fill it out accurately with the required details.
- Step 3: Visit the nearest branch of SBI along with the closure form and necessary documents.
- Step 4: Talk to the bank representatives and submit all the necessary papers to close your RD account and receive the balance amount in your account.
TDS on SBI RD
You will have to pay a TDS of 10% if the interest that you are earning from your deposits is more than ₹40,000. In case of senior citizens it is ₹50,000. However, if the interest earned is less than or equal to ₹10,000, you will not have to pay a TDS. On the other hand, if you are unable to furnish your PAN the TDS will increase to 20%. You will have to pay the TDS as per the existing rules present at the time of opening your RD account.
Loan Against SBI Recurring Deposit
A loan against RD supplies you with the necessary funds in case of financial crisis. Here are some of the exclusive features of loan against RDs:
- Loan is available up to 90% of the balance amount in your RD account.
- No processing charges or prepayment penalties are available.
- Lower interest rates are available on loan against SBI Recurring Deposits in comparison to personal loans.
Conclusion
Attractive SBI RD interest rates as well as the presence of facilities like loan against RDs, nomination, availability of passbook and a lot more contributes to the popularity of SBI RD. Since it is a low-amount and risk-free investment, you can park your savings in RDs in your initial professional years and witness them manifold over time.
FAQs
No, you can only transfer the matured amount to the SBI account from which you have paid the instalments.
No, you cannot make partial withdrawals from your SBI RD account. You will have to pull out both principal and interest and close the account.
No, the interest rate remains constant throughout the tenure of SBI RD. Hence, you will earn interest according to the rate applicable at the time of account opening.
You can use any savings account and current account at SBI to transfer money to your RD account. However, make sure the account is active and not in a dormant or locked state.
No, the minimum time for which you need to open a recurring deposit account at SBI is 12 months.
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
