The State Bank of India (SBI), the country’s largest state-owned bank, has revised the interest rate it offers on Recurring Deposit (RD) accounts. Recurring Deposit (RD) is a popular savings scheme that offers a fixed interest rate on the investment amount of regular instalments. The customer receives the maturity amount when the tenure of RD is over. At the time of maturity, the invested amount is paid back to the user along with accumulated interest. The instalment amount cannot be changed once fixed. An RD account can be opened with a bank or post office. The RD offered by the State Bank of India (SBI) and Post Office are most popular.
State Bank of India allows you to open a Recurring Deposit (RD) account with the bank for a minimum deposit of Rs 100. The minimum period of deposit starts at 6 months and can go upto 10 years. The rate of interest on RD is the same as Fixed Deposit (FD) and more than a savings account. Senior citizens are offered an additional interest in all tenures.
About State Bank of India Recurring Deposit
State Bank of India RD interest rates varies between 5.1 per cent-5.4 per cent for the general public and an additional interest rate hike of 50 basis points for senior citizens. These rates are effective from January 15, 2022. In the SBI RD account, customers are required to make monthly deposits of a minimum of Rs 100 and in multiples of Rs 10. There is no maximum limit on the deposits.
SBI RD Rates Effective January 15, 2022:
Recurring Deposit maturing in 1 year to less than 2 years: 5.1 per cent interest rate
Recurring Deposit maturing in 2 years to less than 3 years: 5.1 per cent interest rate
Recurring Deposit maturing in 3 years to less than 5 years: 5.3 per cent interest rate
Recurring Deposit maturing in 5 years and up to 10 years: 5.4 per cent interest rate
How to Open an RD Account in the State Bank of India?
You can open a recurring deposit account with SBI in two ways:
- By visiting the branch
- Through Netbanking
If you are an existing State Bank of India account holder, use your net banking username and password to log in to your online account and open an e-RD.
Who can Open SBI RD Account?
Only Indian residents or members of a Hindu Undivided Family can open a recurring deposit account. Non Residential Indians can also have a recurring deposit account with SBI provided they apply for Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account.
Premature withdrawal rules
State Bank of India allows you to withdraw your RD money prematurely. If you withdraw the money before it matures, there will be a nominal penalty. State Bank of India does not allow partial withdrawals of RD.
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