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HomeBankingSBI Recurring Deposit (RD) Interest Rates 2024- Types, Eligibility, Features

SBI Recurring Deposit (RD) Interest Rates 2024- Types, Eligibility, Features

The SBI provides a wide array of deposit plans to enable people to make both short-term and long-term investments. SBI, the biggest bank in India, offers investment alternatives that are well regarded by customers because of their consistent track record of impressive performance and exceptional returns over many years.

Customers of SBI may take advantage of excellent Recurring Deposit (RD) interest rates with as little as a Rs. 100 minimum deposit amount. SBI permits the creation of RD accounts for terms ranging from seven days to ten years, based upon the customer’s financial objectives. The bank offers 5.00% and 5.40% SBI RD rates of interest on deposits under Rs. 2 crore. On regular interest rates, seniors are eligible for an extra 0.50 percent interest rate.

Attribute Value
Minimum Deposit Amount Rs. 100 monthly (for any higher amount, deposit in multiples of Rs.10)
Tenure 1 year to 10 years
Additional Interest Rate for Senior Citizens From 0.50% to 0.80%
Maximum Interest Rate (General) 5.40% for a tenure that ranges between 5 years and 10 years
Maximum Interest Rate (Senior Citizens) 6.20% for a tenure that ranges between 5 years and 10 years
Loan Against Deposit Available
TDS on RD Applicable
Late Penalty Tenures of 5 years or less: Rs.1.50 per Rs.100 per month, Tenures higher than 5 years: Rs.2 per Rs.100 per month

Interest Rates for SBI Recurring Deposit (less than Rs. 2 crore) in 2024

The latest SBI RD interest rates for the year 2024 are listed below.

Term Interest Rate (Range)
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% – 7.00%

Read More: ICICI Bank Savings Account Interest Rate

SBI Recurring Deposit (RD) Rates of Interest 2024 Features

Some key features of SBI Recurring Deposit (RD) interest rates 2024 are: 

  1. To start an SBI RD account, you must deposit at least Rs. 100 (or multiples of Rs. 10 if the sum is more).
  2. An RD account at SBI can be opened for one year to ten years.
  3. Seniors are eligible for an additional 0.50% interest rate beyond the standard rate that is provided to common residents.
  4. You can designate someone to receive your maturity amount using the nomination facility.
  5. SBI provides the ability to take out loans against deposits; 90% of the remaining RD balance may be used as the loan amount.
  6. When creating an account, the deduction for TDS on RD is allowed and governed by the current income tax laws.
  7. The bank assesses the following penalties for late payments:
  • Rent for a maximum of five years at a rate of Rs. 1.50 for every Rs. 100 per month
  • Tenures longer than five years: Rs. 2 for each month of Rs. 100.

How to Open an SBI Recurring Deposit (RD) Account?

There are two methods available to start a Recurring Deposit (RD) account with SBI:

  • At branch 

Go to the SBI branch that is closest to you, fill out an RD opening form, and bring the necessary paperwork.

  • Using your net banking password and username

 You can start an e-RD straight away if you are a current SBI client with an active internet-based banking account. But first, you must establish an account if you don’t already have one with SBI. You can open an e-RD and use the online banking feature after your account is activated.

How to Determine SBI RD Interest Rates?

Getting some more money in savings is the main reason to create an SBI RD account. The deposited amount, interest rate, RD duration, TDS, and other comparable elements are some of the factors that affect the maturity amount. The simplest method for figuring out the rate of interest on the recurring deposit is to utilize an SBI RD calculator, which is readily available online.

A = P(1+r/n) ^ nt is the formula used to determine the amount that will be accumulated upon maturity.

Here:

A is the total sum.

P is the principle.

R is the interest rate per year.

T is the tenure, while n is the total amount of compound interest cycles.

Eligibility to Open an Recurring Deposit (RD) Account with SBI

In order to initiate an RD with SBI Bank, applicants must meet the following requirements for eligibility:

  • Opening a RD account is restricted to Indian citizens and members of Hindu Undivided Families.
  • Indians who do not reside in residential areas are also eligible to open a RD account with SBI by applying for an NRE or NRO account, which is a non-resident external account.
  • Minors are permitted to create an RD account as long as their legal guardians keep an eye on their funds.

Read More: Eligibility for SBI Fixed Deposit Double Scheme

Documents Needed to Open an Recurring Deposit (RD) Account

You must provide one of the documents listed below in order to create an SBI RD account:

  • Verification of identification 

  • An Aadhaar or voter ID card
  • PAN card
  • official identification card
  • Food card
  • An ID card for older citizens
  • Evidence of Address 

  • Passport statements Bank statements for accounts with a cheque
  • phone or power bills
  • Any ID card or certificate that the post office issues

Read More: Documents required for SBI Net Banking

SBI Recurring Deposit (RD) Account Types 

Currently, SBI provides three different kinds of recurring deposits: SBI Flexi Deposit Scheme, SBI Holiday Savings Account, and Regular Recurring Deposit. Let us examine each one of them briefly:

SBI Regular Recurring Deposit: This is the bank’s most popular and entry-level recurring deposit account. A requisite monthly deposit of Rs. 100 or more is required to open it. Ten years or one year might be the duration of the appointments.

The SBI Holiday Savings Account: It is a savings plan created especially for travelers. With this program, a Thomas Cook trip package can be cheaper. When traveling, you can select a Thomas Cook Holiday savings account package, and the total will be divided into 13 equal monthly installments. For a period of 12 months, the EMI money may be put monthly into the SBI Holiday Savings Account. Thomas Cook would then give the 13th EMI after deducting the relevant interest rate.

SBI Flexi Deposit Plan: This plan allows you to adjust your monthly deposit amount rather than paying a set sum each month, as the name implies. A deposit of at least Rs. 5,000 and no more than Rs. 50,000 should be made each year. Five to seven years are allowed for deposits.

Read More: Types of ICICI Bank Savings Account

Premature Withdrawal Rules for SBI Recurring Deposit (RD)

Customers of SBI are able to take early withdrawals from their RD funds. Should the funds be removed before the maturity date, a small penalty will apply. Nevertheless, withdrawals in part of recurring deposits are not permitted by SBI.

SBI Recurring Deposit (RD) Account Closing Online

The steps involved in closing your State Bank of India (SBI) RD account online are as follows:

  1. Visit the official SBI website and enter your User ID and password to access your net banking account.
  2. Select “e-TDR/e-STDR (FD)” from the “Fixed Deposit” menu.
  3. Click “Proceed” after choosing e-RD (Recurring Deposit) from the drop-down option labeled “kind of deposit account.”
  4. A new page with a list of services related to your RD account will appear. After selecting “Close A/c,” click “Proceed.”
  5. After that, you will see the details of your RD. Click “Proceed” after entering “Close RD account” in the “Remarks” area.
  6. After entering the “High-Security Password,” click “Confirm.”

Any type of savings is a wonderful thing, and one of the most popular risk-free deposit options is recurring deposit. The primary goal is to generate additional income from your savings, which will be deducted automatically from your account each month in a predetermined amount. If someone wants their savings to increase significantly, repeated deposits are not the best option; instead, they should put their money in mutual funds or an organized investment plan. With programs like the SBI Flexi Deposit Scheme and SBI Holiday Savings Account, SBI provides flexible deposit alternatives that make it easier than ever to save money.

Read More: IndusInd Bank Net Banking | Fincare Net Banking | ESAF Net Banking

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