Savings is an integral part of our life. You need savings to fulfill your dreams or meet an emergency and a recurring deposit is one of the best ways to systematically save for your future. In this post, let’s take a look at the SBI Recurring Deposit Interest Rates 2021.
As SBI is one of the oldest banks in India and millions of people rely on SBI banks for their savings plans, let’s look into the integral aspects of recurring deposits and SBI recurring deposit accounts. Here is the latest recurring deposit interest rate of SBI 2021.
Table of Contents
What is a Recurring Deposits Account?
A Recurring Deposit Account is a great way of saving for short-term or long-term financial goals. These accounts are opened to earn interest on term deposits. You need to deposit a specific amount monthly for a specific period and the bank gives the interest on the deposited amount quarterly or yearly. These accounts are quite popular and if you have been planning to open one, read the article till the end.
SBI Recurring Deposit Scheme
The State Bank of India offers SBI recurring deposit schemes to help common people inculcate the virtue of saving and earn some interest on the deposited amount. SBI recurring accounts can be opened in any branch or through their official online portal with a minimum deposit of Rs.100 or deposit of any amount in multiples of Rs.10. The minimum and maximum periods for this account are 12 months and 120 months respectively. Before opening your account, you must know about the State Bank of India recurring deposit interest rate.
SBI RD Account Interest Rate 2021
Check out the following chart to know the SBI recurring deposit interest rates 2021 as updated on 25th June 2021. The recurring deposit interest rate of SBI ranges from 5% to 5.40% for deposits less than 2 crores. Senior citizens receive an additional 0.5% on recurring deposit interest SBI.
SBI RD Interest Rates 2021
| SBI Recurring Deposit Interest Rates 2021 | ||
| Tenure | RD Rates for General Citizens | RD Rates Senior Citizen |
| 1 year – 1 year 364 days | 5.00% | 5.50% |
| 2 years – 2 years 364 days | 5.10% | 5.60% |
| 3 years – 4 years 364 days | 5.30% | 5.80% |
| 5 years – 10 years | 5.40% | 6.20% |
The data of the recurring deposit interest rate of SBI 2021 is collected from the State Bank of India’s website on June 25, 2021. The SBI recurring deposit interest rates 2021 mentioned above are subject to change at the discretion of the bank.
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Features of RD account in SBI Bank
1. The minimum and maximum tenure of this account is 1 year to 10 years.
2. You can add a nominee to your account to collect the maturity amount at the end of tenure.
3. The minimum deposit amount is Rs.100/- per month and thereafter in multiples of Rs.10/-.
4. There is no limit for the maximum deposit amount.
5. State Bank of India allows RD account holders to take a loan against their account. You can avail of 90% of your account balance as a loan.
6. These accounts are subjected to TDS deduction and the rate of TDS is applied according to the account holder’s income tax slab and the income tax rules existing at the time of account opening.
7. A penalty is charged in case of late deposit to your account Rs.1.50 for Rs.100 per month and Rs.2 for Rs.100 per month for the accounts having a tenure of 5years or less and more than 5 years respectively.
8. These accounts are transferable within their branches.
9. A universal passbook is issued.
10. Instructions regarding the disposal of maturity amount are accepted at the time of opening of accounts.
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How to plan SBI Recurring Deposit Scheme?
SBI has two types of recurring deposit accounts – Flexi-RD and regular RD. If you are planning to open an account, you are recommended to use the SBI RD calculator. You just need to input the term deposit amount and tenure, the calculator will show you the maturity amount. The best way to plan an SBI RD scheme is to view the results using the SBI RD account calculator.
Eligibility Criteria
To open an RD a/c, you need to comply with the following eligibility criteria:
1. Indian residents and or members of HUF (Hindu Undivided Family) can open an account.
2. NRIs (Non-Resident Indians) can also open the account through their NRE and NRO accounts.
Documents Required
To open an RD a/c, you need to submit any of the following documents as mentioned below:
1. Proof of identity
2. Proof of Address
How to open an RD account in SBI?
RD account in SBI Bank opening process is simple and easy. There are two ways of opening a recurring account in SBI – offline and online.
How to open SBI RD account offline?
Visit the nearest SBI branch and provide the required documents to open a recurring account in SBI. Fill up the SBI RD opening form and you will be notified once your account is activated.
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How to open SBI RD account online?
With the digitalization of banks and the invention of net banking, it has become a matter of few clicks to SBI RD account open online. To open this account online, follow these steps.
1. Open the official website https://sbi.co.in/web/personal-banking/home
2. Click on Net banking at the right corner.
3. Click on Login under the Personal Banking section.
4. Login with the username, password, and captcha code.
5. Go to the Open RD account option.
6. Fill up the SBI RD account opening form.
7. Click on the “Submit” tab.
8. This may follow with an OTP verification on your registered mobile number.
9. The deposit will be deducted directly from your SBI saving account.
10. You may choose whether the deposit will be directly debited from your linked account or you will deposit manually using net banking.
11. In the case of an automated deposit, you will have to select a date for debiting the amount from your linked savings account.
12. You can check the SBI RD account details through Net Banking. This is how to open RD account in SBI online.
Note: You can open a recurring account in SBI if only you are an existing customer. If you are not an SBI account holder, you will have to open new savings account at any SBI branch. You will receive your Net Banking UserID after becoming an existing SBI account holder..
How to close RD account in SBI?
You can close your account by visiting the nearest SBI branch or if you are looking for answers, “how to close SBI RD account online?”, here it is.
1. Log in to your account as described earlier.
2. Go to e-RD or e-flexiRD (as per your account type).
3. Click on the “Close A/c” option.
4. Go through the regular OTP verification.
5. The RD balance or maturity amount will be credited to your linked SBI saving account.
Premature Withdrawal Rules
SBI Bank allows you to withdraw your RD money prematurely. Note that you have to pay a nominal penalty if you withdraw the money before maturity. However, partial withdrawals are not allowed.
What happens in case of premature withdrawal?
You may withdraw your RD balance prematurely at a cost of the nominal penalty. Therefore, in case of premature withdrawal, you will receive the RD balance deducting the penalty.
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Frequently Asked Questions
1. What is RD account in SBI?
This account allows you the flexibility to make regular deposits and earn decent returns on the investment. SBI recurring deposit scheme provides higher returns than other savings schemes as the interest rate on these deposits is similar to that of FDs.
2. Can I open SBI Rd account online?
Yes, you can conveniently open an RD account in SBI online using the SBI web portal. For this, you need to have a net banking user name and password, and an account mapped to the username. SBI Bank offers one of the best recurring deposit schemes in the market.
3. Using what accounts can I open a recurring a/c?
You can use any savings or current account for opening your recurring a/c.
4. What is the minimum amount for a recurring a/c?
Rs.100 is the minimum amount of monthly installment. Note that you cannot change the number of installments and the amount of installments after the opening of the account.
5. What is the minimum and maximum tenure for an online recurring a/c?
The tenure shall be minimum of 12 months and a maximum of 120 months for an online recurring a/c.
6. What is the benefit of RD in SBI?
SBI RD benefits are Interest rates similar to that of fixed deposits. The minimum deposit amount is Rs.100/- per month. Senior citizens will get a 0.5% additional interest rate over that applicable to general citizens.
7. What is the interest rate of SBI RD account?
At present, SBI RD interest rates 2021 range from 5% to 5.40% for deposits less than 2 crores. Senior citizens receive an additional 0.5% on SBI recurring deposit interest rate. At maturity, you will receive the investment amount and interest.
8. Will the interest rate applicable on my RD change each time the bank revises the rate?
No, it will not change every time the bank revises its rates. Note that once you open an account, the interest rate will remain the same for the entire tenure.
Final Thoughts
State Bank of India is a leading Indian bank you can easily check SBI recurring deposit interest rate today online without much hassle. Through this article, we have tried to cover all the aspects of the SBI RD account so that you can make an informed decision to save your earnings systematically for achieving your financial goals.
Note: This post was originally published on April 16, 2021 and has been completely updated for accuracy and comprehensiveness.
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