SBI Recurring Deposit Interest- 2024
Introduction:
The State Bank of India presents a diverse array of deposit schemes catering to both short and long-term investment needs of individuals. As the largest bank in India, SBI's schemes boast decades of delivering commendable returns and performance, earning them the trust of consumers.
SBI offers appealing RD interest rates to its customers, with a minimum deposit requirement starting from just Rs. 100. Customers can open an RD account for a duration ranging from 7 days to 10 years, aligning with their financial objectives.
For deposits below Rs. 2 crores, SBI provides RD interest rates at 5.00% to 5.40%. Additionally, senior citizens receive an extra interest rate of 0.50% on the standard interest rates.
The State Bank of India presents a diverse array of deposit schemes catering to both short and long-term investment needs of individuals. As the largest bank in India, SBI's schemes boast decades of delivering commendable returns and performance, earning them the trust of consumers.
SBI offers appealing RD interest rates to its customers, with a minimum deposit requirement starting from just Rs. 100. Customers can open an RD account for a duration ranging from 7 days to 10 years, aligning with their financial objectives.
For deposits below Rs. 2 crores, SBI provides RD interest rates at 5.00% to 5.40%. Additionally, senior citizens receive an extra interest rate of 0.50% on the standard interest rates.
Features of SBI Recurring Deposit Interest Rates 2024
To initiate an SBI RD account, a minimum deposit of Rs. 100 is required (for higher amounts, deposits should be made in multiples of Rs. 10).
The tenure of an RD account with SBI spans from 1 year to 10 years.
Senior citizens are entitled to an additional interest rate of 0.50% above the standard rate offered to general citizens.
A nomination facility is provided, allowing individuals to designate a nominee to receive the maturity amount.
SBI offers the option to secure loans against deposited sums, with borrowers eligible to obtain up to 90% of the RD balance as the loan amount.
TDS deduction on RD is applicable, subject to prevailing income tax regulations at the time of account opening.
In the event of delayed payments, the bank imposes penalties as follows:
For tenures of up to 5 years or less: Rs. 1.50 for every Rs. 100 per month.
For tenures exceeding 5 years: Rs. 2 for every Rs. 100 per month.
To initiate an SBI RD account, a minimum deposit of Rs. 100 is required (for higher amounts, deposits should be made in multiples of Rs. 10).
The tenure of an RD account with SBI spans from 1 year to 10 years.
Senior citizens are entitled to an additional interest rate of 0.50% above the standard rate offered to general citizens.
A nomination facility is provided, allowing individuals to designate a nominee to receive the maturity amount.
SBI offers the option to secure loans against deposited sums, with borrowers eligible to obtain up to 90% of the RD balance as the loan amount.
TDS deduction on RD is applicable, subject to prevailing income tax regulations at the time of account opening.
In the event of delayed payments, the bank imposes penalties as follows:
For tenures of up to 5 years or less: Rs. 1.50 for every Rs. 100 per month.
For tenures exceeding 5 years: Rs. 2 for every Rs. 100 per month.
Recurring Deposit Interest Rates - 2024
Banks
Interest
Rates (PA)
Interest
Rates (PA)
Interest Rate
for Seniors (PA)
Interest Rate
for Seniors (PA)
Bandhan Bank RD Interest Rate
Bandhan Bank RD
Interest Rate
3.0% - 7.25%
3.5% - 7.75%
₹15,000
Kotak Mahindra Bank RD Interest Rate
Kotak Mahindra
Bank RD Interest Rate
Kotak Mahindra Bank RD
Interest Rate
4.0% - 7.25%
4.0% - 7.25%
4.0% - 7.75%
IDFC First Bank Rd Interest Rate
Central Bank
of India
3.5% - 7.0%
3.5% - 7.0%
4.0% - 7.5%
YES Bank RD Interest Rate
YES Bank RD
Interest Rate
7.45% - 7.75%
7.95% - 8.25%
RBL Bank RD Interest Rate
RBL Bank RD
Interest Rate
3.0% - 7.25%
3.0% - 7.25%
3.5% - 7.75%
Eligibility Criteria
Eligibility Requirements for Initiating an RD Account with SBI:
To commence an RD with SBI Bank, individuals must meet the following eligibility criteria:
Only Indian residents or Hindu Undivided Family members are eligible to open a recurring deposit account.
Non-Residential Indians can also establish an RD account with SBI, provided they apply for a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account.
For minors, an RD account can be initiated under the supervision of their legal guardians, ensuring that their financial affairs are managed responsibly.
Eligibility Requirements for Initiating an RD Account with SBI:
To commence an RD with SBI Bank, individuals must meet the following eligibility criteria:
Only Indian residents or Hindu Undivided Family members are eligible to open a recurring deposit account.
Non-Residential Indians can also establish an RD account with SBI, provided they apply for a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account.
For minors, an RD account can be initiated under the supervision of their legal guardians, ensuring that their financial affairs are managed responsibly.
Eligibility Requirements for Initiating an RD Account with SBI:
To commence an RD with SBI Bank, individuals must meet the following eligibility criteria:
Only Indian residents or Hindu Undivided Family members are eligible to open a recurring deposit account.
Non-Residential Indians can also establish an RD account with SBI, provided they apply for a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account.
For minors, an RD account can be initiated under the supervision of their legal guardians, ensuring that their financial affairs are managed responsibly.
Documents Required
To initiate an SBI RD account, you need to furnish any of the following documents as listed below:
Identity Verification:
Voter ID card or Aadhaar card
PAN card
Government ID card
Ration card
Senior citizen ID card
Address Verification:
Passport
Telephone or electricity bill
Bank account statements with a cheque
Certificate or ID card issued by the post office
To initiate an SBI RD account, you need to furnish any of the following documents as listed below:
Identity Verification:
Voter ID card or Aadhaar card
PAN card
Government ID card
Ration card
Senior citizen ID card
Address Verification:
Passport
Telephone or electricity bill
Bank account statements with a cheque
Certificate or ID card issued by the post office
To initiate an SBI RD account, you need to furnish any of the following documents as listed below:
Identity Verification:
Voter ID card or Aadhaar card
PAN card
Government ID card
Ration card
Senior citizen ID card
Address Verification:
Passport
Telephone or electricity bill
Bank account statements with a cheque
Certificate or ID card issued by the post office
Types of SBI Recurring Deposit Schemes
Currently, SBI offers three varieties of recurring deposits: the regular recurring deposit, the SBI holiday savings account, and the SBI Flexi Deposit Scheme. Let's delve into each one:
SBI Regular Recurring Deposit:
This is the fundamental and most popular recurring deposit account provided by the bank. It can be initiated with a minimum monthly deposit of Rs. 100 or more, with flexible tenures ranging from 1 year to 10 years.
SBI Holiday Savings Account:
Tailored for travel enthusiasts, this savings scheme allows individuals to save for a travel package offered by Thomas Cook. Upon selecting a Thomas Cook Holiday savings account package while traveling, the total amount is divided into 13 EMIs. These EMIs are then deposited into the SBI Holiday Savings Account over a span of 12 months, with Thomas Cook providing the 13th EMI after applying the relevant interest rate.
SBI Flexi Deposit Scheme:
This scheme provides flexibility in deposit amounts, allowing individuals to alter the deposit amount each month instead of adhering to a fixed sum. A minimum annual deposit of Rs. 5000 is required, capped at Rs. 50,000 annually. Deposits can be made for periods ranging from 5 to 7 years.
Currently, SBI offers three varieties of recurring deposits: the regular recurring deposit, the SBI holiday savings account, and the SBI Flexi Deposit Scheme. Let's delve into each one:
SBI Regular Recurring Deposit:
This is the fundamental and most popular recurring deposit account provided by the bank. It can be initiated with a minimum monthly deposit of Rs. 100 or more, with flexible tenures ranging from 1 year to 10 years.
SBI Holiday Savings Account:
Tailored for travel enthusiasts, this savings scheme allows individuals to save for a travel package offered by Thomas Cook. Upon selecting a Thomas Cook Holiday savings account package while traveling, the total amount is divided into 13 EMIs. These EMIs are then deposited into the SBI Holiday Savings Account over a span of 12 months, with Thomas Cook providing the 13th EMI after applying the relevant interest rate.
SBI Flexi Deposit Scheme:
This scheme provides flexibility in deposit amounts, allowing individuals to alter the deposit amount each month instead of adhering to a fixed sum. A minimum annual deposit of Rs. 5000 is required, capped at Rs. 50,000 annually. Deposits can be made for periods ranging from 5 to 7 years.
SBI Bank RD Premature Withdrawal Facility
SBI provides the option for its customers to prematurely withdraw funds from their RD account. Withdrawal before maturity incurs a nominal penalty. However, partial withdrawals from recurring deposits are not permitted by SBI.
To Close SBI RD Account Online:
Log in to your net banking account using your User ID and password on SBI's official website.
Navigate to 'e-TDR/e-STDR (FD)' under 'Fixed Deposit'.
Select e-RD (Recurring Deposit) from the 'kind of deposit account' drop-down menu and click 'Proceed.'
A new page will appear, showing various services related to your RD account. Click 'Close A/c' and then 'Proceed.'
Your RD account details will be displayed. Enter 'Close RD account' in the 'Remarks' field and click 'Proceed.'
Input the 'High-Security Password' and click 'Confirm.'
You will receive confirmation that your RD account has been successfully closed.
SBI provides the option for its customers to prematurely withdraw funds from their RD account. Withdrawal before maturity incurs a nominal penalty. However, partial withdrawals from recurring deposits are not permitted by SBI.
To Close SBI RD Account Online:
Log in to your net banking account using your User ID and password on SBI's official website.
Navigate to 'e-TDR/e-STDR (FD)' under 'Fixed Deposit'.
Select e-RD (Recurring Deposit) from the 'kind of deposit account' drop-down menu and click 'Proceed.'
A new page will appear, showing various services related to your RD account. Click 'Close A/c' and then 'Proceed.'
Your RD account details will be displayed. Enter 'Close RD account' in the 'Remarks' field and click 'Proceed.'
Input the 'High-Security Password' and click 'Confirm.'
You will receive confirmation that your RD account has been successfully closed.
Tax Exemptions on SBI RD
Tax deductions at source (TDS) are applicable to recurring deposit accounts. The deduction amount is determined based on the Customer Information File (CIF) value. However, for the SBI Holiday Saving Account, the deduction amount cannot be determined in advance.
In general, if your annual interest income from FD and RD accounts across all branches exceeds Rs. 40,000 per financial year, the bank will apply TDS. For senior citizens, this threshold is Rs. 50,000 per financial year.
If your annual income does not surpass the basic exemption limit, you can submit Form 15G/15H to request the bank not to apply TDS. Otherwise, TDS will be implemented according to the income tax regulations.
Tax deductions at source (TDS) are applicable to recurring deposit accounts. The deduction amount is determined based on the Customer Information File (CIF) value. However, for the SBI Holiday Saving Account, the deduction amount cannot be determined in advance.
In general, if your annual interest income from FD and RD accounts across all branches exceeds Rs. 40,000 per financial year, the bank will apply TDS. For senior citizens, this threshold is Rs. 50,000 per financial year.
If your annual income does not surpass the basic exemption limit, you can submit Form 15G/15H to request the bank not to apply TDS. Otherwise, TDS will be implemented according to the income tax regulations.
How to Open a Recurring Deposit Account in SBI?
There are two methods to initiate a recurring deposit account with SBI:
Visit the nearest SBI branch, complete an RD opening form, and furnish the necessary documents.
If you are an existing SBI customer with an active internet banking account, log in to your online account using your net banking credentials and promptly open an e-RD. However, if you do not hold an SBI account, you must first open one. Once your account is active, you can utilize the net banking facility to open an e-RD.
There are two methods to initiate a recurring deposit account with SBI:
Visit the nearest SBI branch, complete an RD opening form, and furnish the necessary documents.
If you are an existing SBI customer with an active internet banking account, log in to your online account using your net banking credentials and promptly open an e-RD. However, if you do not hold an SBI account, you must first open one. Once your account is active, you can utilize the net banking facility to open an e-RD.
How to Calculate the Maturity Amount on SBI Bank RD?
The primary objective of opening an SBI RD account is to accrue additional savings over time. The maturity amount is contingent upon various factors including the initial deposit, interest rate, RD tenure, TDS deductions, and similar variables. The simplest method to compute the interest on your recurring deposit is by utilizing an SBI RD calculator, which is readily available online.
The formula employed to determine the total accumulated amount upon maturity is A = P(1+r/n) ^ nt, where:
A represents the final amount
P denotes the principal
r signifies the annual interest rate
n indicates the frequency of interest compounding
t stands for the tenure
The primary objective of opening an SBI RD account is to accrue additional savings over time. The maturity amount is contingent upon various factors including the initial deposit, interest rate, RD tenure, TDS deductions, and similar variables. The simplest method to compute the interest on your recurring deposit is by utilizing an SBI RD calculator, which is readily available online.
The formula employed to determine the total accumulated amount upon maturity is A = P(1+r/n) ^ nt, where:
A represents the final amount
P denotes the principal
r signifies the annual interest rate
n indicates the frequency of interest compounding
t stands for the tenure
1.) How can I close my RD account?
You can close your RD account either by visiting your bank branch, using net banking, or through the bank's mobile application.
2.) Where will the closure proceeds be deposited?
The closure proceeds will be credited to the same savings bank account from which the recurring deposit payments were deducted.
3.) Is it necessary to visit the bank branch to close the RD account?
No, you can also close your RD account using net banking or the bank's mobile application.
4.) Can I close my RD account online?
Yes, you can close your RD account online through net banking or the bank's mobile application.
5.) Will I receive the closure proceeds immediately?
The closure proceeds will be deposited into your savings account, usually within a few business days after the closure request is processed.
Author
Harish Malhi
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