The Recurring Deposit scheme offers a chance to accumulate savings by making regular monthly deposits of a fixed amount over a certain period. This allows individuals to have enough funds to meet specific financial goals at the end of the designated period. SBI provides attractive interest rates for its Recurring Deposit accounts, making it a viable choice of investment. You can also use the RD Calculator to estimate the maturity amount based on the current interest rates.
Interest earned on recurring deposit accounts is liable for tax deduction at source (TDS). If your annual interest income from RD accounts across branches exceeds ₹40,000 per financial year, the bank will apply TDS. The limit for senior citizens is ₹50,000 per financial year.
SBI RD Interest Rates 2024
The following are the revised SBI RD interest rates for the year 2024 below ₹2 Crore:
| Tenure | RD Interest Rate (in % p.a.) for General Public |
|---|---|
| 1 Year to < 2 years | 6.80% |
| 2 years to < 3 years | 7.00% |
| 3 years to < 5 years | 6.50% |
| 5 years and up to 10 years | 6.50% |
Benefits for the General Public:
- Flexible deposit amounts: You can start an RD account with as little as ₹100 per month.
- Loan facility: You can avail a loan against your RD account up to 90% of the deposit amount.
- Premature withdrawal: Partial or full withdrawal is allowed, subject to certain conditions.
- Overdraft facility: You can get an overdraft facility against your RD balance.
- Nomination facility: You can nominate someone to receive the RD amount in case of your demise.
| Tenure | RD Interest Rates for Senior Citizens (in % p.a.) |
|---|---|
| 1 Year to < 2 years | 7.30% |
| 2 years to < 3 years | 7.50% |
| 3 years to < 5 years | 7.00% |
| 5 years and up to 10 years | 7.00% |
Benefits for Senior Citizens (60 years and above):
- Higher interest rates: Senior citizens get 0.50% higher interest rates compared to the general public.
- Loan facility: Seniors can avail a loan up to 95% of the RD balance.
- Premature withdrawal: Seniors can withdraw their RD prematurely without any penalty charges.
- Overdraft facility: Seniors can get an overdraft facility at preferential rates.
- Nomination facility: Same as the general public.
- Free RD account: Some branches may offer free RD accounts to senior citizens.
SBI RD Calculator
The RD (Recurring Deposit) calculator is a useful tool for individuals who want to estimate their savings or evaluate the returns on their recurring deposit investments. It makes it easy to calculate the projected maturity amount with accuracy.
| RD Maturity Date | : |
| Total Invested Amount | : ₹1,000 |
| Total Interest Earned | : ₹532 |
| Total Maturity Amount | : ₹12,532 |
Here are the steps to use the RD (Recurring Deposit) calculator:
- Step 1: Enter the deposit amount.
- Step 2: Input the RD interest rate.
- Step 3: Choose the investment tenure.
Once the details are entered, the RD Maturity & Interest Amount will be displayed.
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Features of SBI RD Interest Rate
The table below outlines the key features of the SBI RD account, offering flexible savings options and its’ availability to help you achieve your financial goals with preferred tenure.
| Feature | Description |
|---|---|
| Period of deposit | Minimum 12 months, Maximum 120 months |
| Availability | Available at all branches |
| Minimum deposit amount | ₹100 per month (and multiples of ₹10 thereafter) |
| Penalty for late payment | Yes |
| Account closure for missed installments | The account will be closed after 6 consecutive missed installments. The balance will be paid to the account holder. |
| Maturity instructions | Customers can specify maturity payout instructions, including crediting to savings/current accounts, issuing a Banker's Payment Order (IOI), or issuing a Term Deposit Receipt (STDR). |
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RD Interest Rates of Top Banks
Here is a comprehensive list of RD interest rates from top banks:
| Bank | RD Interest Rates (p.a) General Public |
RD Interest Rates (p.a) Senior Citizens |
|---|---|---|
| SBI RD Interest Rates | 6.50% to 7.00% | 7.25% to 7.50% |
| ICICI bank RD | 4.75% to 7.20% | 5.25% to 7.75% |
| HDFC Bank RD | 4.50% to 7.25% | 5.00% to 7.75% |
| Kotak Mahindra Bank RD | 6.00% to 7.40% | 6.50% to 7.90% |
| Axis Bank RD | 5.75% to 7.20% | 6.25% to 7.85% |
| Bank of Baroda RD | 5.75% to 7.25% | 6.25% to 7.75% |
| Punjab National Bank RD | 6.00% to 7.25% | 6.50% to 7.75% |
| IDBI Bank RD | 6.25% to 7.00% | 6.75% to 7.50% |
| Canara Bank RD | 6.15% to 7.25% | 6.65% to 7.75% |
| Indian Bank RD | 4.50% to 7.25% | 5.00% to 7.75% |
| Indian Overseas Bank RD | 5.75% to 7.30% | 6.25% to 7.80% |
| Union Bank of India RD | 5.75% to 6.50% | 6.25% to 7.00% |
| Yes Bank RD | 6.10% to 7.75% | 6.60% to 8.25% |
| Bandhan Bank RD | 4.50% to 7.85% | 5.25% to 8.35% |
| Bank of India RD | 4.50% to 6.00% | 5.00% to 6.50% |
| Bank of Maharashtra RD | 5.50% to 6.25% | 6.00% to 6.75% |
| City Union Bank RD | 6.25% to 7.00% | 6.50% to 7.50% |
| DBS Bank RD | 6.00% to 7.50% | 6.50% to 8.00% |
| Dhanalakshmi Bank RD | 6.50% to 7.25% | 6.50% to 7.75% |
| Federal Bank RD | 5.75% to 7.50% | 6.25% to 8.00% |
| IndusInd Bank RD | 7.00% to 7.75% | 7.50% to 8.25% |
| Jammu and Kashmir Bank RD | 5.75% to 7.10% | 6.25% to 7.60% |
| Karnataka Bank RD | 5.80% to 7.40% | 6.20% to 7.90% |
| Karur Vysya Bank RD | 6.25% to 7.50% | 6.25% to 8.00% |
| Post Office RD | 6.50% | 6.50% |
| Saraswat Bank RD | 7.00% to 7.50% | 7.50% to 8.00% |
| South Indian Bank RD | 5.00% to 7.40% | 5.50% to 7.90% |
| TMB RD | 6.75% to 7.75% | 7.00% to 8.25% |
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Note: The interest rates are subject to change. Do visit the official website for updated rates.Besides banks, you can also invest in Post Office RD and calculate the return with a post office RD calculator.
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SBI RD Interest Calculation
To determine the interest amount of your RDs, you can use an online RD calculator or calculate it manually. The mathematical formula for this computation is presented below:
M = R[(1+i)^n-1]/(1-(1+i)^(-1/3))
Here,
M = Maturity Value
R = Monthly Installment
n = Number of quarters
I = Rate of interest
Example:
Let’s assume a monthly recurring deposit of ₹1,000 for 5 years at 7.5% interest p.a. compounded quarterly.
Here's the calculation for the interest you will earn at maturity:
Given:
Monthly deposit (R) = ₹1,000
Deposit period (n) = 5 years * 4 quarters/year = 20 quarters
Interest rate (i) = 7.5% p.a. = 7.5 / 100 = 0.075 (converted to decimal)
Using the compound interest formula:
M = R [(1 + i)^n - 1] / (1 - (1 + i)^(-1/3))
Calculating the maturity value (M):
M = 1000 * [(1 + 0.075)^20 - 1] / [ 1 - (1 + 0.075)^(-1/3) ]
M = ₹1,36,357
Total deposit:
Total deposit = Monthly deposit * Number of deposits
Total deposit = ₹1,000/month * 20 quarters = ₹20,000
Interest earned:
Interest = Maturity value - Total deposit
Interest = ₹136,357.55 - ₹20,000
Interest = ₹116,357.55
Therefore, with a 7.5% interest rate p.a., you would earn approximately ₹116,357.55 in interest over the 5 years.
Types of SBI RD Schemes
SBI offers a diverse range of Recurring Deposit (RD) accounts for varying financial needs. Here are the different types of SBI RD accounts:
SBI Recurring Deposit:
- Enables customers to accumulate savings through monthly recurring payments for a pre-determined time
- No maximum deposit amount limit
- Customers will earn a set interest on maturity
SBI Flexi Deposit:
- Allows deposit of variable recurring deposits rather than a fixed installment
- RD Tenure Limit: 5 – 7 years
- RD Amount Limit: ₹5,000 – ₹50,000 annually
- Minimum Amount of 1st Instalment: ₹500
- Payment Frequency: Any Day/Month/Any No. of Times
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Tax on SBI RD Interest Rates
Recurring deposit accounts with SBI are subject to tax deducted at source (TDS). The TDS is based on the Customer Information File (CIF) value, and the exact amount cannot be ascertained beforehand for the SBI Holiday Saving Account. Here is what you need to know:
- If your annual interest income from FD and RD accounts across branches exceeds ₹40,000, the bank will apply TDS.
- For senior citizens, the limit is ₹50,000 per financial year before TDS is applied.
- You can submit Form 15G/15H to request the bank not to deduct tax at source if your annual income does not exceed the basic exemption limit.
- If TDS is applicable, it will be processed according to the income tax rules.
Steps to Open SBI RD Account
You can open an SBI RD account both online and offline. Follow the steps mentioned below to open an SBI Recurring Deposit Account:
Offline Mode to Open SBI RD Account
Step 1: Visit the nearby SBI Bank and fill up the RD application form.
Step 2: Submit all relevant documents of the accountholder and the nominee.
Step 3: The RD Account gets opened upon successful payment of the 1st installment and submission of the form.
Open SBI RD Account Online
Step 1: Log in to your personal SBI net banking account.
Step 2: Select the “Fixed Deposit” option and choose “e-RD/ e-SBI Flexi Deposit”.
Step 3: As the “e-RD” option is automatically selected, click on “Proceed”.
Step 4: Enter the required details and review the form in the Preview receipt.
Step 5: Click on “Confirm” and save the final receipt for future reference.
Eligibility Criteria to Open SBI RD Account
To open a Recurring Deposit (RD) with SBI, the customers must meet the following eligibility criteria:
- Hindu Undivided Family (HUF)
- Indian Citizens
- Individuals must already hold a Savings Account with SBI
- Must have a steady source of income
- NRO/NRE accounts are also permitted for NRIs to open an RD account
Documents Required For SBI RD Account
If you wish to open an SBI RD account, make sure to have the following documents ready:
- Aadhar Card
- Voter ID
- PAN Card
- Senior Citizen ID
- Ration Card
- Driving License
- Utility Bills
- Bank Account Details
SBI RD Premature Withdrawal
SBI allows its customers to make premature withdrawals of their RD money. There will be a nominal penalty if the money is withdrawn before maturity. However, SBI does not permit partial withdrawals of recurring deposits.
Steps to Close SBI RD Account Online
To close your State Bank of India (SBI) RD account online, follow these steps:
Step 1: Log in to your net banking account using your User ID and password on SBI's official website.
Step 2: Click on 'e-TDR/e-STDR (FD)' under 'Fixed Deposit'.
Step 3: Select e-RD (Recurring Deposit) from the 'kind of deposit account' drop-down menu and click 'Proceed.'
Step 4: A new page will appear, showing various services related to your RD account. Click 'Close A/c' and then 'Proceed.'
Step 5: Your RD information will be displayed. Enter 'Close RD account' in the 'Remarks' field and click 'Proceed.'
Step 6: Enter the 'High-Security Password' and click the 'Confirm' button.
Step 7: You will receive confirmation that your RD account has been closed.
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Frequently Asked Questions
Yes, the interest rates on SBI Recurring Deposits are different from the interest rates on SBI Fixed Deposits (FDs).
No, the minimum tenure for an SBI Recurring Deposit is 1 year. 6-month RDs are not offered.
Yes, the interest earned on an SBI Recurring Deposit is taxable as per the applicable income tax laws.
Yes, the customer can convert the matured RD amount into an SBI Fixed Deposit.
The minimum deposit amount required to open an SBI Recurring Deposit account is ₹100 per month.
Yes, premature withdrawal is allowed from an SBI Recurring Deposit account, but it may attract a penalty.
Yes, there is a penalty for missed RD installment payments. The penalty is charged as per the bank's prevailing policies.
The interest on SBI Recurring Deposits is calculated every quarter and credited to the account accordingly.
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