Interest rate under the SBI Recurring Deposit (RD) Scheme
The interest rate under an RD regime is the same as that applicable to term deposits for the public and the elderly.
|Duration of deposit||Interest rate (PA) for the public||Interest rate (PA) for seniors|
|1 year to less than 2 years||5.00%||5.50%|
|2 years to less than 3 years||5.10%||5.60%|
|3 years to less than 5 years||5.30%||5.80%|
|5 years to 10 years||5.40%||6.20%|
A recurring deposit (RD) is certainly qualitatively different from FD, with regard to the flexibility of an RD. In any FD scheme, you have to deposit the money at the post office or at a bank, once in a lump sum. But under an RD plan at any bank, you can invest a fixed amount monthly to earn good interest on the amount.
Duration of deposit and amount of deposit
In SBI you can choose the duration of your deposit or the deposit period from a minimum of 12 months to a maximum of 120 months. The minimum deposit amount under the recurring deposit (RD) is Rs. 100 per month which will be multiplied by Rs. 10, for further investments further. However, there is no upper limit or fixed maximum deposit amount for the program. After your RD plan matures, you will receive a lump sum – that is, regular investments plus interest earned. Therefore, a RD is a good systematic savings-investment instrument for citizens. With the possibility of regular deposit and good interest rates, DRs will give you flexibility and ease of investment.
If you do not deposit the monthly payment under the program, the SBI will charge a penalty on your investment. For accounts with a maturity period of 5 years and less, your penalty will be Rs. 1.50 per Rs. 100 per month. For accounts with a maturity period greater than 5 years, your penalty will be Rs. 2.00 per Rs. 100 per month. SBI takes an âAA service chargeâ of Rs. 10 on recurring deposit (RD) accounts paid on or after the due date, in which there is a default of 3 or more consecutive installments and the account n has not been regularized. Your account will be permanently closed if you do not pay the monthly payment for 6 consecutive periods. In this case, your balance will be paid to you.