SBI Recurring Deposit, SBI RD Account, State Bank of India recurring deposit scheme

SBI Recurring Deposit (SBI RD Account)

SBI Recurring Deposit provides a person an opportunity to build up saving through regular monthly deposit of fixed sum over a period of time. You can also open SBI RD account online in SBI through e-RD feature in SBI internet banking.

Features of the scheme SBI Recurring Deposit 

1. Minimum monthly deposits of Rs.100 and in multiples of Rs.10. No maximum limit.

2. Minimum period 12 months and maximum period 120 months.

3. The amount of installment and number of installment cannot be changed after opening of the account.

4. Loan / Overdraft up to 90% available against the balance in the account, at 0.5% p.a. above the rate of deposit.

5. Nomination facility available.

6. Passbooks are provided.

7. Premature withdrawal allowed and for this, rules for TDR/STDR are applicable.

8. TDS is applicable.

9. Penalty charges for non-deposit of monthly installments on time are:

a) For a period 5 years and less - Rs. 1.50 per Rs. 100/- per month.

b) For a period above 5 years - Rs. 2.00 per Rs. 100/- per month.

SBI RD Account through e-RD feature in SBI Internet Banking

You can also open SBI RD account online in SBI through e-RD feature in SBI internet banking. e-RD can be created online from 8:00 AM to 8:00 PM. Requests initiated after this period will be scheduled for the next opening hours.

Can one close SBI RD account online?

You can close your SBI RD account online through "Close A/c" tab under e-RD if you have opened your account through e-RD. The account opened through any other modes cannot be closed through "Close a/c" tab under e-RD.

Interest Rate on SBI Recurring Deposit 

The interest rates vary from time to time and are applicable as per the Bank’s TDR / STDR for the period of the RD. You can view updated information on interest rates on SBI web portal. You can view the current interest rates applicable on SBI RD account by clicking on "View current interest rate" link provided in e-RD request page. Senior citizens (Customers with age greater than 60 years are Senior Citizens) get additional 0.5% interest rate.

Revision in interest rates w.e.f. 01.10.2017. The revised rates are as under.

How is maturity amount calculated?

The maturity amount of SBI RD Account is calculated on the bases of installment, tenure & type of a/c selected by you. The maturity amount of your account is rounded off to the nearest rupee and paid on the expiry of the selected period or after 30 days /one month deposit of the last installment. You can also enquire about the RD maturity amount, maturity date and rate of interest, without opening e-RD through “Enquiry” tab available in e-RD page.

Charges for pre-mature closure of SBI RD Account

Interest at 1.00% below the interest rate applicable for the period the deposit has remained with the bank will be applied on premature closure of the account.

Hope the above article will help you in understanding the SBI Recurring Deposit scheme.

Note: This post was originally published in June 2016 and now has been completely updated for accuracy and comprehensiveness.

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