This post covers SBI Recurring Deposit Interest Rates, features, maturity amount along with other details. Recurring Deposit is a good way to accumulate money for any goal in safe and consistent manner. You deposit a fixed amount every month and at the end of it – on maturity you get your principal and accumulated interest.
SBI Recurring Deposit Interest Rates has been last revised on 8th January 2021. General Public can get 3.90% – 5.40% while senior citizens get 4.40% – 6.20% depending on the tenure of deposit. The table below gives the details.
The table below shows SBI Recurring Deposit Interest Rates & the maturity value for Rs 1,000 monthly deposit for general public and senior citizens for 1 to 10 years.
The interest on SBI Recurring Deposit is compounded quarterly and is computed using the formula below.
M=R[(1+i) (n-1)]/1-(1+i)(-1/3))
Where, M = Maturity value
R = Monthly Instalment [60 for Post office RD]
N = number of quarters (tenure) [20 for Post office RD]
i = Rate of interest/400
SBI Recurring Deposit suits someone with consistent regular income (like salary) and would like to accumulate certain amount for a goal without taking much investment risk. An example could be if you want to buy car in next 2 years, you can easily open a RD account with any leading bank and start saving. If you deposit Rs 5,000 every month for 2 years at 7%, you would get about Rs 1,29,000 at maturity. This would be good for downpayment of the car.
It’s also for someone who may not have lump sum amount available for fixed deposit but would like to lock prevailing higher interest rate for long period of time. An example situation is – In March 2013 SBI was offering 9% interest rate on their recurring deposits for 10 years. I had opened a RD with Rs 5,000 just to lock a high interest rate for 10 years. On maturity I would get about Rs 9.7 lakhs – which is good accumulated amount. As of today SBI is offering 5.4%. So I have a good investment. It’s always good idea to lock when interest rate cycle reverses and it goes high.
Whenever a depositor fails to pay the instalment on due date for three consecutive months a service charge of Rs 10/- is applicable. Penalty in case of delay in payment of instalment of RD of 5 years or less shall be Rs 1.50 for every Rs 100 per month and Rs 2.00 for every Rs. 100 per month for the account on more than 5 years. For example, if you deposited Rs 1,000 every month in SBI RD for less than 5 years maturity – If you miss payment for 1 month, you will need to deposit that instalment next month with Rs 15 as penalty (1.5 * 1000/100). If the same RD was for more than 5 years tenure, your fine would be Rs 20.
In case there is no instalment payment for six consecutive months, the SBI recurring deposit account would be closed and the available balance would be paid back to the linked account.
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Sir I want to invest rd 2000 per month for 15 years in a sip plan.can you suggest a best plan and way to invest.approximately how much I 'll get get in maturity....Pls ans......
SIP and Recurring deposits are two different things. You can do SIP in Mutual Funds while RD is done with banks. If you are looking for 15 years investment horizon, I would recommend equity or balanced mutual fund. On an average you can expect 10 - 12% annualized returns but remember the returns are volatile. You can gain 50% in one year while loose 30% in another. But historically speaking, Indian broader market indices (SENSEX/NIFTY) have never given negative returns for period of more than 10 years.
Thanks amit for quick reply.I m a housewife and interested in sip.Pls advice me how and where to start.can I invest 'rs 2000 per month....Pls make me know the safest process with low to medium risk
Dear Sir,
i would like to Deposit 2lakh as mis policy, how much i will get interest every month? please tell me.
sir i diposit 10000 per month from july 2015 for 2 years.after 2 years how much i get
At 8% interest rate you would get Rs 2.61 lakhs after 24 months
Mahesh S,
dear sir every month Rs, 4000.00 will pay the RD account, after 2year how much will get.
At 7.5% interest, recurring deposit of Rs 4000 per month for 2 years would give you about Rs 1,03,820
Hi Amit ,
If am opting RD for 1 year & amount is 10 k/month & after 6 month only 60 K has been deposited but now i want to withdraw 60 K , so how much i will get ?? more than 60k or less than 60k ??
In case of pre-mature withdrawal in case of Recurring Deposit in SBI, you will get 1.00% below the rate applicable for the period the deposit has remained with the bank. So for example SBI offers 6% for 6 months deposit, you will get interest of (6%-1%) i.e. 5% on your RD.
So in your case you will definitely get more than Rs 60K.
Dear sir,
I am depositing Rs : 6000 per month My RD 3 Years the final amount what should i get .
At 8.5% interest you would get about Rs 2.5 lakhs at the end of 3 years on RD of Rs 6,000 per month.
I have one RD account I deposit its installment from my salary account deduction but now salary has not been deposited so i have to fail deposit my current month installment. what will happen sir
Depending on the terms and conditions of the bank, there would be nominal fine. You should deposit this missed installment along with the fine as soon as possible.
I opened an Rd this month on 19-08-2015. if the due date for my next installment is 19-09-2015, then what would be my payment start date? Meaning earliest by when can I deposit the amount so that it will be considered for next installment?
I am not sure about this, so you will need to confirm with the bank. But according to me deposit made after the installment date (in your case after 19-08-2015) should be considered as your next installment.
The ideal process should be to set up auto-debit for Recurring Deposit. In this you would not have to worry about RD installment date and missing payments.
Sudam
Sir pleases tell me now this month i start RD account… when i m having saving account in SBI……. & pls tell me how much interest i will get on RD of 25000 per month for 1 year.(or on maturity)
You will get 7.75% interest rate (non-senior citizen). So on Rs 25,000 RD per month your maturity value after 1 year would be Rs 3,12,800 and the interest gained would be Rs 12,800.
Can i close my rd account in sbi without completing my 1 year. i deposit the money for 4 months
Yes you can with applicable penalty if any