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 am senior citizen,at present operating RD account no 34011224143 w.e.f 02-08-2014 maturity date 02-09-2015 @ Rs 8,000/- for 13 month,please calculate maturity amount.
My next RD investment @ Rs 12,000/- for 14 months w.e.f Oct 2015,please suggest any substitute for investment.
Thanks
op srivastava
As you have not mentioned the interest rate I cannot calculate the maturity amount. The alternative investment options can be SIP in mutual funds or NCDs. But then it depends on a lot of factors like - Whats your returns expectation, the risk you want to take, how you would use the money, etc
Amit pls tell me that how can i start RD account... when i m having saving account in SBI....... & pls tell me how much interest i will get on RD of 2000 per month for 1 year.(or on maturity)
You can start RD account either online or visiting your bank branch. At 8.5% interest rate and depositing Rs 2,000 per month you would get Rs 25,127 on maturity
Rs 3000 which I planning to invest in a RD account in SBI how much amount do I get at the end of the year? Any other bank give more tnterst rate than SBI
You can view the latest RD rates across banks by Clicking here
nice information sir.. sir mujhe ek bat puchni thi apse. jaise k agar main 100 repee se sbi rd start karta hun to kya mujhe sir 100 he dene honge per month. kya mai 500 ya kabi kabhi 1000 bhi invest kar sakta hun bich bich mai. to mujhe kis hisab se interest milega. pls advise.
In most cases banks allow a fixed amount for the entire tenure. However there are products from different banks where you have option to invest flexible amount every month.
iWish flexible RD from ICICI bank is one such product. You might want to look other bank's website to find out more
i have invested in non convertible secured bond ( kosamattam) for 3 year, and it is in demat form, if I want to sell what is the procedure, it is listed in BSE. another information required is , if I started invested in mutual fund say for 3 or more years, do I need to change the fund by checking their performance because I am not a expert or stay invested in the same fund and wait till the end of the period
You need to follow the same process for selling a NCD as you do for shares in demat account.
If you think you are not able to select the right mutual funds you should consult financial advisers. B'coz if you are able to select your first set of mutual funds for investment yourself, you can also track it and change it if required. If not I strongly suggest you consult an expert!
Hi,
Can you pls suggest me few mutual fund(sip).i want to invest it for 5year.monthly around 5k.pls suggest with approx return value.
how to calculate RATE OF INTEREST of recurring deposit.
Suppose I’m investing 2500 per month in recurring deposit account for 2 years with rate of interest 8% compounded quarterly. Now I have to find out MATURITY AMOUNT. For this i will use formula :
ACTUAL AMOUNT (MATURITY AMOUNT) = PRINCIPLE AMOUNT *( (1+RATE/100/4)^(4*2)-1)/(1-(1+RATE/100/4)^(-1/3))
ACTUAL AMOUNT (MATURITY AMOUNT) = PRINCIPLE AMOUNT *( (1+8/100/4)^(4*2)-1)/(1-(1+8/100/4)^(-1/3))
ACTUAL AMOUNT (MATURITY AMOUNT) = 65229/-
========================
Now I want to know the FORMULA OF HOW TO CALCULATE RATE OF INTEREST.
Suppose I’m investing 2500 per month in recurring deposit account interest compounded quarterly. My MATURITY AMOUNT IS 65229/-.
But i don’t know what INTEREST RATE I HAVE GOT. I want to find out INTEREST RATE . WHAT FORMULA SHOULD I USE TO FIND OUT RATE OF INTEREST
PLEASE REPLY.
Hi Amit,
I am @ initial stage of plan for investment so Can u plz suggest me for better RD option between SBI & POST Office...........also as per interest rate.
and why????
Thnks,
Vaibhav
RD in banks are more convenient and easy to operate. You can start RD anytime through internet banking, also cancellation is not difficult. In most cases Post office Accounts are still not online. So you will need to visit them for any transaction. Moreover at present Post Offices offer 8.4% interest which is competitive with Banks.
I want to invest 30000/month for one year for recurring deposit scheme.. how much I will get after one year..
any one please tell me...
You would get Rs 3.77 lakhs at the end of year; if you invest Rs 30,000 per month in SBI RD.
I m married and i have 3year old boy. I want to open rd A/c which bank can give me more rate of interest icici or sbi? Plz replyyyýy
ICICI bank offers higher interest than SBI on RD