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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Plz suggest me which1 is best ppf or rd in sbi if you want to earn more profit.
hello sir
please guide me which scheme is better for an monthly saving 8000 rs for ten years
I can get after 8 years 10,99,408 by SBI RD but it is taxable
tell how much amount i have to pay tax after maturity other wise any other schemes is there in LIC OR post office to get same amount with tax exemption
hi amit,
U/S that in PPF A/C single person can open a single a/c;
At opening i want invest some amount arougd 50K; can i increase the amount to 1 Lak by adding extra 50K in near future;
Hi Amit,
I have been investing Rs 4000 per month in Aegon Religare and Rs 1000 in Sundram mutual fund tax saver since August 2010. the locking period was for three years which is going to end this year , in next two months.
However I can see that my total fund value and the savings till date has done no good to me. So I am not sure, if I should withdraw my amount from these investments or discontinue with installments but do not withdraw money or renew the plan and ocntinue with installments.
Also I started SBI RD Rs 10000 per month for one year last year june 2012.Could you please tell me how much amount will I get and by when
HOW CAN WE OPEN INVESTMENT IN PPF A/C IN SBI
IS RATE OF INTEREST ARE DIFFER FROM BANK TO BANK?
hi amit,
PPF means Public Provident Fund ?
HOW CAN WE MAKE INVESTMENT IN PPF OTHER THAN FROM SALARY DEDUCTION
Investment in EPF/VPF (Employee provident Fund) is done through deduction from Salary. For PPF you have to do investment yourself!
THANKS
HOW CAN WE MAKE INVESTMENT IN PPF
i am prasanta pratihar
halp me
What kind of help you are looking for ... plz write your problem!
Sir
I want to know if I deposit 9000 per month for 3 years then what amount I'll get with interest? pls tell
Assuming 7% interest rate, monthly deposit of Rs 9,000 would give Rs 3,61,244 on maturity after 3 years. The interest component would be Rs 37,244 and the principal would be Rs 3,24,000.
is ther any deposits for 15,20,25 years
Most Banks that I have checked offer Recurring Deposit for maximum tenure of 10 Years!
hello sir,
Actually, i have an sbi acount in one branch and RD account in other branch. i opened RD account on 19 may 2012 for one year. and my RD account is maturied on 19 may 2013. i think the amount will collect on my sbi account. but it was not done. how can i get the amount in my sbi account, because i am away for the branch where i had RD account.please help me.
You might try to contact the nearest SBI branch and request them to transfer the matured RD amount to your savings account.
i need some savings to be made after 15 yrs from Now.I am enrolled in LIC jeevan anand scheme. can you suggest me other options to invest where i can get good returns after 15 yrs. i can invest 80k P.A