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.

Contents

- 1 SBI Recurring Deposit Scheme – Features
- 2 SBI Recurring Deposit Interest Rates 2021
- 3 SBI Recurring Deposit Interest Rates 2021 & Maturity value
- 4 How to Calculate Maturity Amount on SBI RD
- 5 Helpful Posts on Recurring Deposits
- 6 Who should open SBI Recurring Deposit Account?
- 7 SBI RD Penalty for Default in Instalment Payment

## SBI Recurring Deposit Scheme – Features

- The
**tenure of SBI recurring deposit may be from from 12 to 120 Months**– in multiple os 3 months like 3, 6, 12, 15 months and so on. - SBI RD is available both online and in Offline mode in all branches
- Nomination facility available
- The
**minimum amount of monthly instalment shall be Rs 100**. - There is NO limit on maximum amount you can deposit in RD
- The amount of instalment and number of instalment can not be changed after opening of the account.
**Loan against**security of the balance in the Recurring Deposit accounts available to the extent of 90% of the deposit, at 0.5% p.a. above the rate of depositis deducted, if the interest income is more than Rs 40,000 in financial year**TDS (Tax deduction at source) at the rate of 10%**- Passbook Issued
- Hassle free
**premature spot payment**anytime **Senior citizens get up to additional 0.80% interest rate***(Customers with age greater than 60 years are Senior Citizens)*depending on the tenure of RD**Can open RD online**in SBI through e-RD feature in SBI internet banking**Charges for RD pre-mature closure**– Interest will be applied on premature withdrawal of RD at 1.00% below the rate applicable for the period the deposit has remained with the bank.- The SBI Recurring Deposit account can be transferred from one branch to other.

## SBI Recurring Deposit Interest Rates 2021

**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.

## SBI Recurring Deposit Interest Rates 2021 & Maturity value

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.

## How to Calculate Maturity Amount on SBI RD

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
```

## Helpful Posts on Recurring Deposits

- Which bank offers Highest Interest Rate on Bank FD?
- 13 Most Important things to know before investing in Bank Fixed Deposits
- Section 80TTB: Senior Citizens can Save Tax on their Interest Income
- TDS threshold on Bank FD increased to Rs 40,000 from April 1, 2019
- Avoid TDS: fill Form 15G and 15H
- Small Bank FDs offer interest up to 9% – Should you invest?
- How SWP in Debt Funds generate higher returns than FD
- How to increase bank deposit insurance through Joint accounts?
- How Safe is Your Fixed Deposit in Bank?
- How you loose Money in Fixed Deposits?
- Fixed Deposits that you can use to save Tax
- Fixed Deposits for NRIs
- Highest Interest Rate on Recurring Deposits
- Understanding Compounding and Yield in Fixed Deposit
- How to get Credit card against Fixed Deposit?
- 7 High Rated Companies Offering more than Bank Fixed Deposits
- All about Post Office FD Schemes

## Who should open SBI Recurring Deposit Account?

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. **

## SBI RD Penalty for Default in Instalment Payment

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.

APPASHOW CAN WE OPEN INVESTMENT IN PPF A/C IN SBI

IS RATE OF INTEREST ARE DIFFER FROM BANK TO BANK?

APPAShi amit,

PPF means Public Provident Fund ?

HOW CAN WE MAKE INVESTMENT IN PPF OTHER THAN FROM SALARY DEDUCTION

AmitInvestment in EPF/VPF (Employee provident Fund) is done through deduction from Salary. For PPF you have to do investment yourself!

APPASTHANKS

HOW CAN WE MAKE INVESTMENT IN PPF

PRASANTA PRATIHARi am prasanta pratihar

halp me

AmitWhat kind of help you are looking for … plz write your problem!

adihazSir

I want to know if I deposit 9000 per month for 3 years then what amount I’ll get with interest? pls tell

AmitAssuming 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.

siriis ther any deposits for 15,20,25 years

AmitMost Banks that I have checked offer Recurring Deposit for maximum tenure of 10 Years!

vinodhello 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.

AmitYou might try to contact the nearest SBI branch and request them to transfer the matured RD amount to your savings account.

Girishi 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

SaeedI have opened a recurring a/c in feb’09 with tenure of 60 months. What tax liability will the investment attract and when? How can I avoid the Tax?

AmitThe total interest gained by you in these 5 years would be added in the year of maturity to your income and taxed accordingly. You cannot do much to avoid genuine taxes. Just plan the outgo for the financial year!

AadidevI am planning to invest 2000/- per month for 10 years i.e 120 months,which will be the better option ,whether SIP in Mutual Funds or opening a Recurring Account with SBI or ICICI?

also tell us How much amount will i get after 12 years if i invest in a particular scheme

i mean after 10 years

What are income tax implications of investing in mutual fund i.e whether i have to pay any income tax on mutual fund profits annual vise?

AmitThe decision to invest in Equity Mutual Fund or Recurring deposit depends on your risk profile and the returns you expect/ require for next 10 years. Remember Mutual funds are more risky and at the same time more rewarding than Recurring deposits. Also for long term like 10 years Mutual Funds are good choice.

Presently you get around 8.75% for RD while you can expect 12% per annum return on equity mutual funds.

Also as far as taxation is concerned, in case of RD the interest received needs to added to your income and taxed accordingly. While in case of Mutual fund, the returns are tax free if its sold after one year of investment.

So decide your risk profile and decide accordingly for your investment!

AabhaRs 4000 which I then invest in a recurring deposit at 9% per annum,

How much interest do I gain per Annum,please kindly calculate it for me.

AmitFor Rs 4,000 deposit per month at 9% interest, you would get Rs 50,387 at the end of year on maturity.

AakarBanks pay interest only at the end of financial year on Fixed deposits and Recurring Deposits. So can I calculate it myself to arrive at my gross income?

AmitIts easy to calculate the annual return on fixed deposits and so you can do it yourself. But calculation on Recurring deposit is a bit complicated. Alternatively you can always ask bank for annual interest certificate on your RD * FD.

Amrendra kumar Dwivediwhy we do not opening online account

AmitYou can open SBI RD account online!

SagarGood Article. Need a consolidated sheet to have rough idea of RD rates in All banks.

hiteshDear Amit,

Thank you for your reply,

However there is some confusion, are interest on RD are taxable? you wrote in above article that “No TDS (Tax deduction at source) on interest income”, please clarify.

can investment in real estate is an option,

How about fd with dewan housing and finance ltd. these company have CARE AA+ rating and it give a return of around 12% for 5 years.

I would like to go for PPF as it is a safe option as far as i think and will give a considerable amount of around 38 lakhs.

Please let me know whether i have a realistic goal or not as i’m a monthly salaried man with no other income,

I can invest upto 20000 Rs per month with my current salary.

Regards,

Hitesh

AmitTDS is what banks need to deduct and submit to Tax Department. But in case TDS is not deducted then its your responsibility to pay tax on the same.

You might look at real estate but you would need lump sum amount for down payment. Also you must be aware of its risk. Historically Real estate have given good returns but it may or may not do so in future.

I checked FD rates for DHFL and it was in the range of 10.5% to 11% depending on tenure. And for most of good rated FD this is the range of interest rates you can get. Also remember that interest rates fluctuate, so you may not get similar interest rates after 2 years.

I would soon write up about different investment options and time it would take for you to achieve Rs 1 crore!

hiteshWaiting for your article.

Regards,

Hitesh

hiteshMy aim is to have around 100 lakhs in cash at the age of 45, i’m currently 29 and married,

i’m planning to open SBI RD for 10 years with 5000 Rs a month. and PPF 100,000 Rs a year.

RD account will give me around 9.5 lakhs and PPF aroung 37 Lakhs total of 47 lakhs.

Is this a geniun and correct plan, looking for a expert advise on my plan..

cannot increase the RD amount beyound 5000Rs. Considering future family and emergenc( if any god forbid) expense.

Also want some suggetions for earning the rest of the amount( 100 – 47=53 lakhs ) to complete my goal of 1 corer in 15 years.

Thank you.

Hitesh

AmitTo get 1 crore in 15 years, you would need to invest around Rs 20,000 per month assuming 12% annual return. You can get such returns only by investing in stock market or mutual fund. But as you might be aware that stock market can be risky too.

As far as investment in PPF and RD is concerned, it would give an average annual return of 8.5%. So to accumulate Rs 1 crore in 15 years, you would need to invest Rs 28,000 monthly. Also keep in mind that RD returns are taxable on maturity while income from PPF and long term investment in stocks are tax free.

So you have two option either choose a risky investment (mix of both debt and equity) or increase your monthly investment amount.

I would soon write a post about various investments options available.

Mahesh ShahRate of interest on ALL types of deposits offered by different are available on the IBA and RBI websites.

In youe right up the main thrust is higher rate of intrest available presently which can be ‘locked’ by opening a RD account. The rates are not given! simply the maturity values. If rates could be given your statement, inherently 100% correct & authentic, will carry more weight.

AmitThe interest rates of banks change frequently and its almost impossible to keep it updated. So the maturity value is as of post date. You should check with your bank before making a decisions.

AmitMahesh can you point me to the link on RBI/ IBA where I can find all the consolidated interest rates.

Thanks!

DevSBI Recurring Deposit is great option but can you also post a comparative list of interest offered by all banks. Could not find a consolidated list anywhere.

AmitI would try to post comparative list of recurring deposit schemes of all banks.