SBI Recurring Deposit Features & Interest Rate – February 2020

Below are the features, interest rates, maturity amount along with other details for SBI Recurring deposit.

SBI Recurring Deposit Scheme – Features:

  • Maturity from 12 to 120 Months
  • Nomination facility available
  • The minimum amount of monthly installment shall be Rs 100.
  • The amount of installment and number of installment 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 deposit
  • No TDS (Tax deduction at source) on interest income

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  • Passbook Issued
  • Hassle free premature spot payment anytime
  • Senior citizens get additional 0.25% interest rate (Customers with age greater than 60 years are Senior Citizens)
  • 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.

SBI Recurring Deposit Interest Rate:

Update: From February 10, 2020 the interest rates have been revised to 4.50% – 6.00% for General and 5.00% – 6.50% for senior citizens depending on the tenure of deposit. The table below gives the details.

SBI Fixed and Recurring Deposit Interest Rate wef 10 February 2020
SBI Fixed and Recurring Deposit Interest Rate wef 10 February 2020

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SBI Recurring Deposit Maturity value:

The table below shows the maturity value for Rs 1,000 monthly deposit with prevailing interest rates at SBI for general public and senior citizens.

SBI Recurring Deposit Maturity value and Interest Rate for Rs 1000 Monthly Deposit – February 2020
SBI Recurring Deposit Maturity value and Interest Rate for Rs 1000 Monthly Deposit – February 2020

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SBI RD penalty for default in installment payment:

Whenever a depositor fails to pay the installment on due date for three consecutive months the account shall not be closed and service charge of Rs 10/- is applicable.

Penalty in case of delay in payment of installment 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.

146 thoughts on “SBI Recurring Deposit Features & Interest Rate – February 2020”

  1. hi amit,

    PPF means Public Provident Fund ?


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

        1. 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.

  2. 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.

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

  3. 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

  4. I 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?

    1. The 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!

  5. I 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?

    1. The 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!

  6. Rs 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.

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

  7. Banks 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?

    1. Its 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.

  8. Dear 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.


    1. TDS 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!

  9. My 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.

    1. To 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.

  10. Rate 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.

    1. The 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.

  11. SBI 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.

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