SBI Recurring Deposit Interest Rates 2021

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 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 deposit
  • TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more than Rs 40,000 in financial year
  • 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
SBI Recurring Deposit Interest Rates 2021

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.

SBI Recurring Deposit Maturity value and Interest Rate for Rs 1000 Monthly Deposit 2021
SBI Recurring Deposit Maturity value and Interest Rate for Rs 1000 Monthly Deposit – 2021

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

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.

146 thoughts on “SBI Recurring Deposit Interest Rates 2021”

  1. Sushil Gurjar......

    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…

  2. 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

  3. can anyone tell me the procedure to withdraw the amount from an E-RD on maturity. is it necessary to go to the bank in person for that ?

  4. Hi amit ,

    I have couple of queries stated as below

    1.For PPF after maturity post 15 yrs can I extend it ? I read i can extend it for next 5 yrs and then again for 5 yrs.So is there any definite tenure and any limitations?

    2.For SIP Do I need to specify the tenure at the begining of Investment.Like for RD i Have to specify the tenure. If Yes then what are the available option for duration (e.g- 5yrs ,10 yrs etc) and if no then how long Can I continue investing (i.e max duration any limits ?)

    3.For SIP Whats the Locking period? Can I discontinue at any moment?

    4.In SIP can I skip the investment for 1 or 2 months in between and then again continue if there is any financial crisis.

    1. @ Sanmoy
      1. Yes you can extend PPF any number of times in the block of 5 years after completion of 15 years maturity period. You can read more about the same here.
      2. For SIP in Mutual Fund there is no maximum duration limit. However most SIP atleast need to have minimum 3 to 6 months payments.
      3. Yes you can discontinue SIP at any moment by giving request to the concerned Mutual Fund.
      4. Yes you can skip 1 or 2 installments in SIP and continue again in most of the cases.

    1. yes any Recurring Deposit on any tenure is taxable as of today’s tax laws! You never know what would be tax laws after 10 years though 🙂

    1. Getting Rs 1 lakh by depositing Rs 1,000 per month for 66 months, you need annual return of 14.25%. The only way to achieve such returns is doing SIP in a good equity mutual fund. But before you make any investment know the associated risks!

  5. Hi Amit i have nri income because i am working in overseas and planning ti invest rs 52000 pm in sbi rd plan for 120 months is i have to pay tax on the income which i invested in rd plan and on the interest. Please reply

    1. You only need to pay tax on income arising in India. In your case its the interest you earn here. So you would need to pay tax only on interest earned on RD.

  6. Hello,

    I just opened an SBI e-RD. The date that the account was created was 23rd May 2014 and closing date is 23 May 2015. However, I could not get any information about the due date for payment of each installment. It would be great if you could help me out with this.


    1. When You are opening SBI e-RD account, the bank automatically asks you to schedule the payment from the related savings bank account. You might have done it. If not just look into the details in your e-RD account

  7. I am interested to open a RD Account for Rs.500 for Every Month for the tenure of 2 years . Which bank will be safe for me ? UCO or SBI Bank ? Please Suggest me.

  8. what is good opening a RD account with big amount for a short period of time or with a small amount for a longer period. please tell me in term of return which i get

  9. I am married with one daughter, working in railway under NPS. My net income is 36000. My savings plan is as under…
    LIC Jivan Anand(18 yr) = yearly prm. Rs.19687.
    LIC Jivan saral(22 yr)= yearly prm Rs.36030.
    PPF=Rs.25000 yearly.
    NEW PENSION cutting=Rs.2757 monthly.
    My monthly expense is Rs.20000. I have spare money about Rs. 5000 p.m. For which i can take moderate risk.

    Please suggest about my financial planning what i have done..and what extra i should do. My age is 37.

  10. 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

  11. 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;

  12. 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

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