There is speculation that RBI would decrease interest rates going forward. Its a good idea to lock your investment in high interest rate by using Recurring Deposit (RD). 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 July 17, 2015 then interest rates have been revised to 7.75% – 8.00% for General and 8.00% – 8.25% for senior citizens depending on the tenure of deposit.
The table below gives the details.
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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.
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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.