RD Interest in SBI

Can you tell me about the Inerest Rate for RD or Recurring Deposit in SBI (State Bank of India) as I am planning to open an Account?

[shikha]

RD or Recurring Deposit in SBI (State Bank of India) is a product to provide a person with an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time.

SBI Recurring Deposit Scheme – Features:

 Maturity from 12 to 120 Months
 Nomination facility available
 The minimum amount of monthly installment is 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
 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 is 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 Rates below One Crore

Tenure ROI (% p.a) ROI for Senior Citizens (% p.a)

1 year to 455 days 7.15 7.4
456 days to less than 2 years 7.25 7.5
2 years to less than 3 years 7.25 7.5
3 years to less than 5 years 7 7.25
5 years and up to 10 years 7 7.25


SBI Short-term RD Interest Rates

It offers Recurring Deposit for a short deposit term from a minimum of 12
months to 455 days at an interest rate of 7.25% for regular customers.

For holding an RD for a short duration of more than 455 days to maximum 3
years, the rate of interest offered is 7.50%.

SBI Medium and Long Term RD Interest Rates

It also offers medium deposit tenures and long deposit tenures on Recurring
Deposit. Medium tenures range over a period of more than 3 years to 5
years and the interest rate applicable is 7.00%.

The long term is for tenure of more than 5 years to a maximum period of not
more than 10 years, at an interest rate of 7.00% as well.

SBI Senior Citizen Recurring Deposit Interest Rates
Senior Citizens are offered an additional interest rate hike of 0.25% over the
interest rate offered to the general public.

In it, one receives 7.50% interest rate for a short term RD ranging from 1
year to 455 days and for a period of more than 455 days to maximum 3
years the interest rate applicable will be 7.75%.

For a medium term and long term recurring deposit ranging from 3 years to
10 years, the interest rate offered by the Bank is 7.25%.