Srinagar, Feb 27: The Recurring Deposit (RD) of country’s largest lender State Bank of India (SBI) or SBI RD gives an opportunity to common people to save money through regular monthly deposits of fixed sum over a period of time. It is often said that RD helps a person save considerable amount of money through small savings. Notably, SBI RD is a risk-free investment with assured return.
SBI RD interest rate
According to SBI’s official website — sbi.co.in — the SBI RD interest rate is 5.3 per cent for 3-5 year tenor. SBI RD interest rate for above 5 year tenor is 5.4 per cent.
SBI RD calculator for senior citizens
If RD account holder is a senior citizen, he/ she will get an additional 0.80 per cent SBI RD return. It means that a senior citizen will get 6.2 per cent return on SBI RD if he/she deposit the money for more than 5 year tenor.
Penalty rules of SBI RD
There is penalty levied on non payment of the monthly SBI RD. “For accounts with maturity period 5 years and less, Rs 1.50 per Rs 100 per month is charged while for accounts with maturity period above 5 years, Rs 2.00 per Rs 100 per month is charged on the depositors.”
If a depositor fails to deposit six consecutive instalments, the SBI RD account shall prematurely be closed and balance paid to the account holder.
SBI RD Service charge
“A service charge of Rs 10 will be levied on Recurring Deposit accounts paid out on or after the date of maturity, wherein there is default in payment of three or more consecutive instalments and the account has not been regularized,” claims sbi.co.in.
SBI RD Calculator
If an investor is under 60 years of age and he/she invests Rs 1,000 per month in SBI RD for ten years, then the investor will get SBI RD interest rate of 5.4 per cent.
As per SBI RD calculator, if you are depositing Rs 1000 per month for 120 months at SBI RD interest rate of 5.4 per cent, your SBI RD maturity amount will be Rs 1,59,155 or Rs 1.59 lakh.
