SBI Recurring Deposit
|The SBI Recurring Deposit Account gives you high returns on all your savings that helps to meet your long term financial goals like Marriage plans, children’s education, family vacation or buying your dream car easily. You do not need to save a considerable amount of money every month for the recurring deposit, even a small amount of money grows in to a lump sum under the recurring deposit scheme. By opening a recurring deposit account with State Bank of India you not start earning high interest rates but also make the first step towards savings.
Do not worry if you are still confused about opening a recurring deposit account. The account can be opened by making a minimum deposit of Rs 100 only and can choose the maturity period that varies from 12 months to 120 months. The application process is also very easy and simple as you can fill up the application form online and can open the recurring deposit account online. In addition to this you can also make an application form download by visiting the website of the bank.
You can enjoy tax exemption benefit on the rate of interest that you earn on the recurring deposit scheme. You can get a tax exemption of up to Rs 12000 per year if the interest paid on the recurring deposit exceeds Rs 50000 per year.
SBI Recurring Deposit Benefits
Following are the benefits of opening a recurring deposit account with SBI:
- Safety: By depositing your money in the recurring deposit account of the bank you can be at complete peace of mind.
- Liquidity: The bank provides a loan and an overdraft facility of up to 90% of the deposited amount.
- Transferability: You can at anytime transfer your recurring deposit account from one branch to another branch with out any extra charges.
- Regular Instalments to your Account: You can deposit a fixed sum of money every month in your account and make a fund.
- Online facility: You can also access your recurring deposit online by login in to your account and keep a track on your account.
- Free Fund Transfer: By giving standing instructions to your bank you can at anytime transfer funds from your Current or Savings Bank Account to your Recurring Deposit Account.
SBI Recurring Deposit Interest Rate
Given below are the current interest rates of SBI Recurring Deposit. The interst rates are compoundly calculated.
|Time Period||Below Rs.15 Lakhs||Rs.15 lakhs to less than Rs. 1 Cr|
|7 days to 90 days||6.50||7.50|
|91 days to 179 days||6.50||7.50|
|181 days to 240 days||6.50||7.50|
|241 days to less than 1 year||6.50||7.50|
|1 year to less than 2 years||8.50||8.50|
|2 years to less than 3 years||8.50||8.50|
|3 years to less than 5 years||8.50||8.50|
|5 years and up to 10 years||8.50||8.50|
In addition to the below mentioned table you can also calculate the interest rate with the help of the SBI recurring deposit online calculator that is provided in the website of the bank. You will only have to enter certain details like amount of recurring deposit and tenure of the deposit. Please remember that the rate of interest of 2012 may vary with the interest rates of 2011 as the rates keep on changing due to the market fluctuations.
SBI Recurring Deposit Terms and Conditions
Given below are the terms and conditions which you must remember before applying for the SBI recurring deposit:
If you have any queries regarding the SBI recurring deposits then you can dial the toll free helpline numbers 1800112211 or 18004253800 and get assistance from the customer care executives. For further details regarding the recurring deposit you can visit the website of the bank.
- The rate for premature withdrawal is 0.5% from the time the deposit has been made by you.
- Overdraft facility is only available against the remaining balance in your recurring deposit account.
- You will be charged penalty if you are unable to pay the monthly installments.
- You will not be issued any Cheque book or ATM card. However, passbooks are issued.
- You can have a nominee for your RD account as nomination facility is also available.
Last Updated On: 2012/09/21