Indian banks offer 2 kinds of savings account options that are beneficial in the long run and are completely safe. These are the Fixed Deposit and the Recurring Deposit accounts. Even though both are beneficial in their way, Recurring Deposits are considered to be better as they do not have a fixed withdrawal period just like the Fixed Deposits.Read more
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Rate of Interest (Yearly)
State Bank of India provides an option to its account holders (new or existing both) to open a Recurring Deposit account and save regularly by depositing a fixed monthly amount for a pre-decided period of time.
One of the reliable sources of investment, a Recurring deposit is also an investment instrument just like a Fixed deposit that helps an investor save money on a regular monthly basis. RDs are considered to bring disciple in an investor’s life as it inculcates a regular investment habit in them. State Bank of India just like other banks in our country provides RD account just like FD account. Both Recurring Deposits and Fixed Deposits mostly work on similar terminology. The main difference is that lump sum deposits are made under Fixed Deposits whereas Fixed monthly deposits are made under Recurring Deposits.
Recurring Deposits offers an attractive interest rate that varies from one bank to another just like Fixed Deposits. The current SBI RD rates for General Citizens vary from 5.00% to 5.40%. The calculation of RDs is complex and hence RD Calculators are used by banks to calculate the amount to be received at the time of maturity.
The literal meaning of recurring is continuous. SBI Recurring deposits means continuous deposits that are made to the SBI bank RD account for a defined period of time to save your hard-earned money. The interest rate remains constant throughout the tenure of the RD, making RD Calculation a little less complicated.
SBI RD Calculator helps in the computation of returns in a hassle-free manner within a few seconds. It is quite easy when compared to manual RD Calculation as all you have to do is put in some details related to your SBI RD on the calculator, and it reflects the amount it will accrue after maturity.
Recurring Deposit Rates for General Citizens
Recurring Deposit Rates for Senior Citizen
1 year to 1 year 364 days
2 years to 2 years 364 days
3 years to 4 years 364 days
5 years to 10 years
The investor has to follow this simple procedure to calculate SBI RD returns online through RD Calculator:
Visit the official website of the State Bank of India
Enter your valid credentials (User ID and Password)
Open the RD Calculator tab
Enter the amount deposited every month
Fill in the tenure of your RD investment
The current SBI RD rate will be auto-filled
In the case of using a third party website, the investor has to fill the interest rate offered by their bank
Click on the “RD Calculate” button
Your RD amount will be displayed immediately
The main advantages of using an RD Calculator are:
Save time and energy
Easy to use
Gives accurate results
Offers instant comparisons between 2 or more bank RD interest rates
Provides the right estimation of returns so that the future can be planned accordingly
SBI Recurring Deposit can be calculated both with the help of SBI RD Calculator and RD Formula. Even though usage of a calculator is more efficient and hassle-free, an investor can also compute the maturity value manually with the help of the SBI RD calculation formula mentioned below:
Maturity value = R [1 + N – 1] – (1 + i) – 13
R = The Rate of Interest
N = Total number of quarters in the tenure
i = The monthly installments
Mr. X deposits an amount of Rs. 2,000 every month in his SBI RD account for 2 years. Assuming the current rate of interest to be 7%, the maturity amount of the SBI RD accounts will be:
Maturity value = 7 [1 + 50 – 1] – (1 + 5) – 13
Maturity value = Rs. 51,640
An Indian resident
A member of HUF (Hindu Undivided Family)
NRIs provided they have an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account
A minor below 10 years by their parents or legal guardians
Following documents are necessary for an RD account to be functional along with any other documents asked by the post office of India:
Identification Proof, like:
Government ID card
Senior citizen ID card
Passport size photographs
Address proof, like:
SBI bank account statement
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