SBI RD Interest Rates

SBI, expanding with the times and aspires to provide ethical and sustainable financial solutions, keeps redefining banking in India.

Here's everything that you need to know about RD in SBI.

SBI RD Interest Rates 2022

SBI RD rates for regular citizens with tenures between 12 months and ten years range from 5.3 to 5.5 percent. Senior citizens get 50 basis points additionally.

Disclaimer: RD Interest rates are subject to change with time. PolicyBazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

Calculation of Maturity of SBI RD Account

Through the "Enquiry" tab found on the e-RD page, you can inquire about the maturity amount, maturity date, and interest rate without opening the e-RD. The maturity amount depends on the customer's chosen kind of account, duration, and installments. The maturity value of RDs is paid 30 days or one month after the last payment was deposited or after the acceptable deposit period, whichever comes first.

Types of SBI RD Accounts

• SBI Recurring Deposit: A standard RD program enables users to accumulate savings through recurring monthly payments for a predetermined time. There is no maximum deposit amount. However, a minimum monthly deposit of Rs.100 is necessary. The customers will earn a set interest on maturity. 

• SBI Flexi Deposit: Customers can deposit variable deposits rather than a fixed payment with this RD variation. The minimum and maximum deposit terms are five and seven years, respectively. The customers have to deposit at least Rs.5000 annually. Additionally, the first installment must be for at least Rs.500. Any day of the month, and any number of times may be used to make the deposit. Each financial year, Rs.50,000 is the maximum deposit amount in this account.

• SBI Holiday Saving Account (Thomas Cook): SBI and Thomas Cook India have partnered to offer the holiday saving account, where consumers can make monthly deposits, and Thomas Cook India will get the maturity amount. The amount deposited in this account is for the pre-selected vacation package among those offered on the Thomas Cook India website as Holiday Savings Account packages. The bundle will have a 13-part cost, with interest accruing over 12 months. After a year, Thomas Cook will take over the case, and after accounting for accrued e-RD interest, they will fund the 13th installment for the package.

• SBI Holiday Saving Account (Cox & Kings): State Bank of India offers a mechanism for you to regularly save so that your ideal vacation becomes more than just a fantasy. This program, created especially for vacationers by SBI and Cox & Kings, is now available. Make monthly savings in this program to take advantage of a vacation package offered under Holiday Savings Account products on the Cox & Kings website. The package cost will be divided by 13, and you will pay it in 12 monthly installments. After the 12th month, Cox & Kings will receive the maturity funds in payment for your chosen vacation package. After deducting the accrued e-RD interest, the corporation will pay for the thirteenth installment.

How to Open An RD Account With SBI?

SBI provides both online and offline solutions for opening recurring deposit accounts. Go to the closest SBI bank, physically fill out the application form, and submit it with the necessary documentation to start an RD account offline. Sign in to your SBI net banking account and follow the instructions to create an e-RD to open an RD account online. If you don't already have one, you must first create an SBI savings account.

What Are the Tax Benefits of SBI RD Account?

Regular deposits are subject to tax withheld at the source (TDS). In the case of an SBI Holiday Savings Account, the TDS will be imposed based on the Customer Information File (CIF) value.

In the typical situation, the bank will apply TDS if your yearly interest income from FD and RD accounts across branches exceeds Rs.40,000 per financial year. For seniors, the cap is Rs.50,000 every fiscal year. If your yearly income does not exceed the basic exemption limit, you can file Form 15G/15H, asking the bank not to deduct tax at the source. TDS provisions shall apply accordingly.

Eligibility Criteria to Open An SBI RD Account

To open an RD with SBI, customers shall fulfill the following eligibility requirements:

• A Hindu Undivided Family or an Indian citizen must be present to set up a recurring deposit account.

• To open an RD account, the person must already have a savings account with SBI.

• The person must have a reliable source of income.

• NRO and NRE accounts are another way for NRIs to open an RD account.

What Are the Documents Required To Open An SBI RD Account?

Keep these documents handy if you want to open an SBI RD account:

• Aadhaar, voter ID, PAN, senior citizen ID, and ration card are acceptable forms of identification.

• Driving licenses, utility bills, and bank account statements are proof of address.

Premature Withdrawal from SBI RD Account

Premature closure is allowed but subjects to the following early penalty:

• The early withdrawal penalty for Term Deposits up to Rs.5.00 lacs is 0.50 percent (all tenors).

• The penalty for Term Deposits over 5,00,000 rupees will be 1% irrespective of the tenure.

• For the duration that the bank held the deposit, the interest will be 0.50 percent or 1 percent less than the rate in effect at the time of the deposit or 0.50 percent or 1 percent less than the contracted rate, whichever is lower.

• The rules governing income taxes apply to the account for deducting tax at source (TDS).

• The depositor may submit Form 15H/15G to get an exemption from the income tax deduction.

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