SBI Recurring Deposit Account: Interest rates, features, and how to open SBI RD account online?

Established on June 2, 1806, in Kolkata, SBI is India’s largest multinational public sector bank. SBI bank provides services to around 45 crore customers through 22,000 branches, 62617 ATMs, and 71,968 BC outlets. Moreover, the bank has diversified its business by creating SBI General Insurance, SBI Life Insurance, SBI Mutual Funds, SBI Card, etc. Along with providing a range of financial services, SBI also offers recurring deposit account services.  

 

What is a recurring deposit account?

A recurring deposit is a deposit where a customer is allowed to regularly deposit a certain percentage of their income in the recurring amount for a stipulated period. Unlike a fixed deposit, where you can deposit money once, a recurring deposit allows you for a regular deposition of money for a term period.

 

SBI Recurring Deposit Account

SBI bank offers the service of recurring deposits with a minimal amount of Rs. 100. A customer needs to keep a recurring deposit account active for at least a year to a maximum limit of 12 years. Moreover, if your investment is below Rs. 2 crores, you will receive an annual interest of 5.10% or 5.50%. You can earn an additional interest of 0.50% or 0.80% if you fall under the senior citizen population category.

 

SBI Recurring Deposit account interest rates 2022

Refer to the table below for interest rate for RD in SBI in 2022; there have been some changes to the SBI RD interest rates for 2021.

Period	Interest rates (p.a) for general citizen	Interest rates (p.a) for senior citizen
1 to 2 years	5.10%	5.60%
2 to 3 years	5.20%	5.70%
3 to 5 years	5.45%	5.95%
5 to 10 years	5.50%	6.30%

*Interest rates given above are applicable w.e.f. 15 February 2022.

See also: All about SBI personal loan interest rates

 

How to open a recurring deposit account online?

• Log in to the SBI net banking website 
• Select ‘Fixed Deposit’ and ‘E-RD form’ from the main menu
• Click on Proceed
• Select the account for transferring funds
• Enter your desired amount (minimum Rs 100) and time period (minimum one year) 
• Choose your ‘payout option’
• Set ‘standing instruction’ (mandatory). Your amount will be transferred to your RD account
• Check the ‘Terms and Condition’ boxes
• Click and verify your information before selecting the ‘confirm’ option.

See also: SBI savings account in India: All you need to know

 

What are the features of an SBI RD account?

• It is available in every branch of SBI
• Minimum tenure of one year and a maximum tenure of ten years
• A nominal amount of Rs. 100 to start your RD account
• No top caps on an amount for investing
• You can add nominees like your spouse or children, or parents
• You can wire money from any SBI branches to your RD account
• You can avail of loan facilities against your RD account
• You will get a universal passbook

 

What are the penalties levied by SBI if you fail to deposit money in an RD account?

• If a customer fails to deposit the instalment for three consecutive months, you will be charged Rs. 10 as a penalty, but the account will be active
• If your tenure is of five years, for late payments, you will be charged Rs. 1.50 for every Rs. 100 per month
• If your tenure is more than ten years, for later payments, you will be charged Rs. 2 for every Rs. 100 per month

 

Steps to close your SBI RD account

• Log in SBI website using your credentials 
• Select ‘e-TDR/e-STDR’ from the ‘Fixed Deposit’ tab
• Select e-RD from ‘types of deposit account’ and proceed
• Click on ‘Close A/C’ on the new dialogue box/website and proceed
• After verifying your RD account details, mention ‘close RD Account’ under ‘Remarks’ and proceed
• Enter your password and proceed
• You will receive the message ‘your RD account has been closed successfully’

Remember, if you close your RD account prematurely, you will need to pay a nominal amount as a penalty. Moreover, you cannot remove money from the SBI RD account partly. 

See also: Read about IFSC code SBI 

 

Summary of SBI Recurring Deposit Account

Minimum amount to open RD account	Rs 100
Time period	1 year to 10 years
Interest Rate for RD in SBI	5.10% to 5.50%
Interest Rate for Senior Citizen	Additional 0.50% to 0.80%
Loan facilities	Available against RD account
TDS on RD amount	Applicable
Rate on Penalty	Tenure below 5 years: Rs. 1.50 per Rs 100 pm Tenure above 5 years: Rs. 2 per Rs 100 pm

 

Should I invest in an SBI RD account?

In the long term, savings are generally good. Investing in an SBI RD account may be beneficial because it provides a satisfactory return on investment. Moreover, you can control your spending by locking your money for at least a year. If you are keen on saving money but don’t know where to start, your safest bet should be an SBI RD account.

Check out: Have Information regarding SBI IFSC 

 

FAQs

Can I open an RD account under a different name?

Your RD account will be associated with your account. So, if you are opening your RD account via the website, you cannot open an RD account under a different name. You will need to visit the bank to do so.

Can I move RD account money to a different account post maturity?

No, your RD amount will be transferred back to the funding account post maturity.

Does the RD account interest rate change?

Mostly, it remains the same. However, as time increases your interest rate can go up from 5.10% to 5.50%.

Can I remove the interest amount from RD without taking the principal amount?

No, you cannot remove your amount partly. You will have to remove the whole amount if you wish to.