State Bank of India (SBI) gives its customers a great opportunity for safe and stable investment through Recurring Deposit (RD) scheme. If you want to create a big fund by making small savings, then this scheme can prove to be beneficial for you. Let’s understand its benefits and important information in detail.
Start with Rs 100
The biggest feature of SBI RD scheme is that you can start investing in it with just Rs 100. You can deposit any amount in multiples of Rs 100 as per your convenience. There is no maximum investment limit in this, so that people of every class can take advantage of this scheme. NRI customers can also invest in this scheme.
Interest rates on SBI RD
Interest rates in SBI’s RD scheme vary according to the period of investment.
For general citizens: 6.5% annual interest is given for a period of 5 years.
For senior citizens: 7% annual interest is given for a period of 5 years.
Estimated return according to interest
If you invest Rs 1000 every month, then your total investment in 5 years will be Rs 60,000. At the rate of 6.5% annual interest, you will get an additional interest of Rs 10,989, that is, the total amount will be Rs 70,989.
Other benefits of SBI RD scheme
Nominee facility: Investors can add a nominee to their RD account.
Loan facility: If needed, a loan of up to 90% of the amount deposited in RD can be taken.
Premature withdrawal: If money is needed for any reason, the RD account can be closed prematurely (with certain conditions).
How to open an RD account in SBI?
If you are an SBI customer, you can open an RD account by visiting your nearest branch or online through YONO app and netbanking.
Required documents
Aadhaar card
PAN card
Passport size photo
Mobile number
Apart from this, parents can also open RD accounts in the name of children aged 10 years or above. This scheme is safe as well as helps in inculcating the habit of regular savings.
FAQs (Frequently Asked Questions)
1. Can I close my RD account prematurely?
Yes, there is a facility to close the account in SBI RD scheme, but the provisions of the bank will apply for this.
2. Why do senior citizens get more interest?
Senior citizens are given additional incentives by the bank, so that they can get more benefit in their savings.
3. Can I open an RD account online?
Yes, existing customers can open an RD account from home through SBI YONO app or netbanking.
If you are looking for safe and profitable investment, then this scheme of SBI can be a great option for you.