SBI RD Scheme: The State Bank of India (SBI) has introduced a new Recurring Deposit (RD) scheme, designed as a beneficial option for small investors who want to build a substantial fund with a modest initial investment. With this scheme, you can start investing with just ₹1000 per month, leading to significant returns after a fixed period—potentially reaching lakhs.
Key Benefits of SBI’s RD Scheme
- Big Savings from Small Investments: Start with just ₹1000 and adjust your monthly contribution according to your budget.
- Interest Rates: SBI’s RD scheme currently offers interest rates ranging from 5.75% to 6.50%, depending on the tenure and market conditions.
- Tenure: You can choose a tenure from 12 months up to 120 months (10 years).
- Flexibility: Deposit a fixed amount each month, encouraging regular savings habits.
- Safe and Guaranteed Returns: As this scheme is provided by a government bank, your funds remain secure with guaranteed returns.
- Tax Deduction: Interest earned is subject to TDS, but it doesn’t qualify for tax benefits under Section 80C.
Investment Example
If you invest ₹1000 per month for 10 years, you could receive around ₹1.65 lakh upon maturity, depending on applicable interest rates.
How to Open an RD Account?
You can open an RD account by visiting an SBI branch.
If you have internet or mobile banking, you can open an RD account online.
Required Documents
- Identity proof (Aadhaar card, PAN card, Passport)
- Address proof
- Passport-size photo
This scheme is ideal for those who want to accumulate a substantial amount in the future through small, consistent investments.
