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SBI Recurring Deposit Scheme
The State Bank of India (SBI) offers a Recurring Deposit (RD) Scheme that allows individuals to save a fixed amount regularly over a specified period. This scheme is designed for those who wish to cultivate a disciplined savings habit while earning attractive interest rates. The RD scheme is popular due to its flexibility, safety, and potential for good returns.
Guaranteed Returns
Includes Life Cover
Completely Tax Free+
3 Benefits, 1 Plan
Maximum returns offered by:
7.4%*
(Tax-Free)
Guaranteed Plan
(By Insurance companies)4.6%*
(After Tax)
Fixed Deposit
(Offered by Banks)4.0%*
Savings Account
(Post Office)Get Guaranteed returns upto 7.4%*
Fully Tax-Free, Life Cover Included
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SBI FD Interest Rates
- SBI Recurring Deposit Scheme
SBI FD Interest Rates
What is a SBI Recurring Deposit (RD) Scheme?
An SBI Recurring Deposit is a savings scheme where customers can deposit a fixed sum of money at regular intervals (monthly) for a predetermined tenure. The key characteristics include:
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Regular Deposits: Customers can choose the amount to be deposited monthly.
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Fixed Tenure: The tenure can range from 12 months to 10 years.
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Interest Earnings: Interest is compounded quarterly and paid at maturity.
Highlights of SBI RD Interest Rates ~ w.e.f. 15 June 2024
| Tenure | SBI RD Rates for General Citizens | SBI RD Rates for Senior Citizens |
| 1 Year | 6.80% | 7.30% |
| 2 Year | 7.00% | 7.50% |
| 3 Year | 6.75% | 7.25% |
| 4 Year | 6.75% | 7.25% |
| 5 Year | 6.50% | 7.50% |
| 10 Year | 6.50% | 7.50% |
Features of the SBI Recurring Deposit Scheme
The SBI Recurring Deposit Scheme comes with several attractive features:
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Deposit Tenure: Minimum of 12 months and maximum of 120 months.
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Accessibility: Available at all SBI branches.
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Minimum Deposit: Starts at ₹100 per month, with increments of ₹10.
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Late Payment Penalty: Charges apply for delayed installments.
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Account Closure: The account is closed if six consecutive installments are missed; the balance is refunded to the account holder.
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Maturity Instructions: Customers can choose how to handle maturity proceeds (credit to account, issue IOI, or convert to STDR).
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Nomination Facility: Available for individuals only.
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Universal Passbook: Issued for tracking deposits and interest.
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Loan/OD Facility: Loans or overdrafts available against the deposit.
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Transferability: Accounts can be transferred between SBI branches.
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Competitive Interest Rates: Aligned with Term Deposits for the public and senior citizens.
FD interest rates India have fallen consistently over the last 12 years.
SBI RD Rates for Domestic Deposits in 2025 ~ 15 June 2024
| Tenure | SBI RD Rates for General Citizens | SBI RD Rates for Senior Citizens |
| 1 Year to < 2 Years | 6.80% | 7.30% |
| 2 Years to < 3 Years | 7.00% | 7.50% |
| 3 Years to < 5 Years | 6.75% | 7.25% |
| 5 Years - 10 Years | 6.50% | 7.50% |
SBI RD Rates for NRE/ NRO Deposits in 2025 ~ 15 June 2024
| Tenure | SBI RD Rates For NRI |
| 1 Year to < 2 Years | 6.80% |
| 2 Years to < 3 Years | 7.00% |
| 3 Years to < 5 Years | 6.75% |
| 5 Years - 10 Years | 6.50% |
How to Apply for the SBI Recurring Deposit Scheme?
Applying for an SBI Recurring Deposit is straightforward:
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Visit the SBI Website: Go to the official SBI website or use the mobile app.
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Select 'Recurring Deposit': Navigate to the deposits section.
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Fill in Details: Enter personal and deposit details, including amount and tenure.
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Submit Documents: Provide necessary KYC documents (like ID proof, address proof).
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Make Initial Deposit: Complete your first deposit as per the chosen amount.
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Benefits of Investing in SBI RD Interest Rates
Investing in an SBI Recurring Deposit offers several advantages:
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Guaranteed Returns: Fixed interest rates ensure predictable earnings.
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Disciplined Savings: Encourages regular saving habits.
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Safety: Being a government-backed scheme, it is considered safe.
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Tax Benefits: While RDs do not qualify for tax deductions under Section 80C, they are exempt from TDS if interest earned is below ₹40,000.
Conclusion
The SBI Recurring Deposit Scheme is an excellent choice for individuals looking to save consistently while earning interest on their deposits. With flexible tenures, competitive interest rates, and online management facilities, it caters to various financial goals and encourages disciplined savings.
FAQs
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What is the minimum amount required to open an RD account?
The minimum monthly deposit starts from ₹100. -
Can I withdraw money before maturity?
Premature withdrawal is allowed but may incur penalties. -
What happens if I miss a monthly deposit?
Missing a payment may lead to penalties or account closure after a certain period. -
Is there a loan facility against my RD?
Yes, you can avail loans against your RD after a specified duration. -
How is interest calculated on my RD?
Interest is calculated quarterly and credited at maturity based on the applicable rate for your tenure.
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The Fixed Deposits or FDs of Banks are one of the most popular*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per
applicable tax slabs post 31st march 2023
#Discount offered by insurance company
##The Guaranteed Returns are dependent on the policy term and premium term availed along with other variable factors. 7.4% rate of return is for an 18-year-old, healthy male for a policy term of 20 years and a premium term of 10 years with ₹5,00,000 annually installment premium. All plans listed here are from insurance companies’ funds.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in