The interest rate on Recurring Deposit accounts at the country’s largest state-run bank, State Bank of India has been revised. For the uninitiated, a recurring deposit is a savings plan in which an investor pays in installments.
With the most recent revision, SBI is now offering recurring deposit investments interest rates ranging from 5.1 percent to 5.4 percent, depending on the tenure. Senior citizens receive a 50 basis point interest rate increase on all RD investments.
The most recent SBI Recurring Deposit interest rates are effective as of January 15.
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Here are the most recent SBI RD rates:
- Recurring deposit maturing in one to two years: Interest rate of 5.1 percent
- Recurring deposit maturing in two to three years: Interest rate of 5.1 percent
- Recurring deposit maturing in three to five years: Interest rate of 5.3 percent
- Recurring deposit with a maturity period of 5 to 10 years: Interest rate of 5.4 percent
Installments are usually sent out once a month. Customers of SBI can open a recurring deposit account with a minimum deposit of Rs 100 and increase their investment in Rs 10 increments.
There is no maximum amount that can be deposited in a recurring deposit account. If an investor recovers the installment, he or she is not permitted to change it again and must open a new RD account to invest further.
Investors can select a maturity period ranging from 12 months to 10 years. SBI offers higher interest rates on recurring deposit accounts opened by senior citizens in the case of fixed deposits.
Investors can open a Recurring Deposit account by visiting a branch or using Netbanking. SBI customers can begin investing in recurring deposits by logging in to their SBI net banking accounts with their ID and password.
