SBI RD Interest Rates
In case the interest earned by you across all of your recurring deposits across all branches of SBI during a year exceeds 10,000, the bank must deduct TDS at 10.3%. In case your IT PAN isn’t updated within the SBI records, it must deduct twice the TDS at 20.6%. So, do remember to update your PAN on your RD.
SBI Recurring Deposit Features
There are many features associated with the Recurring Deposit of SBI Bank. Following are some important among them-
- SBI Bank’s Recurring Deposit allows you to choose a Term & Amount you wish to invest every month and earn Guaranteed Return at an applicable interest rate. The terms and conditions associated with the deposit agreement should be read carefully.
- Nomination Facility Available
- Facility to book Recurring Deposit through Internet Banking
- The deposit tenure ranges from 240 months
- Visit any SBI Bank branch to avail of his service
- TDS deductions are subject to the existing income tax rules as at the time of opening the RD account
SBI Bank RD Interest Rates 2021
Senior Citizen Rates
|1 year to 1 year 364 days||5.00%||6%|
|2 years to 2 years 364 days||5.10%||5.60%|
|3 years to 4 years 364 days||5%||5.80%|
|5 years to 10 years||5.40%||6.20%|
Types of SBI Bank Recurring Deposit Schemes
There are a variety of different RD Interest Rates which can be availed during the deposit process of the amount. Based on the tenure SBI Bank Recurring Deposit can be classified into three types, these are:
Under this type of RBL Bank Recurring Deposit, your deposit’s tenure ranges between 6 months to 3 years. Such RD is best suited for those who are looking to develop the habit of savings.
When you are not willing to commit for the long tenure and are not sure how much benefit you can get from RD, then opting for a medium-term recurring deposit is a good decision. It provides the right balance of flexibility and commitment to invest so that you can assess its benefits. The tenure ranges from 3 years to 7 years.
The long-term RD is best suited when you want to earn the return on your investment but do not have the lump sum amount to invest in a fixed deposit. By investing in recurring deposits you get the flexibility of making monthly investments and earn a return similar to FD. The tenure ranges from 7 years to 10 years.
Documents required to open Recurring Deposit Account in SBI
|Identity Proof||Address Proof|
|PAN card||Telephone bill|
|Voter ID card||Electricity bill|
Bank Statement with Cheque
|Government ID card||
Certificate/ ID card issued by SBI
Photo ration card
Senior citizen ID card
SBI Recurring Deposit Rates – Premature Withdrawal
Premature withdrawal of RD with SBI is allowed. SBI may charge a nominal amount of penalty as per their banking norms. However, Partial withdrawal of the RD account is not allowed.
Calculation of SBI Recurring Deposit Interest Rates
Certain steps must be followed in the interest calculation process. Following is a step by step analysis of that interest calculation option-
- In a periodic interest payout option, SBI would deposit the interest earned at each interval (say, quarterly) to your bank account. The interest would remain the same across the life of the deposit. On maturity of RD, unless the deposit is renewed, would transfer the principal amount to your bank account. That principal amount can be used by you for business purposes.
- In case you opt for an SBI cumulative deposit, on maturity you would get a credit for the principal and interest earned net of TDS.
- Calculate the RD maturity amount using the RD calculator. The RD calculator gives you an accurate measure of the quarterly or monthly interest calculated.
RD Account Opening Process at SBI Bank
Following methodologies should be added to open a Recurring Deposit account in a leading banking institution in the country-
- Approach the banking institution with an account-opening form
- Two passport size photographs
- Address and identity proof such as the Aadhaar card, passport, PAN (permanent account number) card or declaration in Form 60 or 61 as per the Income Tax Act, 1961, driving license, voter’s identity card or ration card.
- Carry original identity proof for verification at the time of account opening. Physical Verification is a very important step in the account opening process.
- Choose a nominee and get a witness signature to complete the formalities and get started. After obtaining the requisite signature your account becomes valid and active.
Nomination Facility on SBI RD
Nomination facility is available in RBL Bank recurring deposits. Whether you open it in a single name or joint name, only one nominee per account is permissible. You should ensure that the nomination is followed as per RBI rules. You can change the nominee through declaration in appropriate form. The nominee is the beneficiary of the deposit that you have made in the banking institution. Once you have posted the recurring deposit and consequently if you die an untimely death, your beneficiary would be able to derive benefit directly from the deposit that you have made.
Tax Benefits on SBI Recurring Deposit
In case the interest earned by you across all your recurring deposits across all branches of SBI in a year exceeds 10,000, the bank must deduct TDS at 10.3%. In case your IT PAN is not updated in the SBI records, it must deduct twice the TDS at 20.6%. So, do remember to update your PAN on your RD. Now, you would need to add the interest income on all your SBI RD’s and other RD’s to your taxable income for the year. Based upon your tax bracket, income tax is payable on this income. You must estimate the interest income and all your other incomes and, based on this, pay advance tax on advance tax payment dates (15th Sep, 15th Dec, 15th March, and 31sMarch).
SBI Bank News Snippets
SBI recorded digital transactions as high as 67%
State Bank of India has recorded a considerable increase in its digital transactions. The bank reported 67% digital transaction in the post-Covid period from earlier 60% in the pre-Covid times. The increase is attributed to a hike in e-commerce due to covid induced lockdown which restricted the movement.
SBI goes easy on a plan to spin off Yono
State Bank of India is going slow on its plans to divest its stake in digital platform Yono, YONO is a digital initiative by SBI and stands for “You Only Need One”. YONO helps customers to apply for retail loans like home, personal, gold, two-wheeler, and car loans along with business and mudra loans digitally. Further, it also helps in investing in FD and RDs. The special digital tool also provides the facility to apply for the current and savings account.
SBI Recurring Deposit Interest Rates – FAQs
✅ What Is The Highest Interest Earned On SBI Recurring Deposit?
You can earn a maximum interest of 5.40% on an SBI recurring deposit.
✅ Are There Any Extra Benefits For Senior Citizens On Fixed Deposit Of SBI?
Yes, senior citizens get the extra benefit of 0.8% interest rates on their RD in SBI
Table of Contents
- 1 SBI RD Interest Rates
- 2 SBI Recurring Deposit Features
- 3 SBI Bank RD Interest Rates 2021
- 4 Types of SBI Bank Recurring Deposit Schemes
- 5 Documents required to open Recurring Deposit Account in SBI
- 6 SBI Recurring Deposit Rates – Premature Withdrawal
- 7 Calculation of SBI Recurring Deposit Interest Rates
- 8 RD Account Opening Process at SBI Bank
- 9 Nomination Facility on SBI RD
- 10 Tax Benefits on SBI Recurring Deposit
- 11 SBI Bank News Snippets
- 12 SBI Recurring Deposit Interest Rates – FAQs