SBI Har Ghar Lakhpati RD: The State Bank of India (SBI) has introduced a new recurring deposit programme allowing customers to build a Rs 1 lakh corpus or more through regular monthly deposits, helping them become ‘Lakhpati’ when the deposit matures.
The scheme is available to all resident individuals for single or joint accounts. Children above 10 years who can sign clearly may open accounts independently, whilst younger ones require parents or legal guardians as joint account holders. The investment duration ranges between 3 to 10 years.
What is a recurring deposit?
The SBI website defines recurring deposit as follows: “An RD (recurring deposit) account is a deposit account where you deposit a fixed sum of money each month. The monthly fixed amount and tenure are chosen by you when you open the account. The fixed amount you deposit each month earns interest which is compounded quarterly.”
According to an ET report, early withdrawal attracts penalties of 0.50% for amounts below Rs 5 lakh (Principal) and 1% for amounts exceeding Rs 5 lakh, applicable across all tenure periods.
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SBI Har Ghar Lakhpati RD: How much should a regular citizen invest every month to get Rs 1 lakh?
The interest rate is 6.75% for general residents and 7.25% for senior citizens for three and four-year terms. Other tenure periods offer 6.50% for regular citizens and 7% for senior citizens.
For regular citizens aiming to accumulate Rs 1 lakh:
– A monthly investment of Rs 2,500 for three years at 6.75% interest yields Rs 1 lakh
– A monthly investment of Rs 1,810 for four years at 6.75% interest yields Rs 1 lakh
– A monthly investment of Rs 1,407 for five years at 6.50% interest yields Rs 1 lakh
RD Installment Amount
RD Interest Rate
The monthly payment shown in the first table is computed based on the prevailing interest rates listed in the second table. Both the monthly payment and interest rates are variable and may be revised.
According to SBI’s website, the presented details serve as examples and could differ based on customer preferences and prevailing interest rates during deposit placement. The instalment calculations reflect current interest rates.
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SBI Har Ghar Lakhpati RD: How much should senior citizens invest every month to get Rs 1 lakh ?
- A senior citizen needs to deposit Rs 2,480 monthly over three years at 7.25% interest to receive Rs 1 lakh upon maturity.
- Alternatively, they can invest Rs 1,791 monthly for four years at 7.25% interest, or Rs 1,389 monthly for three years at 7% interest to achieve the same outcome.
SBI Har Ghar Lakhpati RD: Important Things To Know
The account faces premature closure if six consecutive installments remain unpaid. In such cases, the accumulated amount transfers automatically to the account holder’s linked SBI Savings Bank account.
Penalty for premature closure: The SBI website states regarding interest rates: “Interest Rate shall be 0.50% or 1% below the rate of interest applicable at the time of opening of deposits, for the period the deposit remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower. However, no interest will be paid on deposits which remain for a period less than 7 days.”
In the event of delayed recurring deposit installments, penalties are applicable. For deposits up to five years, a charge of Rs 1.50 per Rs 100 monthly is levied. Deposits exceeding five years attract a higher penalty of Rs 2.00 per Rs 100 monthly.
