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 over 10 who can clearly sign may open accounts independently, while younger ones require parents or legal guardians to be joint account holders. The investment duration ranges between 3 and 10 years.
What is a recurring deposit?
The SBI website defines recurring deposits as follows: “An RD (recurring deposit) account is a deposit account where you deposit a fixed sum of money each month. When you open the account, you choose the monthly fixed amount and tenure. The fixed amount you deposit each month earns interest, 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.
SBI Har Ghar Lakhpati RD: How much should a regular citizen invest monthly 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 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
| Years | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| General Public | ₹ 2,500 | ₹ 1,810 | ₹ 1,407 | ₹ 1,133 | ₹ 938 | ₹ 793 | ₹ 680 | ₹ 591 |
| Senior Citizen | ₹ 2,480 | ₹ 1,791 | ₹ 1,389 | ₹ 1,115 | ₹ 921 | ₹ 776 | ₹ 663 | ₹ 574 |
| Staff | ₹ 2,460 | ₹ 1,772 | ₹ 1,370 | ₹ 1,097 | ₹ 903 | ₹ 759 | ₹ 647 | ₹ 559 |
| Staff Senior Citizen | ₹ 2,441 | ₹ 1,753 | ₹ 1,352 | ₹ 1,079 | ₹ 886 | ₹ 742 | ₹ 631 | ₹ 543 |
RD Interest Rate
| Years | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| General Public | 6.75% | 6.75% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
| Senior Citizen | 7.25% | 7.25% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| Staff | 7.75% | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| Staff Senior Citizen | 8.25% | 8.25% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
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.
SBI Har Ghar Lakhpati RD: How much should senior citizens invest monthly to get Rs 1 lakh ?
- A senior citizen must deposit Rs 2,480 monthly over three years at 7.25% interest to receive Rs 1 lakh upon maturity.
- Alternatively, to achieve the same outcome, they can invest Rs 1,791 monthly for four years at 7.25% interest or Rs 1,389 for three years at 7% interest.
SBI Har Ghar Lakhpati RD: Important Things To Know
The account faces premature closure if six consecutive instalments 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 that remain for less than 7 days.”
Penalties apply to delayed recurring deposit instalments. 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.
