What is SBI Recurring Deposit (RD)?

State Bank of India (SBI) Recurring Deposit (RD) is a savings scheme that allows you to make regular deposits on a monthly basis. It is a good option for those who want to save money consistently over time and earn a higher interest rate than a savings account. Here are some key details about SBI RD:

1. Minimum and maximum deposit amount: The minimum deposit amount for SBI RD is typically INR 100 per month, although this may vary depending on the bank’s location. There is no maximum limit on the deposit amount.
2. Tenure: The tenure of an SBI RD can range from 6 months to 10 years, depending on your choice.
3. Interest rate: The interest rate on an SBI RD is typically higher than the interest rate on a savings account. The current interest rate for SBI RD is 5.4% per annum for a tenure of 5 years or less and 5.5% per annum for a tenure of more than 5 years.
4. Premature withdrawal: You can withdraw your SBI RD prematurely, but you may be required to pay a penalty. The premature withdrawal penalty will depend on the amount of time elapsed since the RD’s beginning.
5. Loan against RD: You can get a loan against your SBI RD by pledging it as collateral. The loan amount will depend on the amount of your RD, as well as the bank’s policies.

By opening an SBI RD, you can save money consistently over time and earn a higher interest rate than a savings account. It is a secure and convenient way to grow your savings and achieve your financial goals.