Recurring Deposit is a popular savings scheme that offers a fixed rate of interest on the investment amount in regular installments. At the end of the RD period, the customer receives the maturity amount.
SBI RD Interest Rate: It seems that the era of low interest is going to be imposed soon. State Bank of India, the country’s largest public sector bank, has increased the interest rates on Recurring Deposit (RD) account. SBI has decided to offer RD interest rates from 5.1 per cent to 5.4 per cent and additional interest rates of 50 basis points for senior citizens.
Recurring Deposit is a popular savings scheme that offers a fixed rate of interest on the investment amount in regular installments. At the end of the RD period, the customer receives the maturity amount. SBI has revised the interest rate on Recurring Deposits account.
State Bank of India allows opening of RD account with minimum amount of Rs.100. Here you can open an RD account for a period ranging from 6 months to 10 years. The interest rate on RD is similar to that of Fixed Deposit (FD) and higher than that of Savings Account.
SBI RD Account
The increased interest rates on State Bank of India RD account are applicable from January 15, 2022. SBI’s new RD interest rates are from 5.1 percent to 5.4 percent. For senior citizens, an additional interest of 50 basis points will be available on the RD account.
In SBI, 5.1 percent interest will be available on RD of 1 to 2 years. Interest will also be available at 5.1 percent on RD of two to 3 years and 5.3 percent on RD account of 3 to 5 years. Interest of 5.4% is being given on FDs with maturities of 5 years and up to 10 years.
How to open RD account
You can open this account by visiting a branch of State Bank of India. Now online RD account can also be opened sitting at home. If you are taking advantage of SBI netbanking facility, then RD account can be opened through net banking also.
Premature Withdrawal Rules
You can withdraw money from your RD account even before maturity. If you withdraw money before maturity, there will be a small penalty. State Bank of India does not allow partial withdrawal of RD.
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