SBI’s New Recurring Deposit Scheme: Become a Lakhpati
The State Bank of India (SBI) has launched an innovative recurring deposit program called “SBI Har Ghar Lakhpati RD.” This initiative aims to help customers accumulate a corpus of Rs 1 lakh or more through regular monthly deposits. The scheme is designed for all resident individuals, making it accessible for both single and joint accounts. Children above the age of 10 can open accounts independently, while younger children will need a parent or legal guardian as a joint account holder. The investment duration for this scheme ranges from 3 to 10 years, providing flexibility for various financial goals.
Understanding Recurring Deposits
A recurring deposit (RD) is a type of savings account where individuals deposit a fixed sum of money every month. According to SBI’s official website, the monthly deposit amount and the tenure are chosen by the account holder at the time of opening the account. The interest earned on these deposits is compounded quarterly, making it an attractive option for savers.
However, it is important to note that early withdrawal from an RD account incurs penalties. For amounts below Rs 5 lakh, a penalty of 0.50% applies, while amounts exceeding Rs 5 lakh attract a penalty of 1%. These penalties are applicable across all tenure periods, which means that account holders should be cautious about withdrawing funds before maturity.
This scheme not only encourages disciplined savings but also offers a secure way to grow wealth over time. With the current economic climate, having a reliable savings plan is more crucial than ever.
Monthly Investment Requirements for Rs 1 Lakh
For regular citizens aiming to accumulate Rs 1 lakh, the amount to be deposited monthly varies based on the tenure and interest rates. The interest rate for general residents is 6.75% for three and four-year terms, while it is 6.50% for longer tenures.
Here are some examples of monthly investments required to reach the Rs 1 lakh goal:
- Three Years: A monthly deposit of Rs 2,500 at 6.75% interest will yield Rs 1 lakh.
- Four Years: A monthly deposit of Rs 1,810 at 6.75% interest will also yield Rs 1 lakh.
- Five Years: A monthly deposit of Rs 1,407 at 6.50% interest will achieve the same outcome.For senior citizens, the interest rates are slightly higher, with 7.25% for three and four-year terms. This means that a senior citizen would need to invest Rs 2,480 monthly over three years to reach Rs 1 lakh. Alternatively, they could invest Rs 1,791 monthly for four years at the same interest rate.
Key Considerations for SBI Har Ghar Lakhpati RD
While the SBI Har Ghar Lakhpati RD scheme offers many benefits, there are important considerations to keep in mind. If an account holder fails to make six consecutive installments, the account may face premature closure. In such cases, the accumulated amount will automatically transfer to the linked SBI Savings Bank account.
Additionally, there are penalties for premature closure. The interest rate applicable will be reduced by 0.50% or 1%, depending on the amount deposited and the duration for which it remained with the bank. For delayed payments, a penalty of Rs 1.50 per Rs 100 is charged for deposits up to five years, while a higher penalty of Rs 2.00 per Rs 100 applies for longer tenures.
Overall, the SBI Har Ghar Lakhpati RD scheme is an excellent opportunity for individuals looking to secure their financial future through disciplined savings. By understanding the requirements and penalties, account holders can make informed decisions that align with their financial goals.
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