SBI RD Scheme : Saving for the future doesn’t have to be complicated. The SBI Recurring Deposit (RD) scheme offers a safe, reliable, and disciplined way to build wealth over time. With consistent monthly deposits, you can earn handsome returns thanks to the power of compound interest. Want to know how you can grow your money into ₹2,48,465? Here’s a detailed guide.
What is the SBI RD Scheme?
The SBI RD Scheme is a savings plan offered by the State Bank of India that allows individuals to deposit a fixed amount every month for a predetermined period. It is ideal for salaried individuals, students, and anyone looking to create a regular saving habit.
Key highlights:
- Safe and government-backed investment
- Fixed monthly deposits
- Attractive interest rates
- Minimum deposit as low as ₹100 per month
- Flexible tenure from 12 months to 120 months
How Does the SBI RD Work?
In the SBI RD scheme, you choose the deposit amount and tenure. Interest is compounded quarterly and added to your principal. At the end of the term, you receive the maturity amount – which is your total deposit plus the accumulated interest.
Here’s what makes the RD scheme attractive:
- Guaranteed returns
- No market risks
- Encourages disciplined saving
- Can be started easily online via SBI’s YONO app or internet banking
Example: How to Get ₹2,48,465 from SBI RD
To achieve a maturity amount of ₹2,48,465, you need to deposit a certain fixed amount monthly for a specific period at the prevailing interest rate.
Assuming an average interest rate of 6.5% per annum (subject to change), here’s how your money grows:
Table 1: Monthly Deposit vs Maturity Value (Tenure: 5 Years, Interest Rate: 6.5%)
| Monthly Deposit | Total Deposited | Interest Earned | Maturity Amount |
|---|---|---|---|
| ₹2,500 | ₹1,50,000 | ₹24,156 | ₹1,74,156 |
| ₹3,000 | ₹1,80,000 | ₹28,987 | ₹2,08,987 |
| ₹3,500 | ₹2,10,000 | ₹33,819 | ₹2,43,819 |
| ₹3,600 | ₹2,16,000 | ₹34,877 | ₹2,50,877 |
| ₹3,700 | ₹2,22,000 | ₹35,935 | ₹2,57,935 |
| ₹3,800 | ₹2,28,000 | ₹36,993 | ₹2,64,993 |
| ₹4,000 | ₹2,40,000 | ₹39,110 | ₹2,79,110 |
So, to reach close to ₹2,48,465, you can invest ₹3,500 per month for 5 years. The exact interest and maturity value might vary slightly depending on the prevailing rate and compounding frequency.
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Interest Rates on SBI RD Scheme (As of 2025)
The interest rates on RDs vary based on tenure and customer type (regular vs senior citizen).
Table 2: Current SBI RD Interest Rates
| Tenure | Regular Customers | Senior Citizens |
|---|---|---|
| 1 Year | 6.80% | 7.30% |
| 2 Years | 6.80% | 7.30% |
| 3 Years | 6.75% | 7.25% |
| 4 Years | 6.75% | 7.25% |
| 5 Years | 6.50% | 7.00% |
| 6-10 Years | 6.50% | 7.00% |
| Tax Saver RD | 6.50% | 7.00% |
Note: Interest rates are subject to change as per RBI guidelines and SBI’s internal policies.
Features & Benefits of SBI RD Scheme
- Low Investment Start: Begin with just ₹100/month.
- Flexible Tenure: Choose from 1 year to 10 years.
- Loan Facility: Avail up to 90% loan against RD balance.
- Premature Withdrawal: Allowed with nominal penalty.
- Online Access: Easily manage RD account through internet banking or YONO app.
Eligibility & Documents Required
Anyone who fulfills the basic banking KYC criteria can open an RD account. This includes:
- Resident individuals
- Minors (via guardian)
- HUFs (Hindu Undivided Families)
- Senior Citizens
Required Documents:
- Aadhaar Card
- PAN Card
- Passport-sized Photograph
- Address Proof
- Existing SBI Savings Account
How to Open an SBI RD Account?
You can open your SBI RD account both online and offline.
Online Method:
- Login to SBI Internet Banking or YONO App
- Go to “e-RD” section
- Select tenure and deposit amount
- Confirm and submit
Offline Method:
- Visit your nearest SBI branch
- Fill out RD opening form
- Submit KYC documents
- Deposit the first installment
Tax Implications on RD Investment
- TDS: Interest income above ₹40,000 (₹50,000 for seniors) in a financial year is subject to TDS at 10%.
- Taxability: Interest earned is added to your total income and taxed as per your slab.
- You can submit Form 15G/15H to avoid TDS if your income is below taxable limits.
SBI RD vs Other Savings Options
Table 3: Comparison with Other Savings Instruments
| Feature | SBI RD | Fixed Deposit | Mutual Funds | PPF |
|---|---|---|---|---|
| Risk Level | Low | Low | Medium to High | Low |
| Returns | Fixed (~6.5%) | Fixed (~7%) | Market-Linked | Fixed (7.1%) |
| Tenure | 1-10 Years | 7 Days – 10 Yr | Flexible | 15 Years |
| Liquidity | Medium | Medium | High | Low |
| Tax Saving | No | Only Tax Saver | ELSS (Yes) | Yes |
Who Should Consider the SBI RD Scheme?
This plan is best suited for:
- Individuals with a fixed monthly income
- First-time investors
- People who want safe, assured returns
- Those looking to build an emergency or goal-based fund
Whether you’re saving for a wedding, vacation, or future education, SBI RD can help you achieve it, step-by-step.
The SBI RD scheme offers a powerful combination of safety, assured returns, and disciplined savings. If you’re looking to save regularly and earn a solid return without the ups and downs of the market, this scheme is worth considering. With just a few thousand rupees a month, you could walk away with ₹2,48,465 or more at maturity.
However, always consider your financial goals, other investment options, and tax liabilities before making a decision.
The maturity amount and interest calculations are indicative and subject to changes in interest rates. Please consult the official SBI website or your financial advisor before investing.