India’s largest public lender the State Bank of India (SBI) has lowered the rate of interest on medium-term and long term recurring deposits (RDs), as per the announcement on the bank’s official website.
For medium-term tenure, which is of 3-5 years, SBI has lowered the rate of interest marginally. The rate of interest offered by SBI is 6.75% for general citizens and 7.25% for senior citizens. Earlier, it was 6.8% for the general public and 7.30% for senior citizens.
For long-term investments, which is of 5-10 years, the rate of interest is 6.6% for others and 7.1% for senior citizens. Earlier, the bank was offering 6.85% and 7.35% interest rates, respectively, to the general public and senior citizens.
SBI Recurring Deposit
SBI RD interest rates vary between 6.4%-7% for the general public and an additional interest rate hike of 0.50 percentage points for senior citizens. SBI recurring deposits have terms ranging from 12 months to 120 months. The rate of interest on SBI’s 1-year recurring deposit remains unchanged at 6.4% for the general public and 6.9% for senior citizens.
The interest rate is 7% for general citizens and 7.5% for senior citizens, for the term period of 1-2 years. Earlier, the bank was offering 6.8% and 7.3% interest rates for the general public and senior citizens, respectively.
Special Features of SBI Recurring Deposit Interest Rates
Nomination facility is available
loan facility is available up to 90% of your RD amount
Visit any SBI branch to avail this service
TDS deductions are subject to the existing income tax rules as at the time of opening the RD account
SBI RD Account
SBI offers recurring deposit options to their customers to park their periodically generated surplus savings for a fixed tenure. A customer is required to make a deposit once into their recurring deposit account at the time of opening the account with the bank. The customer then makes periodic deposits and withdraws any money in the account during the tenure of the deposit.
Nomination facility is available.
Loan facility is available up to 90 percent of your RD amount.
The minimum tenure is 6 months for this RD.
The minimum deposit is Rs 1000 to be made in this account.
Holiday Saving RD
By using your RD to finance your holiday trip through Thomas Cook, now you can turn your holiday dream into a reality. SBI RD gives you an option to choose a holiday package from Thomas Cook and the cost of the chosen package will be divided into 13 installments which are paid by Thomas Cook.
The SBI RD also gives you an option to change the maturity instructions and move the funds to your linked Savings Account. The minimum tenure of this RD is 6 months. The minimum deposit to be made in this account is Rs 1000.