State Bank of India (SBI), India’s largest public sector bank, has launched an exciting Recurring Deposit (RD) scheme designed to help individuals accumulate wealth systematically. If you dream of becoming a millionaire through disciplined savings, SBI’s new RD scheme is a golden opportunity.
This scheme allows investors to deposit a fixed amount every month and earn guaranteed returns, making it a secure and risk-free investment option. But how does this scheme work, and how much should you invest to reach ₹10 lakh or more? Let’s explore.
What is the SBI New RD Scheme?
A Recurring Deposit (RD) is a type of savings plan where you deposit a fixed amount every month for a predefined tenure. The bank pays interest on the cumulative deposits, and at the end of the tenure, you receive the maturity amount.
Key Features of SBI’s RD Scheme
- Flexible Investment: You can start with as little as ₹100 per month.
- Multiple Tenure Options: Choose a deposit period between 12 months and 10 years.
- Guaranteed Returns: Interest rates are fixed and compounded quarterly.
- Premature Withdrawal Allowed: You can close your RD before maturity with a penalty.
- Loan Facility: You can take a loan against your RD balance.
How to Become a Millionaire with SBI RD?
To accumulate ₹10 lakh or more, you need to invest systematically in this RD scheme. Your final maturity amount will depend on three main factors:
- Monthly Deposit Amount
- Tenure (in years)
- Applicable Interest Rate
Below is an estimated investment breakdown to reach ₹10 lakh:
| Tenure | Monthly Deposit | Maturity Amount (Approx.) |
| 5 Years | ₹14,500 | ₹10,00,000 |
| 7 Years | ₹8,500 | ₹10,00,000 |
| 10 Years | ₹5,500 | ₹10,00,000 |
Note: The above figures are approximate and based on an average interest rate of 7% per annum. Actual maturity amounts may vary depending on SBI’s prevailing RD rates.
Step-by-Step Guide to Open an SBI RD Account
1. Eligibility Criteria
- Resident Individuals, including minors (under the guidance of a guardian), are eligible.
- Hindu Undivided Families (HUFs) can also invest.
- NRIs can open NRE/NRO RD accounts with SBI.
2. Methods to Open an RD Account
You can open an SBI RD account through:
- Online (via SBI Net Banking or YONO app)
- Offline (by visiting an SBI branch)
3. Required Documents
- Aadhaar Card & PAN Card (for KYC verification)
- Recent Passport-sized Photograph
- SBI Savings Account Details
- Address Proof (if different from Aadhaar)
4. Steps to Apply Online via SBI YONO App
- Log in to SBI YONO.
- Navigate to ‘Fixed Deposit & Recurring Deposit’.
- Select ‘Open Recurring Deposit’.
- Choose tenure, monthly deposit amount, and account.
- Confirm and submit the application.
Advantages of SBI’s New RD Scheme
1. Safe and Secure Investment
Being a government-backed institution, SBI offers a 100% secure savings environment.
2. Compounding Benefits
SBI compounds the interest quarterly, leading to higher returns over time.
3. No Large Initial Investment Needed
Unlike FDs, you don’t need a lump sum; you can start saving in small amounts.
4. Liquidity Option Available
If you need money urgently, SBI allows premature withdrawal with a nominal penalty.
5. Loan Against RD
SBI allows up to 90% of the RD balance as a loan, which helps in emergencies.
SBI New RD Scheme (FAQs)
1. Can I modify my monthly RD deposit amount?
No, the deposit amount remains fixed throughout the tenure. If you want to increase your savings, you must open a new RD account.
2. Is the interest earned on RD taxable?
Yes, interest earned is taxable under your applicable income tax slab. TDS (Tax Deducted at Source) at 10% applies if the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
3. Can I close my RD account before maturity?
Yes, but a penalty applies:
- If closed before 1 year, no interest is paid.
- After 1 year, a penalty of 0.50%-1% of interest rate is deducted.
4. Can I open multiple RD accounts?
Yes, you can open multiple RD accounts with different tenures and deposit amounts.
