Investing ₹10,000 monthly in a State Bank of India (SBI) Recurring Deposit (RD) account can be a smart way to grow your savings over time. If you are looking to accumulate a maturity amount of ₹16,89,871, you must choose the right tenure based on current SBI RD interest rates.
SBI RD Scheme
| Feature | Details |
|---|---|
| Bank | State Bank of India (SBI) |
| Deposit Amount | ₹10,000 per month |
| Interest Rate | Up to 7.00% per annum |
| Maturity Amount | ₹16,89,871 |
| Tenure Required | Approximately 10 years (120 months) |
| Senior Citizen Benefits | Additional 0.50% interest rate |
| Loan Against RD | Available (Up to 90% of the deposit balance) |
| Tax Deducted at Source (TDS) | Applicable as per income tax rules |
| Official Website | SBI RD Scheme |
Investing in SBI RD with ₹10,000 per month is a safe and reliable way to grow wealth over time. To reach ₹16,89,871, you need to stay invested for about 10 years at 6.50% interest per annum. SBI’s RD scheme offers flexibility, affordability, and loan benefits, making it ideal for long-term financial planning. Use tools like the SBI RD Calculator to plan your savings efficiently.
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Understanding SBI RD Scheme Interest Rates
As of March 2025, SBI offers the following interest rates on recurring deposits:
- 1 year to less than 2 years: 6.80% per annum
- 2 years to less than 3 years: 7.00% per annum
- 3 years to less than 5 years: 6.50% per annum
- 5 years to 10 years: 6.50% per annum
Senior citizens get an additional 0.50% interest on their deposits.
SBI RD Scheme: How Long Should You Invest to Reach ₹16,89,871?
To calculate the tenure required to accumulate ₹16,89,871, let’s assume a monthly deposit of ₹10,000 with an interest rate of 6.50% per annum (for deposits of 5 years and above).
RD Maturity Calculation Formula
The formula to calculate the maturity amount in an RD account is:
Where:
- M = Maturity amount
- R = Monthly deposit amount
- i = Interest rate per quarter
- n = Total number of quarters
Using an SBI RD Calculator, we find that to accumulate ₹16,89,871, you need to invest ₹10,000 per month for approximately 10 years (120 months).
Pro Tip: Use the SBI RD Calculator to personalize your deposit plan and get an exact calculation.
Step-by-Step Guide to Open an SBI RD Scheme Account
Opening a Recurring Deposit (RD) account with SBI is simple. Here’s how you can do it:
Online via SBI Net Banking
- Log in to SBI Net Banking.
- Click on “Deposits” > “Recurring Deposit”.
- Enter the monthly deposit amount and tenure.
- Review the interest rate and estimated maturity amount.
- Confirm and authenticate using OTP.
Through SBI YONO App
- Open the SBI YONO App.
- Navigate to “Deposit Accounts” > “Open Recurring Deposit”.
- Fill in the necessary details and submit.
By Visiting an SBI Branch
- Fill out the RD Account Opening Form.
- Submit KYC documents (Aadhaar, PAN, etc.).
- Deposit the first installment in cash or transfer online.
Key Features & Benefits of SBI RD Scheme
Flexible Tenure: Choose between 12 months to 10 years. Affordable Minimum Deposit: Start with just ₹100 per month. Loan Facility: Avail up to 90% of the RD balance as a loan. Auto-Renewal Option: Seamless renewal upon maturity. TDS Deduction: As per Income Tax rules (submit Form 15G/15H to avoid TDS if eligible).
Also Check: SBI PPF Yojana: Deposit ₹30,000 and Get ₹8,13,642 After These Many Years
SBI RD Scheme (FAQs)
Can I withdraw my SBI RD amount before maturity?
Yes, premature withdrawal is allowed but may incur a penalty. The interest rate will be adjusted accordingly.
Is SBI RD a tax-saving investment?
No, SBI RD is not tax-free. The interest earned is taxable as per your income tax slab.
Can I increase or decrease my RD installment?
No, once you choose a monthly deposit amount, it remains fixed throughout the tenure.
What happens if I miss an RD installment?
A penalty will be charged for missed installments. If multiple installments are missed, SBI may close the RD account.
How to close an SBI RD account prematurely?
Log in to SBI Net Banking.
Navigate to the RD Account Section.
Click on “Close Account” and follow the instructions.
The amount will be credited to your linked savings account.
