In case you are looking for a scheme to invest your monthly savings, State Bank of India’s Recurring Deposit scheme may help you.
According to SBI’s official website, “Recurring Deposit is a product to provide a person with an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time.”
A recurring deposit account should be opened for a minimum of twelve months. However, it can go on till a maximum of one twenty months. A minimum amount of Rs 100 needs to be deposited every month.
Rate of Interest
As per the website, the rate of interest provided is 5.3 percent for account with the maturity period of 3-5 years. Whereas, it will be 5.4 percent for account with maturity period of 5-10 years.
Penalty Charges
A penalty will be levied from the customers who fail to deposit the monthly amount.
- For account with maturity period 5 years and less Rs 1.50 per Rs 100 per month
- For account with maturity period above 5 years, Rs 2.00 per Rs 100 per month.
In case six consecutive installments are not received, the account shall prematurely be closed and balance paid to the account holder.
The website further states, “A service charge of Rs. 10/- will be levied on Recurring Deposit accounts paid out on or after the date of maturity, wherein there is default in payment of three or more consecutive installments and the account has not been regularised.”
The rate applicable to all Senior Citizens of age 60 years and above will be 0.50% above the applicable rate.
For more details about term and conditions, customers can visit their nearest SBI branch or the website.
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