The State Bank of India offers a highly trusted Recurring Deposit (RD) scheme that encourages disciplined saving while ensuring complete security. By investing even a small amount like ₹2,500 per month, investors can steadily grow their corpus and enjoy guaranteed returns from India’s largest public sector bank.
How SBI Recurring Deposit Works
The SBI RD allows investors to deposit a fixed sum every month for a tenure ranging from 1 to 10 years. Interest rates generally range between 6.5% to 7.1% per annum, compounded quarterly, which allows your savings to grow efficiently over time. This scheme is risk-free as it is backed by the government and avoids market fluctuations.
Returns on SBI RD
| Monthly Deposit | Tenure | Interest Rate (p.a.) | Principal Amount | Interest Earned | Maturity Amount |
|---|---|---|---|---|---|
| ₹2,500 | 3 Years | 7.1% | ₹90,000 | ₹7,000 | ₹97,000 |
| ₹2,500 | 5 Years | 7.0% | ₹1,50,000 | ₹18,000 | ₹1,68,000 |
| ₹2,500 | 10 Years | 6.8% | ₹3,00,000 | ₹57,000 | ₹3,57,000 |
The table above shows how small monthly contributions can grow into a meaningful corpus over different tenures. Longer-term RDs and reinvestment of interest further enhance returns, making SBI RD an attractive option for disciplined savers.
Benefits of SBI Recurring Deposit
- Safe and reliable investment backed by India’s largest public sector bank
- Easy online application via SBI Net Banking or YONO app
- Flexible tenure selection from 1 to 10 years
- Premature withdrawal and nomination facilities available
- Compounded quarterly interest ensures steady growth over time
Conclusion
The SBI Recurring Deposit is an ideal instrument for individuals seeking a secure and systematic way to accumulate savings. With just ₹2,500 per month, investors can build a financial cushion over a few years, enjoy predictable returns, and cultivate disciplined saving habits, making it a perfect choice for both beginners and seasoned savers.
Disclaimer
This article is for informational purposes only. Interest rates are subject to change as per SBI policies. Investors should check official SBI sources or consult a financial advisor before investing.
