SBI Introduces Har Ghar Lakhpati RD Scheme

The State Bank of India (SBI) has launched a new recurring deposit program, Har Ghar Lakhpati RD, aimed at helping customers build a corpus of Rs 1 lakh or more through regular monthly deposits. This initiative is designed to assist individuals in achieving their financial goals by the time the deposit matures.

Recurring Deposit account is a deposit account where you deposit a fixed sum of money each month. (AI image)

How Does the Recurring Deposit Work?

An RD (recurring deposit) account allows you to deposit a fixed sum of money each month, chosen by you at the time of opening the account. The deposited amount earns interest, which is compounded quarterly, helping you grow your savings over time.

Investment Details and Interest Rates

For general residents, the interest rate is 6.75% for three and four-year terms, and 6.50% for other tenure periods. Senior citizens enjoy higher rates of 7.25% and 7% respectively. Early withdrawals attract penalties, so it's essential to consider your financial planning before investing.

For regular citizens aiming to accumulate Rs 1 lakh:

• Invest Rs 2,500 monthly for three years at 6.75% interest
• Invest Rs 1,810 monthly for four years at 6.75% interest
• Invest Rs 1,407 monthly for five years at 6.50% interest

Important Considerations

Premature closure of the account occurs if six consecutive installments remain unpaid, with penalties applied for early withdrawals. It's crucial to stay informed about the latest interest rates and investment terms to maximize your savings potential.