The State Bank of India presents a diverse array of deposit schemes catering to both short and long-term investment needs of individuals. As the largest bank in India, SBI's schemes boast decades of delivering commendable returns and performance, earning them the trust of consumers.

SBI offers appealing RD interest rates to its customers, with a minimum deposit requirement starting from just Rs. 100. Customers can open an RD account for a duration ranging from 7 days to 10 years, aligning with their financial objectives.

For deposits below Rs. 2 crores, SBI provides RD interest rates at 5.00% to 5.40%. Additionally, senior citizens receive an extra interest rate of 0.50% on the standard interest rates.

Eligibility Criteria

Eligibility Requirements for Initiating an RD Account with SBI:

To commence an RD with SBI Bank, individuals must meet the following eligibility criteria:

Only Indian residents or Hindu Undivided Family members are eligible to open a recurring deposit account.

Non-Residential Indians can also establish an RD account with SBI, provided they apply for a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account.

For minors, an RD account can be initiated under the supervision of their legal guardians, ensuring that their financial affairs are managed responsibly.

Documents Required

To initiate an SBI RD account, you need to furnish any of the following documents as listed below:

Identity Verification:

1. Voter ID card or Aadhaar card

2. PAN card

3. Government ID card

4. Ration card

5. Senior citizen ID card

Address Verification:

1. Passport

2. Telephone or electricity bill

3. Bank account statements with a cheque

4. Certificate or ID card issued by the post office

Types of SBI Recurring Deposit Schemes

Currently, SBI offers three varieties of recurring deposits: the regular recurring deposit, the SBI holiday savings account, and the SBI Flexi Deposit Scheme. Let's delve into each one:

• SBI Regular Recurring Deposit:

This is the fundamental and most popular recurring deposit account provided by the bank. It can be initiated with a minimum monthly deposit of Rs. 100 or more, with flexible tenures ranging from 1 year to 10 years.

• SBI Holiday Savings Account:

Tailored for travel enthusiasts, this savings scheme allows individuals to save for a travel package offered by Thomas Cook. Upon selecting a Thomas Cook Holiday savings account package while traveling, the total amount is divided into 13 EMIs. These EMIs are then deposited into the SBI Holiday Savings Account over a span of 12 months, with Thomas Cook providing the 13th EMI after applying the relevant interest rate.

• SBI Flexi Deposit Scheme:

This scheme provides flexibility in deposit amounts, allowing individuals to alter the deposit amount each month instead of adhering to a fixed sum. A minimum annual deposit of Rs. 5000 is required, capped at Rs. 50,000 annually. Deposits can be made for periods ranging from 5 to 7 years.

SBI Bank RD Premature Withdrawal Facility

SBI provides the option for its customers to prematurely withdraw funds from their RD account. Withdrawal before maturity incurs a nominal penalty. However, partial withdrawals from recurring deposits are not permitted by SBI.

To Close SBI RD Account Online:

1. Log in to your net banking account using your User ID and password on SBI's official website.

2. Navigate to 'e-TDR/e-STDR (FD)' under 'Fixed Deposit'.

3. Select e-RD (Recurring Deposit) from the 'kind of deposit account' drop-down menu and click 'Proceed.'

4. A new page will appear, showing various services related to your RD account. Click 'Close A/c' and then 'Proceed.'

5. Your RD account details will be displayed. Enter 'Close RD account' in the 'Remarks' field and click 'Proceed.'

6. Input the 'High-Security Password' and click 'Confirm.'

7. You will receive confirmation that your RD account has been successfully closed.

Tax Exemptions on SBI RD

Tax deductions at source (TDS) are applicable to recurring deposit accounts. The deduction amount is determined based on the Customer Information File (CIF) value. However, for the SBI Holiday Saving Account, the deduction amount cannot be determined in advance.

In general, if your annual interest income from FD and RD accounts across all branches exceeds Rs. 40,000 per financial year, the bank will apply TDS. For senior citizens, this threshold is Rs. 50,000 per financial year.

If your annual income does not surpass the basic exemption limit, you can submit Form 15G/15H to request the bank not to apply TDS. Otherwise, TDS will be implemented according to the income tax regulations.

How to Open a Recurring Deposit Account in SBI?

There are two methods to initiate a recurring deposit account with SBI:

1. Visit the nearest SBI branch, complete an RD opening form, and furnish the necessary documents.

2. If you are an existing SBI customer with an active internet banking account, log in to your online account using your net banking credentials and promptly open an e-RD. However, if you do not hold an SBI account, you must first open one. Once your account is active, you can utilize the net banking facility to open an e-RD.

How to Calculate the Maturity Amount on SBI Bank RD?

The primary objective of opening an SBI RD account is to accrue additional savings over time. The maturity amount is contingent upon various factors including the initial deposit, interest rate, RD tenure, TDS deductions, and similar variables. The simplest method to compute the interest on your recurring deposit is by utilizing an SBI RD calculator, which is readily available online.

The formula employed to determine the total accumulated amount upon maturity is A = P(1+r/n) ^ nt, where:

• A represents the final amount

• P denotes the principal

• r signifies the annual interest rate

• n indicates the frequency of interest compounding

• t stands for the tenure