SBI Har Ghar Lakpati RD: How much you should invest every month to get Rs 1 lakh
The State Bank of India (SBI) has launched a new recurring deposit scheme which will enable customers to accumulate Rs 1 lakh or above in their accounts by depositing small amounts every month and become ‘Lakhpati’ on maturity of the deposit.ET Year-end Special Reads
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What is an RD Account?
According to the SBI website, “An RD (recurring deposit) account is a deposit account where you deposit a fixed sum of money each month. The monthly fixed amount and tenure are chosen by you when you open the account. The fixed amount you deposit each month earns interest which is compounded quarterly.”PNB adds 2 new FD tenures: These citizens can get up to 8.05% on fixed deposits; check details
Who can invest in new recurring deposit ‘Lakhpati’ scheme?
All resident individuals can open an account singly or jointly. A minor who is above 10 years of age and can sign legibly can open an account alone otherwise he/she can open the account with his or her parents/ legal guardian.What is the period of investment?
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What is the penalty for premature closure?
For all tenors, the penalty for early withdrawal will be 0.50% if the payment amount is less than Rs 5 lakh (Principal). If payment amount is above Rs 5 lakh, the applicable penalty will be 1% (all tenors).
According to the SBI website, “Interest Rate shall be 0.50% or 1% below the rate of interest applicable at the time of opening of deposits, for the period the deposit remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower. However, no interest will be paid on deposits which remain for a period less than 7 days.”
What happens in case of default in depositing intalment ?
If the recurring deposit installment is not paid on time, the penalty is Rs 1.50 for every 100 recurring deposit per month for RD tenors of five years or less. For RD tenors longer than five years, the penalty payable is Rs 2.00 for every Rs 100/-per month.As per the SBI website, the information provided below is only for illustration purposes and may vary based on the options chosen by the customer and the interest rates applicable at the time of placing the deposit. The installment amount has been computed based on the current interest rates.
It should be noted that the interest rate offered for a three and four-year tenure is 6.75% for general residents and 7.25% for senior citizens. For other tenures, the interest rate is 6.50% for regular citizens and 7% for seniors citizens.
How much should a general/regular citizen invest every month to get Rs 1 lakh?
If a regular (non-senior) citizen invests Rs 2,500 every month for three years, with an interest rate of 6.75%, he/she can get Rs 1 lakh at the end of the term.If a regular citizen invests Rs 1,810 every month for four years, with an interest rate of 6.75%, he/she can get Rs 1 lakh at the end of the term.
If a regular citizen invests Rs 1,407 every month for five years, with an interest rate of 6.50%, he/she can get Rs 1 lakh at the end of the term.
How much should a senior citizen invest every month to get Rs 1 lakh ?
If a senior citizen invests Rs 2,480 every month for three years, with an interest rate of 7.25%, he/she can get Rs 1 lakh at the end of the term.If a senior citizen invests Rs 1,791 every month for four years, with an interest rate of 7.25%, he/she can get Rs 1 lakh at the end of the term.
If a senior citizen invests Rs 1,389 every month for three years, with an interest rate of 7%, he/she can get Rs 1 lakh at the end of the term.
What happens if installment is not made?
If six consecutive installments are not received, the account will be closed prematurely, and the amount will be paid or transferred to the account holder's linked Savings Bank account with SBI.
Table A - RD Amount
| Period → Years | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| General Public | ₹ 2,500 | ₹ 1,810 | ₹ 1,407 | ₹ 1,133 | ₹ 938 | ₹ 793 | ₹ 680 | ₹ 591 |
| Senior Citizen | ₹ 2,480 | ₹ 1,791 | ₹ 1,389 | ₹ 1,115 | ₹ 921 | ₹ 776 | ₹ 663 | ₹ 574 |
| Staff | ₹ 2,460 | ₹ 1,772 | ₹ 1,370 | ₹ 1,097 | ₹ 903 | ₹ 759 | ₹ 647 | ₹ 559 |
| Staff Senior | ₹ 2,441 | ₹ 1,753 | ₹ 1,352 | ₹ 1,079 | ₹ 886 | ₹ 742 | ₹ 631 | ₹ 543 |
| Citizen |
Table B - Interest rate
| Period → Years | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| General Public | 6.75% | 6.75% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
| Senior Citizen | 7.25% | 7.25% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| Staff | 7.75% | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| Staff Senior | 8.25% | 8.25% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
| Citizen |
- $ Instalment amount has been calculated on existing rate of interest as shown in Table B
- This is subject to change with change in rate of interest.
- The above chart is illustrative only, depending on the requirement of customers (i.e maturity amount of Rs 1 /Rs 2 / Rs 3 / Rs 4 lakh, etc), amount of instalments to be advised to customer.
This story originally appeared on: India Times - Author:Faqs of Insurances
