SBI Revises Interest Rates On Recurring Deposits: Check New Rates Here

Recurring deposit (RD) is an appealing instrument for debt investors, particularly the salaried class, because it allows investors to make monthly installments, similar to mutual fund SIPs. As a result, the country's largest lender, State Bank of India (SBI), allows customers to create a recurring deposit account for a period of 12 to 120 months. Customers can establish a recurring deposit at any bank branch, with a minimum deposit amount of Rs. 100/- per month (then in multiples of Rs. 10/-) with no maximum limit. As a reminder to depositors, the bank has amended its recurring deposit interest rates, which are effective as of January 15, 2022. The new rates are briefly outlined below.

SBI Recurring Deposit Interest Rates 2022

SBI is providing the following rates on recurring deposits as of January 15, 2022. And the interest rates are the same as applicable to the term deposits.

Tenor	Existing Rates for Public w.e.f. 08.01.2021	Revised Rates For Public w.e.f. 15.01.2022	Existing Rates for Senior Citizens w.e.f. 08.01.2021	Revised Rates for Senior Citizens w.e.f. 15.01.2022
7 days to 45 days	2.9	2.9	3.4	3.4
46 days to 179 days	3.9	3.9	4.4	4.4
180 days to 210 days	4.4	4.4	4.9	4.9
211 days to less than 1 year	4.4	4.4	4.9	4.9
1 year to less than 2 year	5	5.1	5.5	5.6
2 years to less than 3 years	5.1	5.1	5.6	5.6
3 years to less than 5 years	5.3	5.3	5.8	5.8
5 years and up to 10 years	5.4	5.4	6.2	6.2
Source: Bank Website

Note

On recurring deposit accounts if three or more consecutive installments have been missed and the account has not been regularised, a service fee of Rs. 10/- will be imposed. The penalty charges for non-deposit of monthly Instalments are Rs. 1.50 per Rs. 100/- per month for accounts with maturity duration of less than 5 years and Rs. 2.00 per Rs. 100/- per month for accounts with a maturity period of more than 5 years. If 6 straight installments are not made, the account will be terminated prematurely and the remaining amount will be refunded to the account of the depositor.