SBI recurring deposit (RD) investment: How calculate to maturity value

New Delhi: State Bank of India (SBI), the nation’s largest bank by asset size, offers the facility of recurring deposit (RD) with which individuals can begin monthly savings and earn interest over it. The interest in the recurring deposits is compounded on a quarterly basis. State Bank of India allows a minimum of Rs 100 as the monthly deposit, a person can increase the quantum of monthly deposit in multiples of Rs 10, thereafter. The minimum period for recurring deposit is 12 months and the maximum is 120 months.

Moreover, SBI has not placed an upper limit on monthly deposits and the bank offers the same interest rate on recurring deposits which is applicable on bank’s fixed deposits of the same tenure. A person can avail loan and overdraft facilities up to 90 per cent of the balance held in a recurring deposit account.


State Bank of India has also formulated a maturity value calculator with which individuals can ascertain the maturity amount for a recurring deposit, fixed deposit account by filling in the mandatory details such as principal amount, the annual rate of interest and duration of the account. According to SBI, the maturity calculator is provided only as general self-help planning tools, the interest and maturity values are indicative only. A person can see the maturity value calculator at

State Bank of India charges a penalty for non-deposit of monthly instalments where the depositors fail to pay an instalment for a particular month in a year. SBI charges Rs 1.5 per Rs 100 for RD account of period 5 years or less and Rs 2 per Rs 100 for RD account period above 5 years.

A service charge will be levied on Recurring Deposit accounts paid out on or after the date of maturity, wherein there is default in payment of three or more consecutive instalments and the account has not been regularized, SBI said. A service charge of Rs.10/- will be levied on such accounts at the time of payment at or after maturity. SBI recurring deposit account will be prematurely closed and the balance will be paid to the account holder in case an individual misses six consecutive instalments.




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