Credit for investment in India has numerous schemes available. One such scheme which boasts much popularity is the recurring deposit scheme of SBI (State Bank of India). This scheme is perfect for those who want to cultivate a huge amount after some time of saving a small portion regularly. This State Bank of India trusted bank offers an excellent scheme to all customers for investment that is both safe and profitable.
What Is The SBI RD Scheme?
The SBI RD scheme is a sort of fixed deposit account where in a customer has to make a particular amount as a deposit every month. This sum can be a minimum of Rs 10 but can go up to an unlimited maximum. The period of this scheme ranges from six months to ten years. Hence customers can select the timeframe of either short or long saving as per their convenience.
Interest Rates And Benefits
The interest rates applicable under this scheme change from time to time, but they are higher than those of ordinary savings accounts. Currently, while the interest rate for SBI RD scheme is about 6.50% to 7.50% per annum (depends on the period and bank policy), there is compound interest over time since the bank calculates interest quarterly and adds it along with deposit amount.
Features Of The Scheme
- Regular investment savings: This plan encourages you to save fixed amounts every month.
- Flexibility: Customers can choose the deposit amount and tenure as per their income and needs.
- Safety: SBI is a government bank, so this scheme is very secure and trustworthy.
- Tax benefit: The interest accrued from RD is taxable, yet one can choose a tenure of more than 5 years for tax savings.
Application Process
It is quite easy to apply for the SBI RD scheme. You can apply for this scheme by visiting the SBI branch or through online banking. Required documentation includes identity proof, address proof and passport size signed photo.
SBI RD scheme is a wonderful scheme for those who save regularly so that they can build a strong financial base in the future. This scheme is very safe as well as provides good returns. Those who also want to grow their savings must get SBI RD scheme.