In today's world, everyone is keen on investing to secure their future. The big question is where to invest your money. The State Bank of India (SBI) offers a compelling option through its Recurring Deposit (RD) scheme.
What is the SBI RD Scheme?
The SBI RD scheme is a savings plan designed for SBI customers. It allows account holders to invest a fixed amount of money regularly over a period ranging from 3 months to 10 years. This scheme is known for its attractive interest rates, which result in higher returns at maturity. Plus, being one of India's safest banks, SBI ensures that there is no risk of losing your invested money.
Interest Rates
The interest rates for the SBI RD scheme vary between 6.50% and 7%. Senior citizens enjoy an additional 0.50% interest, making their rates range from 7% to 7.5%.
Example: Investing Rs 10,000 Monthly
If you decide to deposit Rs 10,000 each month into your SBI RD account for 5 years, here's how your investment would grow:
- Monthly Deposit:Rs 10,000
- Annual Deposit:Rs 1,20,000
- Total Deposit Over 5 Years: Rs 6,00,000
- Interest Rate: 6.50%
After 5 years, your total deposit of Rs 6,00,000 will earn Rs 1,09,902 in interest. Thus, at maturity, you will receive a total of Rs 7,09,902.
How to Open an SBI RD Account
Opening an RD account with SBI is straightforward. You can visit your nearest SBI branch to set up the account. Alternatively, you can open an RD account online through the Yono app from the comfort of your home.
Summary
The SBI RD scheme is a secure and profitable way to save money regularly. With attractive interest rates and the safety of a reputed bank, it's an excellent option for anyone looking to grow their savings steadily over time.