Features of State Bank of India recurring deposit accounts:
1. SBI offers recurring deposit facility for a maximum of 120 months with minimum being 12 months.
2. The minimum monthly deposit that can be made is Rs 100 and there is no monthly limit, says SBI.
3. Interest rate is applicable as per SBI's term deposits (TDR) / special term deposits (STDR) for the period of the RD.
4. Loan/Overdraft facility available up to 90 per cent available against the balance in RD account, says SBI
5. TDS or tax deducted at source is applicable.
(Also read: SBI Hikes Lending Rate For First Time Since April 2016)
6. Premature withdrawal is allowed and for this, rules for TDR/STDR are applicable, says SBI.
Interest rates of State Bank of India recurring deposit accounts (as told by the customer service executive):
|Tenure||General public||Senior citizens|
|1 year||6.40% pa||6.90% pa|
|2 year -less than 3 years||6.50% pa||7% pa|
|3 year - less than 5 years||6.50% pa||7% pa|
|5 year-up to 10 years||6.50% pa||7% pa|
Terms and conditions of SBI RD account
1. Penalty charges for non-deposit of monthly instalments:
2. For account of period 5 years and less -Rs. 1.50 per Rs. 100/- per month
3. For a/c of period above 5 years- Rs. 2.00 per Rs. 100/- per month
4. Instructions for disposal of maturity proceeds are accepted at the time of opening of accounts.
SBI also hiked its fixed deposit interest rates on February 28, 2018.
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