Looking for a safe and flexible investment option with high returns? The State Bank of India (SBI) Recurring Deposit (RD) scheme offers attractive interest rates, making it a popular choice for risk-averse investors.
In this detailed guide, we’ll cover:
✅ Latest SBI RD interest rates (2025)
✅ Features, benefits, and eligibility
✅ How to open an SBI RD account (online & offline)
✅ Interest calculation & maturity amount
✅ Premature withdrawal rules
✅ FAQs & expert tips
By the end, you’ll know whether SBI RD is the right investment for you—and how to maximize your returns.
SBI RD Interest Rates May 2025 (Updated)
SBI offers competitive RD interest rates, with additional benefits for senior citizens. Here are the latest rates for deposits below ₹2 Crore:
| Tenure | General Public | Senior Citizens |
|---|---|---|
| 1 year – 1 year 364 days | 6.80% | 7.30% |
| 2 years – 2 years 364 days | 7.00% | 7.50% |
| 3 years – 4 years 364 days | 6.50% | 7.00% |
| 5 years – 10 years | 6.50% | 7.00% |
Key Highlights:
- Minimum deposit: ₹100 (multiples of ₹10 thereafter).
- Maximum tenure: Up to 10 years.
- Senior citizens get 0.50% extra interest.
- Loan facility: Up to 90% of RD balance can be availed as a loan.
Why Choose SBI RD? 5 Key Benefits
- Safe & Secure: Backed by India’s largest bank, ensuring zero risk.
- Higher Interest for Seniors: 7.50% for 2-year deposits.
- Flexible Tenures: From 1 year to 10 years.
- Loan Against RD: Get up to 90% of your deposit in emergencies.
- Easy Online Management: Open & track your RD via SBI Net Banking.
How to Open an SBI RD Account? (Online & Offline)
Option 1: Online (For Existing SBI Customers)
- Log in to SBI Net Banking.
- Go to “Deposits” → “Recurring Deposit” → “Open e-RD”.
- Enter deposit amount, tenure, and nominee details.
- Confirm & activate your RD instantly.
Option 2: Offline (For New Customers)
- Visit the nearest SBI branch.
- Fill out the RD application form.
- Submit KYC documents (Aadhaar, PAN, address proof).
- Deposit the initial amount (min. ₹100).
SBI RD Interest Calculation & Maturity Amount
Use the SBI RD Calculator or the formula:
Maturity Amount (A) = P × (1 + r/n)^(nt)
Where:
- P = Monthly deposit
- r = Annual interest rate
- n = Compounding frequency (quarterly)
- t = Tenure in years
Example:
- Monthly deposit (P): ₹5,000
- Tenure (t): 2 years
- Interest rate (r): 7%
- Maturity Amount: ~₹1,29,000 (approx.)
👉 Try SBI RD Calculator
SBI Recurring Deposit Calculator 2025
Your RD Maturity Details
Note: Interest rates are as per SBI RD rates 2025. The calculation is based on quarterly compounding. Actual maturity amount may vary slightly due to rounding differences.
SBI RD Premature Withdrawal Rules
- Allowed, but a penalty applies.
- No partial withdrawals—only full closure.
- Interest paid: Lower of 1% below contracted rate or savings account rate.
Final Verdict: Is SBI RD Worth It?
👍 Best For:
- Risk-averse investors
- Senior citizens (higher interest)
- Short-to-medium-term goals (1–5 years)
👎 Not Ideal For:
- Long-term wealth creation (better options like mutual funds).
- Emergency funds (penalty on early withdrawal).
Expert Tip:
If you need liquidity, consider SBI Flexi RD, which allows flexible deposits.
Next Steps
🔹 Calculate returns: Use SBI RD Calculator.
🔹 Open an RD: Visit SBI Official Website.
By choosing SBI RD, you get guaranteed returns with zero market risk. Start investing today!
SBI RD Interest Rates 2025 - Frequently Asked Questions
SBI RD interest rates range from 6.50% to 7.50% for general citizens and 7.00% to 8.00% for senior citizens (with an additional 0.50%). Rates vary based on tenure (1 year to 10 years).
The minimum monthly deposit is ₹100, with subsequent deposits in multiples of ₹10.
Yes, existing SBI customers can open an RD account via Internet Banking or the YONO app. New customers must first open an SBI savings account.
SBI RD interest is compounded quarterly (every 3 months). The formula used is:
Maturity Amount = P × (1 + r/n)^(nt)
(Where P = principal, r = rate, n = compounding frequency, t = tenure).
The maximum tenure is 10 years, with flexible options from 1 year onwards.
Yes, senior citizens receive an extra 0.50% interest over regular rates (e.g., 7.50% for 2-year RDs vs. 7.00% for general citizens).
Yes, but premature withdrawals attract a penalty:
- 1% lower interest than the contracted rate
- No partial withdrawals—only full closure is allowed.
Yes, TDS is deducted if annual interest exceeds ₹40,000 (₹50,000 for seniors). Submit Form 15G/15H to avoid TDS if your income is below taxable limits.
Yes, NRIs can open RDs via NRE/NRO accounts, but rates may differ.
- RD: Better for monthly savers (systematic investing).
- FD: Ideal for lump-sum investments.
- Returns: Similar, but RD helps in disciplined savings.
Bonus: Quick Tips for SBI RD Investors
✔ Use the SBI RD Calculator to plan your investments.
✔ Opt for longer tenures (3–5 years) for better rates.
✔ Senior citizens should always check for preferential rates.
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