The State Bank of India (SBI) has launched the SBI Har Ghar Lakhpati RD scheme, aimed at assisting customers in accumulating a fund of Rs 1 lakh (Becoming Lakhpati)or higher. Through consistent monthly contributions, individuals can attain ‘Lakhpati’ status when the scheme matures. This chance is available to all resident individuals, including those 10 years and older who can sign on their own; however, children younger than this must have a parent or legal guardian to jointly manage the account. The duration of investment may range from 3 to 10 years, providing flexibility for investors.
Recurring Deposit (RD) accounts are unique savings tools enabling individuals to deposit a fixed sum each month, accumulating interest that compounds on a quarterly basis. The SBI describes this structured savings method as an account that allows you to decide the initial amount and time period, making it easier to save purposefully over time. For individuals intending to withdraw their deposits prematurely, SBI applies a penalty of 0.50% for sums under Rs 5 lakh and 1% for sums exceeding Rs 5 lakh, without considering the tenure.
For ordinary individuals looking to create a Rs 1 lakh fund, the necessary investment varies depending on the duration and interest rate. For instance, depositing Rs 2,500 monthly at an interest rate of 6.75% for three years, or Rs 1,810 for four years at that same rate, would be adequate. Conversely, investing Rs 1,407 each month for five years at a 6.50% interest rate would also reach the Rs 1 lakh target. Elderly individuals enjoy marginally elevated interest rates, boosting their savings capacity during comparable timeframes.
Penalties and Key Considerations The SBI Har Ghar Lakhpati RD scheme has particular requirements concerning account management. If six successive payments are not made, the account may be closed early, and the total amount will be automatically moved to the associated SBI Savings Bank account. Additionally, closing an account early results in penalties. As per the SBI website, “Interest Rate will be either 0.50% or 1% less than the interest rate relevant at the time the deposits are opened, for the duration the deposit stays with the Bank, or 0.50% or 1% below the agreed rate, whichever is lesser. Nonetheless, no interest will be accrued on deposits that stay for a duration shorter than 7 days. Moreover, overdue payments on RD installments attract fees, which amount to Rs 1.50 for every Rs 100 per month for deposits lasting up to five years, and Rs 2.00 for every Rs 100 per month for deposits beyond five years.
Investment Information for Senior Citizens Senior citizens have a customized investment route to achieve the Rs 1 lakh target. By investing Rs 2,480 each month for three years at a 7.25% interest rate, or choosing a Rs 1,791 monthly deposit for four years at that rate, they can reach their goal. A three-year investment strategy with a 7% interest rate, necessitating a monthly contribution of Rs 1,389, is an alternative feasible choice for senior citizens seeking to achieve the Rs 1 lakh corpus.
SBI Har Ghar Lakhpati RD Features
| Nature of Deposit | Recurring Deposit |
| Purpose | Providing a customized RD product to customers enables them to become Lakhpati by the accumulation of ₹1.00 lakh (Rupees one lakh) or more by depositing small savings every month. |
| Eligible customers | All Resident Individuals can open an account Singly or Jointly. Minor can open an account alone (above 10 years of age and can sign legibly) or else with his/ her parents/ legal guardian. |
| Partial payment of instalment | Partial payment of an installment is allowed. |
| Period of Deposit | 3 to 10 Years |
| Maturity Date | The maturity value of RD is rounded off to the nearest rupee and paid 30 days/ one month after the deposit of the last installment or on the expiry of the period for which the deposit was accepted, whichever is later |
| Premature closure | a) If the payment amount is up to ₹.5.00 lacs (Principal) the penalty for premature withdrawal will be 0.50% (all tenors). |
| b) If the payment amount is above ₹.5.00 lacs (Principal), the applicable penalty will be 1% (all tenors). Interest Rate shall be 0.50% or 1% below the rate of interest applicable at the time of opening of deposits, for the period deposit remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower. However, no interest will be paid on deposits which remain for period less than 7 days. | |
| Advance payment of instalment | Advance payment of Instalment does not lead to change in maturity value. However, delayed payment of instalment leads to deduction of penalty from maturity amount. |
| Tax deduction at source | It is applicable as per Income Tax Rules. |
| Account in default | The penalty on delayed payment of instalment are: |
| ₹ 1.50 for every ₹ 100 per month for RD tenor of 5 years or less. | |
| ₹ 2.00 for every ₹ 100/- per month for RD tenor of more than 5 years. (Rates are subject to change from time to time) | |
| Penalty when applied shall not exceed the interest paid to the depositor. | |
| Service Charge | A service charge of ₹10/- is levied on RD accounts paid out on or after date of maturity, where in there is default in payment of three or more consecutive instalments and account has not been regularized. |
| Non- Payment of Instalment | In case 6 (six) consecutive installments are not received, the account shall prematurely be closed, and the balance shall be paid/transferred to the linked Savings Bank account of the account holder. |
SBI Har Ghar Lakhpati RD Amount
| Period → Years | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| General Public | ₹ 2,502 | ₹ 1,812 | ₹ 1,409 | ₹ 1,135 | ₹ 940 | ₹ 795 | ₹ 682 | ₹ 593 |
| Senior Citizen | ₹ 2,482 | ₹ 1,793 | ₹ 1,391 | ₹ 1,117 | ₹ 923 | ₹ 778 | ₹ 665 | ₹ 576 |
| Staff | ₹ 2,463 | ₹ 1,775 | ₹ 1,373 | ₹ 1,100 | ₹ 906 | ₹ 762 | ₹ 650 | ₹ 562 |
| Staff Senior Citizen | ₹ 2,444 | ₹ 1,756 | ₹ 1,355 | ₹ 1,082 | ₹ 889 | ₹ 745 | ₹ 634 | ₹ 546 |
SBI Har Ghar Lakhpati RD Interest Rate
| Period → Years | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| General Public | 6.75% | 6.75% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
| Senior Citizen | 7.25% | 7.25% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| Staff | 7.75% | 7.75% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| Staff Senior Citizen | 8.25% | 8.25% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
The tables given by SBI, showing monthly payment amounts and interest rates, illustrate the fluctuations and possible adjustments that may influence these savings offerings. Although these instances act as a reference, real amounts might differ depending on personal choices and the prevailing interest rates when deposits are made.
Conclusion
In summary, the SBI Har Ghar Lakhpati RD is an appealing program for persons and households looking to save and increase their wealth in a structured manner, providing a clear route to reaching financial goals. Offering choices for both regular and senior citizens, along with provisions for early withdrawals and missed payments, it serves as a flexible resource for individuals aiming to create a substantial savings fund.
FAQ’s
What is the SBI Har Ghar Lakhpati RD scheme?
The SBI Har Ghar Lakhpati RD scheme is designed to help customers accumulate a corpus of Rs 1 lakh or more through regular monthly deposits.
Who can participate in the SBI Har Ghar Lakhpati RD scheme?
All resident individuals, including children aged 10 and above who can sign independently, can participate in the scheme, while younger children need a parent or legal guardian to co-hold the account.
What are the penalties for early withdrawal from the RD scheme?
Early withdrawal incurs a penalty of 0.50% for amounts below Rs 5 lakh and 1% for amounts above Rs 5 lakh, regardless of the tenure.
What investment amounts are required for senior citizens to reach Rs 1 lakh?
Senior citizens can deposit Rs 2,480 monthly for three years at a 7.25% interest rate, or Rs 1,791 monthly for four years at the same rate to reach Rs 1 lakh.
What happens if six consecutive installments are missed?
If six consecutive installments are missed, the account will face premature closure, and the accumulated sum will be automatically transferred to the linked SBI Savings Bank account.
