SBI, one of India’s largest banks, has a long track record of steady returns and consistent performance across its deposit products. Among these offerings, the SBI Recurring Deposit (RD) is designed to help savers build disciplined savings over time. It suits both short and long-term goals and allows regular monthly contributions with a low minimum starting amount.
The monthly deposit for an SBI RD can be as low as ₹100, and you can increase contributions in multiples of that amount. Interest rates vary by tenure and by age category; senior citizens receive a higher rate. Interest is compounded quarterly, and the scheme permits premature withdrawal subject to the bank’s penalty rules. Loans against the RD are also available, providing liquidity without breaking the deposit.
Quick Overview
| Key Details | Information |
|---|---|
| Minimum deposit | ₹100 per month |
| Maximum deposit | No upper limit |
| Tenure | 12 to 120 months |
| Interest Rate (General) | 6.50% – 7.00% p.a. |
| Interest Rate (Senior Citizens) | 7.00% – 7.50% p.a. |
| Interest payout | Compounded quarterly |
| Premature withdrawal | Allowed with penalty |
| Loan facility | Available against RD |
Below are the SBI RD interest rates effective for 2026. Rates differ by tenure and whether the depositor is a senior citizen.
| Tenure | General Citizens | Senior Citizens |
|---|---|---|
| 1 year to 1 year 364 days | 6.80% | 7.30% |
| 2 years to 2 years 364 days | 7.00% | 7.50% |
| 3 years to 4 years 364 days | 6.50% | 7.00% |
| 5 years to 10 years | 6.50% | 7.50% |
SBI Recurring Deposit Features
The SBI RD offers a set of practical features aimed at regular savers. It combines flexibility, straightforward documentation, and access through both digital and branch channels.
- Deposit tenure flexibility: Tenures range from 12 to 120 months, available in multiples of three months, letting you choose a horizon that suits your goal.
- Low entry amount and no upper limit: Start with ₹100 per month and add in multiples of ₹100. There is no prescribed upper limit on contributions.
- Interest and taxation: Interest earned is taxable as per your income tax slab. There are no tax exemptions on RD interest, and TDS rules apply as per law.
- Premature withdrawal: Allowed, but subject to bank penalties as per prevailing policy. Partial withdrawals are generally not permitted.
- Nomination facility: You can nominate a beneficiary for the RD account.
- Online management: RD accounts can be opened and managed through SBI’s internet banking and mobile platforms.
- Loan against RD: SBI makes loans available against recurring deposits, offering liquidity without closing the deposit.
Eligibility and Documents Required
Opening an SBI RD is straightforward if you meet the basic eligibility criteria and submit the required documents. Both online and offline routes are supported.
Eligibility criteria
- Resident individuals: Any Indian resident with an SBI savings account can open an RD.
- Minors: Minors may open an RD with a parent or guardian as the account holder.
- Non-resident Indians: NRIs can invest in SBI RD as permitted under bank guidelines.
- HUFs and businesses: Hindu Undivided Families, sole proprietors, partnerships, and registered companies can open RD accounts where applicable.
- Trusts and associations: Eligible trusts and institutions may open RD accounts after verification.
Documents required
- Identity proof: Aadhaar, PAN, voter ID, passport, or other accepted government ID.
- Address proof: Passport, utility bill, or recent bank statement showing current address.
- PAN details: PAN is typically required for tax and TDS purposes.
- Age proof for senior citizens: If claiming senior-citizen rates, submit age proof.
Branches may request additional documents for certain account types. Check with the branch if you are unsure.
Calculating SBI RD Maturity
The maturity amount for an RD depends on the monthly instalment, the applicable interest rate, the compounding frequency, and the tenure. SBI provides an online RD calculator to estimate returns. The standard formula used to estimate maturity is:
M = R × [ (1 + i)^n – 1] ÷ (1 – (1 + i)^(-1/3))
Where:
- M = Maturity amount
- R = Monthly instalment
- i = Quarterly interest rate
- n = Number of quarters
For example, investing ₹10,000 monthly for 3 years at an approximate annual rate of 6.50% would yield an estimated maturity around ₹3.98 lakh. This is an estimate; the exact figure depends on the precise rate and compounding.
How to Open an RD Account Online
Follow these steps to open an RD through SBI internet banking:
- Sign in to SBI internet banking with your credentials.
- Go to ‘Deposits and Investments’.
- Select ‘Fixed Deposits’ and then choose ‘eRD’.
- Click ‘Open New Account’ and enter the monthly deposit amount, tenure, and other details.
- Review and submit the form. The RD will appear in your account summary once opened.
How to Open an RD Account Offline
- Visit your nearest SBI branch where you hold a savings account.
- Request and complete the RD account opening form.
- Submit the required KYC documents and deposit the first monthly instalment.
- After verification, the branch will activate your RD account.
Regular contributions to an RD help build a disciplined corpus. The scheme is simple and suitable for savers who prefer fixed returns with minimal intervention.
TDS on SBI RD
Interest earned on SBI RD is taxable. Banks deduct TDS at 10% if interest from deposits exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If PAN is not furnished, TDS may be deducted at a higher rate, up to 20%. No TDS is deducted if interest income stays below the threshold. Your final tax liability depends on your total income and tax slab and may result in additional tax payable or a refund when you file returns.
Closing an SBI RD Account
To close an RD account, visit your branch and request the RD closure form. Complete and sign the form, attach required KYC and account documents, and submit it to the branch for processing. The bank will close the RD after verification and process any payable amount after applicable penalties, if any.
Premature Withdrawal Rules
Premature withdrawal of an RD is permitted but attracts a nominal penalty. Partial withdrawals are generally not allowed under SBI RD rules, so complete withdrawal is typically the option if funds are needed before maturity.
Rate Changes and Existing RDs
Interest rates applicable at the time of opening your RD remain fixed for its tenure. Future changes in SBI’s interest rates do not affect already opened recurring deposit accounts.
Common Questions
What are the current SBI RD interest rates for 2026?
The general RD interest rates range from 6.50% to 7.00% per annum, with senior citizens receiving between 7.00% and 7.50% per annum, depending on tenure.
Can I open an RD for 6 months?
No. SBI recurring deposit tenures typically start at a minimum of 12 months, so a 6-month RD is not available.
Overall, SBI Recurring Deposit is a dependable savings option for regular investors seeking predictable returns and disciplined saving. Consider the tenure, monthly contribution, tax implications, and premature withdrawal rules before investing to ensure the product meets your financial plan.