Savings can be started by depositing small amount left over from daily expenses.
It is said that drop by drop makes the ocean. This also applies to savings. Savings can be started by depositing small amount left over from daily expenses. As the money increases in the hand, the amount of deposit can be increased. When Kovid 19 came to a standstill during the lockdown, their savings came in handy for many people to spend. The Recurring Deposit (RD) can be a good option for saving through small amounts.
The biggest feature of RD is that money can be poured into it every month. If you want to RD in SBI, then there is no need to go anywhere for this. If you want, you can open RD account in SBI from your smartphone while sitting at home. For this, you have to take help of YONO SBI app.
Process to RD from YONO
- Log in to the YONO SBI app.
- Now click on deposits.
- Now click on ‘Create Recurring Deposit’.
- Enter the amount of money you want to deposit in RD every month.
- Choose the bank account from which to deposit money in RD.
- Click on ‘Next’.
- Choose the time you have to RD.
- Now on which date of every month the installment will be deposited in RD, choose it.
- Now click on ‘view interest rates’ and go to RD interest rates.
- Here the interest rates fixed for it will appear in front of different maturity periods. Choose the length of time you want to RD.
- Now clicking on ‘OK’, you will go to the page where you have chosen the installment date in RD. Here, with the maturity period you have chosen, the fixed interest rate will also be shown.
- Now click on ‘Next’ and review the details you have entered. Here, the amount you will get after completion of RD’s maturity period will also be a show.
- On this page there is the option ‘View nominee details’, in which the nominee can be changed. After details are edited, tap on the back.
- After reading the terms and conditions, click Accept and confirm.
- After this, your RD account will be opened in SBI and its message will be shown. Its details will also be sent to your registered email id. You can also download the receipt from here.
SBI RD Features
- The minimum deposit amount in SBI’s RD is Rs 100 per month. There is no maximum investment limit.
- SBI RD can be opened for at least 12 months i.e. 1 year and maximum 120 months i.e. 10 years.
- Up to 90 percent loan or overdraft can be found on the deposit in RD account.
- The interest rate on an SBI RD account is the interest rate applicable for term deposits. Currently, the interest rate on domestic term deposits in SBI ranges from 2.90 per cent to 5.40 per cent per annum for different maturity periods.
- For senior citizens, the interest rate on RD is 0.50 per cent higher than the fixed interest rate.
- The interest rate for SBI staff and SBI pensioners is 1 percent higher than the applicable interest rate.
- RD is allowed to close before the maturity period is completed. But together the penalty will have to be paid and interest will be cut.
- If you keep RD for less than 7 days, you will not get any interest.
- In this scheme you can make any person your nominee.
- Passbook facility.
- Penalty is levied for non-deposit of EMI in SBI RD. On a RD with a maturity period of 5 years or less, this penalty is Rs 1.50 per 100 rupees. The penalty on an account with a maturity period of more than 5 years is Rs 2 per 100 rupees.
- If three or more consecutive installments default in the RD account or the account is not regularized, then a service charge of Rs 10 will be charged. This will be taken on or after the maturity date of the account.
- If there is a default of 6 consecutive installments, the RD account will be closed before completion of the maturity period and the balance amount will be paid to the account holder.
- RD can be transferred from one branch of SBI to another branch.