SBI e-RD: Know the expiration, the deposit limit and how to open an account online & nbsp
Key points
- The minimum deposit term for e-RD is 12 months, the maximum is 120 months.
- The interest rate on RD is applicable to time deposits
- The minimum deposit amount is Rs 100 per month (thereafter in multiples of Rs 10
New Delhi: Recurring Deposit (RD) is a product to provide a person with the opportunity to accumulate savings through regular monthly fixed-sum deposits over a period of time. RD is similar to making FD of a certain amount in monthly installments, for example, Rs 1,000 each month. This deposit is due on a specific date in the future along with all deposits made each month.
SBI allows people to open an online RD account known as e-RD. If a person has an SBI net banking username and password and at least one transaction account assigned to the username, they can open e-RD. The minimum deposit tenure for e-RD according to SBI is 12 months, while the maximum is 120 months.
How to open an online recurring deposit account (e-RD):
SBI RD Interest rate:
The interest rate on RD is applicable to term deposits. The interest rate payable to SBI staff and SBI pensioners will be 1.00% higher than the applicable rate. The rate applicable to all seniors 60 years or older will be 0.50% above the applicable rate.
Deposit limit:
According to the SBI website, the minimum deposit amount is 100 rupees per month (thereafter in multiples of 10 rupees), while there is no maximum deposit amount limit,
Fines for not depositing monthly fees:
For accounts with a maturity period of 5 years and less, the fine is Rs 1.50 for Rs 100 per month. For accounts with a maturity period greater than 5 years, the penalty charge is Rs 2 to Rs 100 per month.
RD Service Charges:
A service charge of Rs 10 will be applied to recurring Deposit accounts paid on or after the due date, where there is a default on three or more consecutive installments and the account has not been regularized. In the event that six consecutive installments are not received, the account will be closed prematurely and the balance will be paid to the account holder.
Amount of maturity:
The maturity amount is based on the quota, holding and type of account selected by the client. The RD maturity value is rounded to the nearest rupee and paid after the 30-day / one-month deposit of the last installment or at the expiration of the period for which the deposit was accepted, whichever is later. You can check the maturity amount, the maturity date and the interest rate, without opening e-RD through the “Query” tab available on the e-RD page.
Types of accounts from which an amount can be debited for the deposit:
You can upload a checking account to open a RD account. The account selected for debiting must be a valid transactional account through the Internet banking channel and must not be a stopped / inactive / blocked account. Please note that the maturity amount or the amount payable before maturity will be transferred only to the debit account from which the first one was funded.
Reduce the time to create e-RD online:
According to the SBI website, e-RD can be created online from 8:00 a.m. at 8:00 p.m. Applications initiated beyond this period will be scheduled for the next opening hours.
Standing instructions for periodic installment payments:
You can pay the RD fee at your branch, or you can also set up permanent instruction at the branch or through Internet banking at any time. Only your first installment is paid online at the time of opening the RD account. You can cancel your permanent instructions, which are established through Internet banking, in the “View / Cancel” tab, in Electronic services -> Permanent instructions link.
RD account closure:
You can close your RD account online through the “Close A / c” tab in e-RD, which are created only through e-RD. The RD account created by any other means cannot be closed using the “Close a / c” tab in e-RD.
