SBI RD Account: How to open SBI recurring deposit account online and set standing instruction

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State Bank of India (SBI) customers can easily open recurring deposit (RD) easing using net banking facility. Tan RD allows you to save money by making regular monthly contributions of a predetermined amount over a certain period of time.

How to open online Recurring Deposit (e-RD) account-SBI

Step 1: Login SBI net banking, using user ID and password

Step 2: Under the main menu, click on ‘Fixed Deposits’ and e-RD(RD) from dropdown

Step 3: Click proceed

Step 4: Select the account from which you wish to transfer funds

(Tick the box if you are a senior citizen)

Step 5: Enter the amount, select the tenure and choose the payout option

Step 6: Set ‘Standing Instruction here by doing so, the mentioned amount will be deducted from your account towards your RD account. Check details like number of instalments, amount, and frequency.

Step 7: Tick box the “Terms and condition”

Step 8: Click on Submit and verify the same and click ‘Confirm’ the same on the next page.

The minimum deposit to open a recurring deposit amount is Rs 100 per month, thereafter in multiples of Rs 10. There is no maximum limit on deposit amount.

Penalty charges

If a depositor does not pay the instalment on time for three months in a row, the account will not be terminated and a service penalty of Rs 10 will be applied.

The penalty for late payment of an instalment is as follows:

I) In the case of a delay in payment of an RD instalment of 5 years or less, the penalty is Rs 1.50 for every Rs 100 per month.

ii) For accounts older than 5 years, the penalty would be Rs 2.00 for every Rs 100 per month.

How is the maturity amount calculated

According to SBI FAQ page, the maturity amount is determined by the customer’s instalment, duration, and account type. The maturity amount of the RD is rounded to the closest rupee and paid after 30 days/one month deposit of the final instalment or the end of the period for which the deposit was received, whichever comes first. You can find out the maturity amount, maturity date, and interest rate without having to access e-RD by using the “Enquiry” tab on the e-RD page.

Charges for premature close

According to the SBI website, the penalty for premature withdrawal on Term Deposits up to Rs 5.00 lacs is 0.50 percent (all tenors). The relevant penalty for Term Deposits exceeding Rs 5.00 lakh is 1% (all tenors).

The interest rate shall be 0.50% or 1% below the rate applicable at the time of deposit for the duration the deposit remained with the Bank, whichever is lower, or 0.50% or 1% below the agreed rate.

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