State Bank of India (SBI) has launched an innovative recurring deposit product, "Har Ghar Lakhpati" (HGL). This scheme allows individuals to save systematically and accumulate up to Rs.1 lakh monthly upon maturity by investing a specific amount for a specific tenure.
SBI offers a maximum interest rate of 6.75% for tenures of 3 and 4 years under its "Har Ghar Lakhpati" scheme. For other tenures, the interest rate is 6.50%.
Recurring Deposits (RD) offer individuals a disciplined way to save money regularly while earning interest. The monthly fixed amount and tenure are determined by you, while you open the account. The fixed amount you deposit each month earns interest which is compounded quarterly.
If a general (non-senior) citizen invests Rs 2,500 every month for three years, with an interest rate of 6.75%, he/she can get Rs 1 lakh at the end of the term.
If a general citizen invests Rs 1,810 every month for four years, with an interest rate of 6.75%, he/she can get Rs 1 lakh at the end of the term.
If a general citizen invests Rs 1,407 every month for five years, with an interest rate of 6.50%, he/she can get Rs 1 lakh at the end of the term.
If a senior citizen invests Rs 2,480 every month for three years, with an interest rate of 7.25%, he/she can get Rs 1 lakh at the end of the term.
If a senior citizen invests Rs 1,791 every month for four years, with an interest rate of 7.25%, he/she can get Rs 1 lakh at the end of the term.
If a senior citizen invests Rs 1,389 every month for five years, with an interest rate of 7%, he/she can get Rs 1 lakh at the end of the term.
SBI Lakhpati RD scheme can be a good option for those with steady income who prefer saving monthly for guaranteed returns. It's for first-time investors or students starting with smaller amounts. RDs offer fixed returns, free from market risks, and can be beneficial if you prioritize disciplined saving. While they provide security, withdrawals or premature closures are possible, albeit with penalties.
