How to Open an SBI Recurring Deposit Account Online and Set Standing Instructions

Customers of State Bank of India (SBI) can easily open Recurring Deposit (RD) easing using the Net Banking Facility. Tan RD saves you money by making regular monthly contributions of a predetermined amount over a certain period of time.

How to Open a Recurring Deposit (e-RD) Account Online – SBI

Step 1: Log in to SBI net banking, using the username and password

Step 2: In the main menu, click on “Fixed deposits” and e-RD (RD) in the drop-down list

Step 3: Click Continue

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

(Check the box if you are a senior)

Step 5: Enter amount, select duration and choose payment option

Step 6: Define here the “standing instructions”, the mentioned amount will be deducted from your account to your RD account. Check details like number of installments, amount and frequency.

Step 7: Check the “Terms and Conditions” box

Step 8: Click Submit and check 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, then in multiples of Rs 10. There is no maximum limit on the deposit amount.

Penalties

If a depositor fails to pay the deposit on time for three consecutive months, the account will not be terminated and a service penalty of Rs 10 will be applied.

The penalty for late payment of a deposit is as follows:

i) In case of late payment of an RD installment of 5 years or less, the penalty is Rs 1.50 for every Rs 100 per month.

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

How the Maturity Amount is Calculated

According to the SBI FAQ page, the amount at maturity is determined by the installment, term, and type of client account. The amount at maturity of the RD is rounded to the nearest rupee and paid after 30 days/one month of deposit of the last installment or at the end of the period for which the deposit was received, whichever comes first. You can find out the due amount, due date and interest rate without having to access the e-RD by using the “Request” tab on the e-RD page.

Fees for premature closure

According to the SBI website, the early withdrawal penalty on term deposits up to Rs 5.00 lacs is 0.50% (all tenors). The applicable penalty for term deposits exceeding Rs 5.00 lakh is 1% (all tenors).

The interest rate will be 0.50% or 1% lower than the rate applicable at the time of deposit for the term of the deposit with the Bank, whichever is lower, or 0.50% or 1% lower than the agreed rate .

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