SBI RD Interest Rates 2025

State Bank of India, one of the largest and most trusted public sector banks in India, offers SBI Recurring Deposit (RD). RDs are a smart way to save regularly while earning attractive interest rates. Moreover, SBI RDs allow you to steadily grow your savings with a minimum monthly deposit of just Rs. 100. To learn more about SBI RD, scroll through this blog. 

SBI Recurring Deposit Scheme Highlights for 2025

Here are the main highlights of recurring deposits of SBI Bank:

SBI RD Interest Rate 2025

Here are the applicable SBI RD interest rates 2025:

Features of SBI RD Interest Rates 

The following are the crucial features of SBI Recurring Deposit account:

• Tenure: SBI offers recurring deposits with a flexible tenure ranging from 12 to 120 months, available in multiples of 3 months.
• Minimum and Maximum Deposit Amount: The minimum investment required for an SBI RD is Rs. 100, and additional deposits can be made in multiples of this amount. There is no upper limit on the maximum investment amount.
• Tax and TDS: SBI recurring deposits do not offer any tax benefits. The interest earned is subject to taxation based on the investor’s income tax slab. If the yearly interest exceeds Rs. 40,000 (or Rs. 50,000 for senior citizens), a TDS of 10% is deducted, provided the PAN details are submitted. If PAN is not available, the TDS rate rises to 20%.
• Premature Withdrawal: SBI allows investors to withdraw their RD prematurely but applies a penalty according to the bank’s policies.
• Nomination Facility: Depositors can nominate beneficiaries for their recurring deposits with SBI.
• Convenience: Opening and managing an SBI recurring deposit is hassle-free through the bank’s online platform.
• Loan Facility: SBI provides the option to take out a loan against recurring deposits, assisting investors with liquidity needs.

How to Calculate SBI RD Interest Rate?

The main goal of opening an SBI RD account is to earn extra money on your savings. The maturity amount depends on various factors such as the deposit amount, interest rate, RD duration, TDS, and other related elements. The simplest way to determine the interest on your recurring deposit is by using an SBI RD calculator, which is easily accessible online.

Formula

The formula to calculate the total maturity amount is 

M= R[1+in-1]1-(1+i)-(1/3)

Here,

• M= Amount received at the time maturity
• R = number of monthly installments 
• I = quarterly interest rate

Let us take an example to understand the calculation of SBI RD interest rates. Suppose you open a recurring deposit account in SBI and plan to invest Rs. 50,000 for 5 years.

The applicable interest rate for this will be 6.50%. Thus, after applying the formula, the maturity amount for your RD will be Rs. 35,49,541.

Alternatively, you can use the SBI Bank RD calculator to get the above results and avoid the hassles of manual calculation. 

Eligibility for Opening SBI RD Account

Anyone with a savings account in SBI can open a recurring deposit online or offline if they fulfil the following conditions:

• Indian residents, including minors
• Non-Resident Indians
• Hindu Undivided Family (HUF)
• Sole proprietary firms
• Partnership firms
• Companies
• Associations and trusts

Documents Required for Opening SBI RD Account

The following documents are required to open a SBI RD account:

• Identity Proof - Aadhaar card, voter ID card, PAN card, ration card, Government ID card, etc. 
• Address Proof - Electricity bill, telephone bill, passport, bank account statement, etc. 

How to Open an SBI RD Account?

You can open an SBI RD account by following any of the following ways:

• Offline Method

You can also open an SBI RD account by visiting your nearest SBI branch, where you have a savings account. Next, you have to fill out the RD opening form accurately and submit it by attaching the required documents. After paying the 1st instalment successfully and submitting the form, your SBI RD account will be opened.

• Online Method

To open an SBI RD account, follow the steps mentioned below:

1. Log in to your SBI internet banking account.
2. Under the ‘Deposits and Investment’ section, tap on the ‘Fixed Deposits’.
3. Tap on the ‘e-RD (Recurring Deposit)’ account.
4. Go to the ‘Open new A/c’ section and fill up the required details like RD amount, its duration and more.
5. After providing the details, hit the ‘Submit’ button. 

Your RD account will be opened, and then you can check the details under the ‘Account Summary’ section. 

How to Close the SBI RD Account?

You can close the SBI RD account by following the step-by-step procedure mentioned below:

1. Visit your nearest SBI Bank with your RD account details.
2. Navigate to the necessary authority member and ask for an RD account closure form.
3. Fill in the required details as asked and sign it. Please note that if the RD account has a joint holder, the closure accounts will need their signature and consent as well.
4. Attach the self-attested copies of the required documents with the closure form. These include KYC, PAN card, address proof, identity proof, RD account receipt, RD certificate etc.
5. Submit the form to the branch manager.

SBI RD Premature Withdrawal Rules

SBI permits customers to withdraw their RD funds ahead of maturity, though a nominal penalty applies for early withdrawal. It's important to note that SBI does not allow partial withdrawals from recurring deposits.

SBI recurring deposits offer a secure and systematic way to save and earn interest on your investments. With competitive SBI RD interest rates, flexible tenures, and features like nomination and loan facilities, these deposits cater to diverse financial needs. While there are penalties for premature withdrawals and late payments, the benefits of regular savings and guaranteed returns make SBI RDs a wise choice for both new and seasoned investors.