Har Ghar Lakhpati SBI Deposit Scheme is designed to help individuals achieve their financial goals by accumulating savings gradually.
SBI Har Ghar Lakhpati RD Scheme: State Bank of India (SBI) has launched a new “Har Ghar Lakhpati” recurring deposit scheme, offering a personalised financial product that allows customers to accumulate Rs 1 lakh or more in their accounts through small monthly deposits. This initiative is designed to help individuals become a ‘LAKHPATI’ by the time their deposit matures.
The scheme encourages investors to develop regular savings habits, making it easier to build wealth over time.
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What Is a Recurring Deposit?
A Recurring Deposit (RD) is a type of investment product where individuals commit to depositing a fixed amount of money every month for a set tenure. At the end of the term, the person receives both the principal and the interest accrued over the period.
What Is the SBI Har Ghar Lakhpati Recurring Deposit?
The Har Ghar Lakhpati scheme by SBI is designed to help individuals achieve their financial goals by accumulating savings gradually. The initiative promotes the habit of regular savings and aims to guide people in building wealth to reach the target of becoming a “lakhpati” (having Rs 1 lakh or more) within a predetermined period.
SBI Har Ghar Lakhpati RD: Purpose of the Scheme
State Bank of India has introduced this customised RD product, aimed at enabling customers to accumulate Rs 1 lakh or more by depositing small savings every month. The scheme allows individuals to become ‘Lakhpatis’ upon the maturity of their deposit, offering an accessible and systematic way to build wealth over time.
SBI Har Ghar Lakhpati RD Scheme Eligibility
The scheme is open to all resident individuals, who can open an account either singly or jointly. Minors above 10 years of age, with the ability to sign legibly, are also eligible to open an account, either individually or with their parents or legal guardians.
Deposit Details
- Minimum and Maximum Instalment: Pre-calculated instalments are provided based on the chosen maturity amount and tenure (refer to tables for more information).
- Partial Payment: Customers are allowed to make partial payments toward their instalments, providing flexibility in saving.
Maturity Amount
The target maturity amount is Rs 1 lakh or its multiples, depending on the instalment amount and the selected tenure. Customers can choose the amount and duration that best suits their financial goals.
Deposit Period
The scheme offers a flexible tenure ranging from 3 to 10 years, allowing customers to choose a period that aligns with their savings objectives.
Maturity Date
The maturity amount will be rounded to the nearest rupee and paid either 30 days after the last instalment or upon the expiry of the chosen deposit period, whichever is later.
Premature Closure
- For deposits up to Rs 5 lakh (principal), a penalty of 0.50% will be charged for premature withdrawals.
- For deposits above Rs 5 lakh (principal), the penalty increases to 1%. The interest rate applicable at the time of deposit opening will be reduced by 0.50% or 1%, depending on the amount, for the period the deposit was held.
- No interest will be paid if the deposit is withdrawn within 7 days.
Advance Payment of Instalments
Customers can make advance payments, but this will not affect the final maturity value. However, any delayed payments will incur penalties, which will be deducted from the maturity amount.
Har Ghar Lakhpati SBI Calculator
Refer to the tables given below for a detailed understanding of the scheme instalments and interest rates.
The table calculation is based on a maturity amount of Rs 1,00,000. Table A consists of monthly contributions and Table B mentions interest rates over a tenure.
The instalment amount has been calculated based on the current interest rate, as shown in Table B. This amount is subject to change if the interest rate changes.
The chart below is for illustrative purposes only. Depending on the customer’s desired maturity amount (e.g., Rs 1 lakh, Rs 2 lakh, Rs 3 lakh, Rs 4 lakh, etc.), the instalment amount will be calculated accordingly.
Source: SBI official website
Tax Deduction at Source
As per income tax rules, TDS will be applicable on the interest earned under this scheme.
Default and Penalties
- A penalty of Rs 1 per Rs 100 per month is levied on delayed payments for RD tenures of 5 years or less.
- For tenures exceeding 5 years, the penalty is Rs 2 per Rs 100 per month.
- The penalty will not exceed the interest paid to the depositor.
- If six consecutive instalments are missed, the account will be closed prematurely, and the balance will be transferred to the linked Savings Bank account.
Service Charges
A service charge of Rs 10 will be levied on RD accounts paid out after maturity if there have been three or more consecutive missed instalments and the account has not been regularised.
How to Open an Account For SBI Har Ghar Lakhpati RD Scheme?
To enroll in the “Har Ghar Lakhpati” scheme, individuals can visit their nearest SBI branch and submit the necessary documents. Additionally, customers can sign up and invest online through SBI’s internet banking services or the YONO app. After selecting their target maturity amount and tenure, the monthly instalment will be calculated.
This scheme offers a straightforward and disciplined approach to savings, making it easier for individuals to accumulate wealth over time and achieve their financial goals.
