SBI Har Ghar Lakhpati RD Scheme: Monthly Investment Requirements, Eligibility, And Key Feature

The State Bank of India has launched the Har Ghar Lakhpati RD Scheme, a recurring deposit plan aimed to encourage individuals who save smaller amounts of money each month in order to accumulate Rs 1 lakh or more.

What is the SBI Har Ghar Lakhpati RD?

The Har Ghar Lakhpati RD Scheme is a recurring deposit account in which a specific amount is deposited every month for a predetermined period. Interest on these deposits is compounded quarterly, allowing the invested amount to grow steadily over time, according to the SBI website.

Who Can Open the SBI Har Ghar Lakhpati RD?

All Indian citizens are eligible for the scheme. While minors under the age of ten need a parent or guardian to open their account, those ten and above can register on their own. This scheme is suitable for individuals who want to build savings without making large initial deposits.

Investment Tenure

With flexibility in its investment duration, the scheme allows customers to choose a tenure ranging from 3 years to 10 years. The Har Ghar Lakhpati RD are likely to adapt to a range of financial demands, whether you have short-term objectives in mind with a 3-year plan or would rather take a longer-term strategy with a 10-year deposit.

Interest Rates on the Har Ghar Lakhpati RD Scheme

According to the SBI website, the interest rates for the Har Ghar Lakhpati RD Scheme vary based on the tenure of the deposit. For 3- and 4-year deposits, the interest rate is 6.75 per cent. For longer tenures like the 5-year term and beyond, the interest rate reduces slightly to 6.50 per cent. Senior citizens receive enhanced rates: 7.25 per cent for 3- and 4-year RDs, and 7 per cent for 5-year RDs and above, providing an attractive option for older investors to boost their savings.

Monthly Deposit Amounts to Become a Lakhpati

One of the most appealing aspects of the scheme is the affordability of the monthly deposits. To become a lakhpati by maturity, you would need to invest Rs 2,500 per month for 3 years, while senior citizens need to deposit Rs 2,480. If you opt for a 4-year plan, Rs 1,810 per month will help you reach the goal, with senior citizens contributing Rs 1,791. For a 5-year plan, monthly deposits of Rs 1,407 will help you build Rs 1 lakh by maturity, and senior citizens would only need to invest Rs 1,389. These reasonable deposit amounts make it easier for individuals to start saving without a heavy financial burden.

Penalties for Premature Withdrawal

There are penalties for early withdrawals under the scheme. If a deposit is withdrawn early, a penalty of 0.50 per cent will be applied if the principal is less than Rs 5 lakh. For amounts exceeding Rs 5 lakh, the penalty is raised to 1 per cent. Additionally, no interest is paid if the deposit is withdrawn within 7 days of opening, ensuring that the scheme remains a long-term commitment.

Penalties for Missed Payments

For missing deposits, there is also a penalty under the SBI Har Ghar Lakhpati RD plan. The penalty for deposits with maturities of five years or less is Rs 1.50 for each Rs 100 that is missed. When deposit durations exceed five years, the penalty rises to Rs 2 for each Rs 100 that is missed. This system encourages timely payments to ensure the full benefits of the scheme are maintained.