SBI's Har Ghar Lakhpati RD: Invest Rs 2,500 monthly to get Rs 1 lakh

Public sector bank SBI has launched a game-changing initiative: Har Ghar Lakhpati. This pre-calculated Recurring Deposit (RD) scheme is designed to help individuals and families accumulate Rs 1,00,000 or its multiples, making it easier than ever to reach your financial goals.

 

According to the SBI website, “An RD (recurring deposit) account is a deposit account where you deposit a fixed sum of money each month. The monthly fixed amount and tenure are chosen by you when you open the account. The fixed amount you deposit each month earns interest which is compounded quarterly.” 

 

What Is Har Ghar Lakhpati?

The Har Ghar Lakhpati scheme caters to the common aspiration of building savings without the complexities often associated with investment plans. By simplifying the saving process, it empowers customers to plan effectively and cultivate a habit of saving.

 

The scheme is inclusive—available not only to adults but also to minors.

 

Flexible Tenure Options

Customers can choose a minimum tenure of 12 months (one year) up to a maximum of 120 months (10 years), providing the flexibility to align savings with personal financial milestones. This way, whether you’re saving for a dream vacation, a wedding, or a new home, you can tailor the duration to fit your aspirations.

 

Competitive Interest Rates

While the recurring deposit scheme offers interest rates similar to fixed deposits, SBI is committed to providing attractive returns. Currently, for tenures above one year, customers can enjoy a rate of 6.80%, which increases to 7% for tenures beyond two years. For longer commitments, rates vary from 6.75% to 6.5% depending on the tenure.

 

A Focus on Seniors

SBI also understands the needs of senior citizens, particularly those aged 80 years and above. With the introduction of the SBI Patrons scheme, seniors can benefit from enhanced interest rates, further reinforcing the bank’s commitment to its valued customers.

 

How to Get Started

• Opening a Har Ghar Lakhpati account is straightforward. Customers can visit their nearest SBI branch or utilize the bank’s online services for hassle-free registration.
• All resident individuals can open an account singly or jointly. A minor who is above 10 years of age and can sign legibly can open an account alone otherwise he/she can open the account with his or her parents/ legal guardian.
• The period of investment is 3 to 10 Years.
• It should be noted that the interest rate offered for a three and four-year tenure is 6.75% for general residents and 7.25% for senior citizens. For other tenures, the interest rate is 6.50% for regular citizens and 7% for seniors citizens.
• For all tenors, the penalty for early withdrawal will be 0.50% if the payment amount is less than Rs 5 lakh (Principal). If payment amount is above Rs 5 lakh, the applicable penalty will be 1% (all tenors).
• If the recurring deposit installment is not paid on time, the penalty is Rs 1.50 for every 100 recurring deposit per month for RD tenors of five years or less. For RD tenors longer than five years, the penalty payable is Rs 2.00 for every Rs 100/-per month.

•  

If you're wondering how much you need to invest monthly to achieve that Rs 1 lakh goal, here are some simple calculations based on current interest rates:

 

• If a regular (non-senior) citizen invests Rs 2,500 every month for three years at an interest rate of 6.75%, they can accumulate Rs 1 lakh by the end of the term.
• Alternatively, by investing Rs 1,810 every month for four years at the same interest rate, a citizen can also reach Rs 1 lakh.
• For a longer commitment, if a regular citizen invests Rs 1,407 every month for five years at an interest rate of 6.50%, they can achieve the same goal.

 

Senior citizens: 

• 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 three years, with an interest rate of 7%, he/she can get Rs 1 lakh at the end of the term.