How to become rich with SBI's New Recurring Deposit Scheme? EXPLAINED

How to become rich with SBI's New Recurring Deposit Scheme: State Bank of India (SBI), the country’s largest bank, has launched two new deposit schemes, Har Ghar Lakhpati and SBI Patrons, designed to provide customers with greater financial flexibility and enhanced value.

“We aim to create goal-oriented deposit products that enhance financial returns and align with our customers' aspirations. We are redefining traditional banking to make it more inclusive and impactful. At SBI, we are committed to leveraging innovation and technology to deliver solutions that empower every customer seamlessly. We are committed to fostering financial inclusion and empowerment to contribute to India’s growth journey towards becoming a developed nation by 2047,” stated CS Setty, Chairman of the State Bank of India.

How to become rich with SBI's new recurring deposit scheme?

Har Ghar Lakhpati is a pre-calculated RD to accumulate a sum of ₹1,00,000 or its multiple. Recognising the widespread aspiration for financial security, ‘Har Ghar Lakhpati,’ a pre-calculated Recurring Deposit scheme designed to help customers accumulate ₹1,00,000 or multiples thereof. This product simplifies achieving financial goals, allowing customers to plan and save effectively. This product is also available to minors, encouraging early financial planning and savings habits.

The minimum tenure of recurring deposits is 12 months (one year), and the maximum is 120 months (10 years).

SBI Patrons – A term deposit product for senior citizens aged 80 years or above

SBI has also introduced ‘SBI Patrons,’ a specialized Term Deposit scheme tailored for seniors 80 years and above. This product offers enhanced interest rates. SBI Patrons is available to existing and new term deposit customers.

SBI Patron's depositors would earn an additional 10 basis points higher interest rate than what is offered to senior citizens. In contrast, the recurring deposit scheme would offer rates similar to those offered on fixed deposits.

At present, the fixed deposit rate for tenures above one year is 6.80 percent; for tenures above two years, 7 percent; for tenures above three years to less than five years, 6.75 percent; and for tenures 5-10 years, 6.5 percent.

Meanwhile, to expedite the opening of NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts, the bank has introduced a TAB-based end-to-end digital onboarding procedure for NRIs. This project uses digital tools to improve the efficiency and convenience of account opening. It is available at all SBI branches in India and a few overseas locations.

Read all our personal finance stories here