State Bank of India (SBI) has introduced a new recurring deposit (RD) scheme called ‘Har Ghar Lakhpati’.
This scheme is aimed at individuals who wish to build a large fund by saving a small amount from their monthly salary. With this scheme, you can easily accumulate Rs 1 lakh or more.
How does this scheme work?
With SBI’s scheme, you can save monthly for a flexible period of 3 to 10 years.
For instance, depositing ₹2,500 each month for 3 years will result in ₹1 lakh at maturity.
If you invest for 10 years, the monthly installment drops to ₹591. Both the monthly installment and interest rates are fixed when you start the scheme.
Interest rates and benefits
- The interest rate for regular customers is up to 6.75%.
- Senior citizens receive interest up to 7.25%.
- SBI employees and senior employees enjoy interest up to 8%.
- However, TDS is applicable on this scheme as per Income Tax rules.
Children can also open an account
Children aged 10 and above can invest in this scheme if they know how to sign.
For those who cannot sign, an account can be opened with a parent or guardian.
Flexibility and fines
The scheme allows partial installments, but there is a penalty for delayed payments.
The penalty ranges from ₹1.50 to ₹2 for every ₹100 installment. If 6 consecutive installments are missed, the account will be closed, and the remaining amount will be transferred to the savings account.
How to open an account?
To avail of the scheme, visit your nearest SBI branch and submit the necessary documents.
You will need to choose the maturity amount and investment period, which will determine the monthly installment.
SBI’s Har Ghar Lakhpati Yojana is an excellent opportunity for small investors.
It encourages saving habits and offers an easy way to build a large fund with a small contribution.
