Saving a large amount of money can seem difficult, especially when you have several financial responsibilities.
But what if you could build a corpus of over ₹1 lakh by saving a small amount every month?
The State Bank of India’s Har Ghar Lakhpati Scheme is a recurring deposit plan designed to help customers build savings through regular monthly deposits.
Depending on your financial goal, you can choose a tenure of 3 to 10 years.
The longer the tenure, the lower the monthly amount required to reach a target of ₹1 lakh.
Who Can Open an SBI Har Ghar Lakhpati Account?
The Har Ghar Lakhpati Scheme is an SBI recurring deposit plan that can be opened either individually or jointly.
Children aged 10 years and above who can sign independently can open an account in their own name.
For younger children, parents or legal guardians can open the account on their behalf.
The monthly deposit depends on the selected tenure and the target maturity amount.
How Much Do You Need to Save for ₹1 Lakh?
The amount you need to deposit every month depends on how quickly you want to reach your target.
For a target of around ₹1 lakh, the approximate monthly contributions can be:
3 years: ₹2,510 per month
5 years: ₹1,420 per month
10 years: Around ₹610 per month
This means choosing a longer investment period can significantly reduce the amount you need to save every month.
How Can ₹600 a Month Become More Than ₹1 Lakh?
According to SBI’s illustration, saving around ₹600 every month for 10 years at an assumed return of 8% could help build a corpus of approximately ₹1.10 lakh.
Over 10 years, your total deposits would be around ₹72,000.
The remaining amount, nearly ₹38,000, would come from interest, based on the assumed return in the illustration.
However, the actual maturity amount can vary depending on the applicable interest rate and SBI’s terms.
What Interest Rate Does SBI Offer?
The interest rate depends on the deposit tenure and customer category.
According to the information provided, general customers earn around 6.55% for three- and four-year deposits, while the rate is around 6.30% for longer tenures mentioned in the scheme details.
Senior citizens can receive higher rates, ranging from around 6.80% to 7.05%.
Eligible SBI employees and retired employees may receive additional benefits as per applicable rules.
Since the monthly instalment is calculated using the applicable interest rate, changes in rates can affect the required deposit and maturity amount.
Can You Pay Deposits in Advance?
The scheme provides some flexibility in making deposits.
In certain situations, customers can deposit part of their monthly instalment, and future instalments may also be paid in advance.
However, paying instalments early does not increase the maturity amount.
The final amount is paid after the selected tenure or completion of the required instalments, subject to SBI’s rules.
Applicable taxes will also depend on prevailing income tax rules.
Can You Withdraw the Money Before Maturity?
Yes, premature closure of the account is allowed if you need the money before the maturity date.
However, a penalty can reduce the interest earned.
For deposits of up to ₹5 lakh, a 0.50% penalty applies, while deposits above ₹5 lakh can attract a 1% penalty, subject to the applicable rules.
There is also an important condition: no interest is paid if the deposit is withdrawn within seven days of opening the account.
Is the Har Ghar Lakhpati Scheme Right for You?
The SBI Har Ghar Lakhpati Scheme can be useful for people who prefer disciplined monthly savings and have a long-term financial goal.
The biggest advantage is that you can spread your savings over several years instead of arranging a large amount at once.
However, before investing, check the current interest rate, tenure, tax rules, maturity conditions and premature withdrawal charges.
If your goal is to build a corpus of ₹1 lakh or more through regular monthly savings, comparing the scheme with other available savings and investment options can help you make a better decision.
