People have become very sincere about the investment schemes in various banks. However, there are few of the things that remain stand out and Recurring Deposit is one of them. The State Bank of Hyderabad offers the best schemes and rates for Recurring Deposits or RD.
What is Recurring Deposit?
Recurring Deposits are the flexible scheme from SBH that helps you to invest and save money regularly. It is a modified form of Fixed Deposits. In Fixed Deposits, a customer needs to deposit a lump sum amount to SBH for a particular time and then withdraw the same after the maturity period. The RD is slightly different.
You can choose to pay small amounts every month, for example, INR 1000 to the RD Account. However, you have to select the maturity period and select a particular RD amount every month. Now, you can have the amount transferred to your RD account and enjoy the same interest rate as Fixed Deposit.
This is not only one of the best schemes by SBH but also very beneficial for the customers. You can invest money on monthly basis and enjoy a good return with a good interest rate. The RD is secured and safe and best for those who do not have a huge amount at a time. You can enjoy the same benefits as a Fixed Deposit with Recurring Deposit.
SBH Recurring Deposits Features:
- You do not need bulk amount like Fixed Deposit to enter into the scheme. All you have to do is to simply deposit the money every month and get the benefits. You can even automate your payment so you need not to bother about the payment every month.
- You can save and invest for future endeavors pretty easily with the RD. RD for car or trips after some particular time can be very effective. You can keep the money invested for the period and let it grow.
- Unlike other investment schemes, the RD does not have fluctuating interest rates. The interest rates of RD and FD remains the same.
- There is basically no TDS on the interest amount of the RD. So, basically, all the money that you have invested with the RD of SBH gets fully credited to your account after the maturity period.
- RDs are generally linked to saving bank account. It is easy to transfer the amount from the bank and at the same time, it is easy to get the matured amount back to the savings bank account as well. So, all you have to do is to do the RD transaction on time and enjoy the benefits.
SBH Recurring Deposit Scheme Details
SBH offers one of the best Recurring Deposit schemes. The tenure of the RD can be between 12 months or 1 year to 10 years and rates are the same as of SBH fixed deposit. One must not withdraw the money between the tenure.
However, if the money is withdrawn then 1% of Tax is deducted on the principal amount. The interest rate of the RD differs with the maturity range. If the maturity is within 1 year to 10 years then the interest rate is 6.00% for the normal public and 6.50% for the senior citizens for the amount below 1 crore only.
For amount above 1 crore interest rates are given below in table 2019:
|Time Period||Below 1 crore
| Above 50 crores
|1 Year to 2 Years||6.80%||6.70%||6.70%||6.70%||6.70%|
|2 Years to 3 Years||6.80%||6.75%||6.75%||6.75%||6.75%|
|3 Years to 5 Years||6.80%||6.80%||6.80%||6.80%||6.80%|
|5 Years to 10 Years||6.85%||6.85%||6.85%||6.85%||6.85%|
Table Updated: 17 February 2019
The Recurring Deposits are considered one of the best schemes and SBH welcomes all for the RD and other investment schemes.