SBI Scheme: State Bank of India (SBI) has launched ‘Har Ghar Lakhpati’ scheme for savers, which gives an easy way to small investors to build a big fund by saving money. Under this scheme, with monthly savings of just less than Rs 600, investors can create a corpus of Rs 1 lakh or more in 10 years. This scheme is for those who want fixed returns without any risk. It offers an attractive interest rate of 6.75% for general customers and 7% for senior citizens, which helps in converting your small savings into big goals.
If you want to create a big fund by saving a little every month, then SBI’s Har Ghar Lakhpati Scheme can be the right option for you. This is a special type of Recurring Deposit (RD) scheme, in which you have to deposit a fixed amount every month. At the end of the plan period, the bank returns the money to you in lump sum along with interest. The objective of this scheme is to give customers an opportunity to make big savings through small monthly investments. In RD account, the bank gives compound interest on quarterly basis, due to which your savings grow faster.
The interest rates in SBI’s Har Ghar Lakhpati Scheme are different for General Public and Senior Citizens. The duration of the plan ranges from 3 years to 10 years. Customers have to choose the maturity period while opening an RD account. If there is a need to withdraw money prematurely or close the account, a small penalty may have to be paid.
At present the interest rates are as follows:
General Public-
If you want to raise Rs 1 lakh in SBI’s Har Ghar Lakhpati scheme, then your monthly investment plan will be like this:
In 3 years: With 6.75% interest rate you will have to deposit ₹2,502 every month.
In 4 years: Monthly investment with 6.75% interest rate will be ₹1,812.
In 5 years: ₹ 1,409 will have to be invested every month at 6.50% interest rate.
In 10 years: With 6.50% interest rate, the monthly deposit will be only ₹ 593.
senior citizens
For senior citizens, the method of depositing Rs 1 lakh in this RD scheme of SBI is easier, because they get high interest.
To raise Rs 1 lakh in 3 years: Deposit only Rs 2,482 every month with 7.25% interest.
For Rs 1 lakh in 4 years: Monthly investment with 7.25% interest would be ₹1,793.
For Rs 1 lakh in 5 years: Only ₹1,391 to be paid every month with 7.00% interest.
To get Rs 1 lakh in 10 years: Deposit just Rs 576 monthly with 7.00% interest.
If premature closure is done in the bank’s RD scheme “Har Ghar Lakhpati”, the investor will be penalized. 0.50% penalty will be applicable on principal up to ₹5 lakh and 1% penalty will be applicable on principal above ₹5 lakh. The interest rate will be 0.50% or 1% depending on the tenure of the deposit, whichever is lower. But no interest will be given on deposits for less than 7 days. If the installment is deposited early, there will be no impact on the maturity amount, but if the installment is deposited late, penalty will be deducted from the maturity amount.
The process of opening an account in SBI’s Har Ghar Lakhpati scheme is simple and convenient. Customers can apply by visiting their nearest SBI branch or through online mode. In this, it is mandatory to submit documents like identity card, address proof and passport size photo. After opening the account, the monthly deposit amount can be decided. Both offline and online options are available for investment, due to which this scheme can be opened easily.
Who can open RD?
Any Indian citizen can invest in SBI’s Har Ghar Lakhpati Scheme. Individuals can open a single or joint account. Parents (or guardians) can also open an account with their child above 10 years of age who can sign legibly.
Tax rules on RD interest
If the annual interest from Recurring Deposit (RD) is up to ₹ 40,000 (₹ 50,000 for senior citizens), then no tax is to be paid on it. But if the interest is more than this, the bank deducts 10% TDS.
If tax is not levied then submit Form 15G/15H
If the RD interest is more than ₹40,000 (₹50,000 for senior citizens) but your total income is less than the tax limit, the bank will not deduct TDS. For this, senior citizens have to submit Form 15H and other people have to submit Form 15G.
Form 15G and 15H are forms in which you declare that your income is outside the tax limit.
Disclaimer: Information related to this scheme has been taken from the official website of SBI. For more information related to any investment visit only the official website.