India’s biggest government bank, the State Bank of India (SBI), has rolled out a new recurring deposit scheme called ‘Har Ghar Lakhpati’. This initiative aims to help people save a little each month and potentially earn Rs 1 lakh or more.

 

Here’s what you need to know about the ‘Har Ghar Lakhpati’ scheme:

 

This plan is perfect for anyone looking to save a set amount monthly while earning interest on their deposits. You can choose a flexible tenure that ranges from 3 to 10 years.

 

Eligibility: The scheme is available to everyone, including kids over 10. If a child can’t sign, a parent or legal guardian can open the account for them.

 

How does it work?

 

Participants will deposit a small sum each month for a specified period. The total amount at maturity starts at Rs. 1 lakh. The monthly contribution varies based on the term you select:

 

1. For instance, if you put in Rs. 2,500 each month for 3 years, you’ll receive Rs. 1 lakh at maturity.

 

2. If you opt for a longer term of 10 years, your monthly deposit drops to Rs. 591.

 

3. The monthly amount will be based on the interest rate when you open the account.

 

Interest rates and tax perks

The interest rates for this scheme differ based on the customer type:

 

– General customers: Up to 6.75%

– Senior Citizens: Up to 7.25%

– SBI employees and senior citizen employees: Up to 8%

 

Keep in mind that TDS (Tax Deduction at Source) will apply to the interest earned, following income tax regulations.

 

To set up an account with the ‘Har Ghar Lakhpati’ scheme, just head over to your closest SBI branch. Make sure to bring the necessary documents, choose how much you want to save and for how long, and the bank will figure out your monthly payments based on your choices.

 

By the way, the ‘Har Ghar Lakhpati’ scheme is a super convenient way to save money gradually. It offers attractive interest rates and lets you kick things off with low monthly payments, making it a solid choice for anyone wanting to grow their savings.

 

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