Lump sum investment requires a large amount of money and offers good returns. However, not everyone has that much money readily available. For such individuals, a Recurring Deposit (RD) is an ideal option. In an RD, a fixed amount is deposited every month, earning interest. At the end of the tenure, the investor receives the total amount, including both the principal and interest.

Recently, SBI launched the ‘Har Ghar Lakhpati’ scheme, which is a type of recurring deposit. In this scheme, a fixed amount is deposited every month. At the end of the tenure, the investor receives a return of ₹1 lakh or its multiple. This scheme is perfect for those who wish to build a large corpus with a small monthly investment.

Let’s assume someone wants to save ₹5 lakh over a tenure of 3 years, 5 years, or 7 years. How much should they invest monthly? What is the required investment amount for both general customers and senior citizens? Here is the complete calculation.

Who Can Invest in the ‘Har Ghar Lakhpati’ Scheme?

According to the official website of SBI, the ‘Har Ghar Lakhpati’ scheme is available to any resident of India. It can be opened as a single or joint account. A minor aged 10 years or older can open an account independently, or a joint account can be opened with a parent or legal guardian.

Also Read – SBI RD scheme 3-year to 10-year duration, simple way to become lakhpati

Interest Rates

The interest rate depends on the scheme’s tenure. For a tenure of 3 to 4 years, the interest rate is 6.75%. For 5 to 10 years, the interest rate is 6.50%. Senior citizens enjoy slightly higher interest rates: 7.25% for a tenure of 3 to 4 years and 7.00% for 5 to 10 years.

Monthly Investment Required to Achieve ₹5 Lakh

For a 3-year tenure:

  • General customers need to invest ₹12,506.10 per month.
  • Senior citizens need to invest ₹12,408.55 per month.

For a 5-year tenure:

  • General customers need to invest ₹7,043.16 per month.
  • Senior citizens need to invest ₹6,950.93 per month.

For a 7-year tenure:

  • General customers need to invest ₹4,697.17 per month.
  • Senior citizens need to invest ₹4,609.91 per month.