SBI Scheme: If you’re looking to establish a risk-free fund for your children’s higher education, marriage, or any significant goal, the ‘Har Ghar Lakhpati Scheme’ from the State Bank of India (SBI), the largest public sector bank in the country, could be an excellent choice for you.
This is SBI’s premier recurring deposit (RD) scheme, allowing you to easily accumulate a corpus of Rs 1 lakh or more through small monthly contributions. Let’s break down the eligibility, interest rates, maturity rules, and calculations for this scheme in straightforward terms.
What is SBI’s ‘Har Ghar Lakhpati’ scheme?
This is a unique recurring deposit (RD) scheme provided by the State Bank of India. Its main goal is to encourage regular savings among the general public and the middle class. Customers can select a tenure ranging from 3 to 10 years, based on their convenience and financial objectives. By depositing a fixed amount each month, you can secure a guaranteed corpus of Rs 1 lakh or more at maturity.
Who can open this account?
SBI has designed this scheme to be very accessible for everyone. Any citizen can open this account, either individually or jointly. Children aged 10 and above who can sign on their own can open this account in their name. For younger children, their parents or legal guardians can set up the account.
How can you make Rs 1.10 lakh by depositing Rs 600 per month?
See how small monthly savings can accumulate into a substantial corpus over time, using this calculation based on SBI’s example:
Monthly Installment: Rs 600 per month
Tenure: 10 years (120 months)
Total Investment: Rs 72,000 (over 10 years)
Estimated Returns: Approximately 8% (under Employee/Senior Citizen/Special Rates)
Total interest: around Rs 38,000
Total amount on maturity: Roughly Rs 1.10 lakh
How much investment is needed each month to build a fund of Rs 1 lakh?
The shorter the term you select, the higher your monthly installment will be. Here’s the approximate calculation for various tenures to achieve a corpus of Rs 1 lakh.
Which category of customer will get how much interest?
The interest rates under the Har Ghar Lakhpati scheme depend on the tenure you choose and your category:
General Citizens: Interest rate up to 6.55% for 3 to 4 years tenure and 6.30% for 5 to 10 years tenure.
Senior Citizens: Interest rate 0.50% higher than normal citizens i.e. from 6.80% to 7.05%.
SBI Staff and Retired Employees: They are offered special premium interest rates, even higher than ordinary citizens and senior citizens.
Premature Withdrawal and Penalty
If you need to withdraw money before maturity due to an emergency, some SBI rules apply:
Within 7 days: No interest will be earned on withdrawals made within 7 days of account opening.
For deposits up to Rs 5 lakh: Premature closure will attract a penalty of 0.50%.
For deposits above Rs 5 lakh: A penalty of 1% will be deducted on premature withdrawal.
Tax Rules: TDS and tax will be applicable as per Income Tax rules on the interest earned on this scheme.