Recurring Deposits

With SBM Bank Recurring Deposits, you can take advantage of term deposits rates without the need for lumpsum investments. With our RDs, you can invest a fixed amount in a high-interest-generating deposit monthly. We offer flexible RD tenure – you can opt for a preferred tenure per your investment goals. Our RDs offer assured returns with up to 8.25%* per annum recurring deposit interest rates. You can instantly book a Recurring Deposit online with our convenient digital banking platforms. basis. We offer flexible RD tenure – you can opt for a preferred tenure per your investment goals. Our RDs offer assured returns with up to 8.25%* per annum interest rate. You can instantly book a Recurring Deposit online with our convenient digital banking platforms.

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Recurring Deposits

Key Features

Our Recurring Deposits offer a convenient way to grow your wealth. The following are the features:

Instant Onboarding

Instant Onboarding

You can open an SBM Bank RD instantly with our Internet Banking and Mobile Banking platforms. Alternately, you can get in touch with your Relationship Manager and request for RD opening. You can also visit your nearest SBM Bank branch to book a Recurring Deposit offline.

Flexible Investment Tenur

Flexible Investment Tenure

You can choose to stay invested for a minimum tenure of six months, or a maximum tenure of ten years. You can opt for your preferred tenure at the time of RD booking.

Premature Encashment Facility

Premature Encashment Facility

In the event of a financial emergency, you can close the RD before its maturity. The principal and interest amount accrued till the withdrawal day is credited to your bank account. If you withdraw the fund before the minimum tenure, you will not earn interest.

Competitive Interest Rates

Competitive Interest Rates

With SBM Bank, you enjoy Recurring Deposit interest rates up to 8.25%* per annum. Resident Indian senior citizens can avail themselves of a higher interest rate, i.e., 0.5%* per annum over and above the regular recurring deposit interest rates. Please note that RD interest rates may vary depending on the tenure.

Nomination Facility

Nomination Facility

You can assign a nominee to receive your Recurring Deposit proceeds. You can nominate an individual at the time of Recurring Deposit Account opening, or at any time before maturity. If the nominee is a minor, you must assign an adult individual to receive the proceeds on behalf of the minor.

Loan Against RD

Loan Against RD

You can pledge your RD as a security and avail of a loan against it. You can receive a percentage of the Recuring Deposit funds as your loan amount. With this loan facility, you can deal with financial crisis without breaking your RD.

Insured Deposits

Insured Deposits

At SBM Bank, we ensure your deposits stay secure. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India (RBI), insures your Recurring Deposit funds for up to INR 5,00,000/-.

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Benefits

The following are the benefits of investing in a Recurring Deposit:

Assured Returns

RD interest rates do not fluctuate with the market. Once you select your RD tenure, the corresponding interest rate will be applicable throughout the tenure until maturity.

Disciplined Investments

Through fixed investments at uniform intervals, RDs can instil the habit of saving. Also, the bank will levy a penalty for defaulting on RD payments.

Contingency Fund

With longer tenures, you can build a contingency fund by consistently investing in RDs. You can reinvest the RD maturity amount and continue savings towards your contingency fund.

Tax Benefit For Senior Citizens

The bank charges ‘tax deducted at source’ (TDS) on your RD interest earnings if they exceed INR 40,000/-. Senior citizens can avail of a higher TDS exemption threshold of INR 50,000/-.

RD Interest Rates

At SBM Bank, you can take advantage of our high Recurring Deposit interest rates. You can enjoy attractive interest rate, with an extra 0.5%* interest rate for Resident Indian senior citizens. Share your details here and our representative will reach out to assist you.

How To Invest In SBM Bank RDs

You can invest in an RD online or offline.

Internet Banking & Mobile Banking

A Fixed Deposit enables you to invest funds for a pre-decided tenure and earn interest at a pre-determined rate. You can select the interval at which you wish to receive interest payouts and will receive the principal amount upon maturity.

Bank Branch

You can visit your nearest SBM Bank branch to open an RD. Our bank representative will assist you with the Recurring Deposit Account opening process.

How To Renew Your RD

After your RD matures, you can choose to either renew it or close it. Upon RD closure, the accrued principal and interest amount are credited to your SBM Bank account. Alternatively, you can choose to renew your RD. We will renew your Recurring Deposit for the same tenure at the prevailing interest rates.

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Related Products

Accounts

At SBM Bank, you can place your funds securely in our Account offerings. You can earn competitive interest rates with our Savings Account and NRE/NRO Account. As a returning NRI, you can park any foreign currency in a Resident Foreign Currency (RFC) Account.

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Home Loans

Whether you want to purchase a ready-to-move-in flat, under-construction property or a plot of land, our Home Loans offer attractive interest rates and flexible repayment structures. You can also avail of our Home Loans for home improvement or extension projects.

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Debit Cards

At SBM Bank, we offer a range of premium Debit Cards, each accompanied by special features and offers. Notable features include unlimited free ATM cash withdrawals, airport lounge access, discounts and cashbacks on online and offline shopping.

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FAQs

Yes, it is. Per income tax regulations, interest earned from RDs is considered as income. Hence, RD interest will be taxable and the tax applicable will be per your income tax slab.

You can open an RD if you fall under the following categories:

  • Resident Indians
  • Hindu Undivided Families
  • Private & Public Limited Companies
  • Trusts & Societies

While booking your RD, you can select the date for payment of the deposit amount towards your RD. The bank will deduct the equivalent RD amount every month on the selected date.

Yes, you can. You can open an SBM Bank RD jointly with two additional individuals. You can operate the account on ‘either or survivor’, ‘anyone or survivor’ or ‘former or survivor’ basis.

We levy 1% of the RD principal amount as a penalty for withdrawing the RD funds before maturity.

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