An SBI Recurring Deposit (RD) is a savings account where you put a fixed amount every month. The time period can be from 6 months to 10 years. The bank pays you interest on your deposits, and the interest is added every three months.
The best part of an RD is that it makes you save regularly. With time, your savings grow into a good amount without much effort.
How Does ₹5,000 Monthly Investment Work?
If you save ₹5,000 every month in an SBI RD, you deposit ₹1,80,000 in 3 years. On top of that, you also earn interest.
SBI generally gives around 6.5% to 7% interest on RDs. The interest is added quarterly, so your money grows more than simple interest. This helps you reach your goal faster.
How Much Will You Get After 3 Years?
After 3 years, your total savings and interest will be about ₹1.9 lakh. Out of this, ₹1.8 lakh is your own deposit, and the rest is interest earned.
The table below shows an example:
| Monthly Deposit | Tenure | Total Deposit | Approx Maturity Amount |
| ₹5,000 | 36 months | ₹1,80,000 | ₹1,90,000 |
This is a safe and fixed return, which makes SBI RD better for people who don’t want to take risks.
Why Choose SBI Recurring Deposit?
There are many reasons people choose SBI RD:
- SBI is India’s biggest public bank, so your money is safe.
- Interest rates are good and are compounded quarterly.
- You can start with a small amount every month.
- Flexible tenure and deposit options make it easy for everyone.
- Easy to open both online and offline.
Benefits of SBI Recurring Deposit
SBI RD helps you save money in a regular way. It stops you from spending that money on small things. You can use this saving later for trips, gadgets, or studies.
It also gives tax benefits under Section 80C, up to ₹1.5 lakh in a year if you choose the tax-saving RD option. Interest earned is taxable, but you still save a good amount.
If needed, you can break the RD before maturity. However, you will get less interest because of penalty. This option gives you some flexibility during emergencies.
How to Open an SBI Recurring Deposit?
You can open SBI RD in two ways:
- Visit your nearest SBI branch with Aadhaar, PAN, and address proof.
- Use SBI’s online portal or mobile app.
Once opened, you can set auto-debit for ₹5,000 every month. This way, the money will go directly from your savings account to RD, and you will never miss a deposit.
Who Should Consider SBI Recurring Deposit?
SBI RD is good for people who want safe and steady savings. Salaried people, homemakers, students, and retirees can all benefit from it.
It is perfect if you want to save for short or medium-term goals like a car down payment, vacation, or education expenses.
Things to Keep in Mind Before Investing
- Interest earned is taxable as per your income tax slab.
- Returns may not beat inflation in the long run.
- Breaking the RD early reduces your interest.
- Always check current SBI RD interest rates before opening.
Conclusion
Investing ₹5,000 every month in SBI Recurring Deposit helps you build about ₹1.9 lakh in 3 years. It is safe, risk-free, and easy to manage.
If you want simple savings without market risks, SBI RD is one of the best options. It is a smart way to grow money with guaranteed returns.
Disclaimer: The information in this blog post is intended for general informational purposes only and should not be construed as financial advice. Interest rates mentioned are indicative and may change over time. Before making any investment decisions, investors should check current rates and terms with SBI or seek advice from a financial advisor. Returns are subject to applicable taxes and other charges outlined in government regulations.