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The SBI Recurring Deposit (RD) Scheme is a great savings option for individuals who want to invest a fixed amount regularly and earn good returns over time. In this scheme, by depositing ₹1000 each month, you can accumulate up to ₹1,25,000 at the end of the tenure.

Key Features of SBI RD Scheme:

1. Minimum Deposit: You can start with as little as ₹100 per month. You can also choose to deposit ₹1000, ₹5000, or a higher amount as per your convenience.
2. Tenure: The deposit period can range from 12 months to 10 years.
3. Interest Rate: Interest rates typically range from 6.5% to 7.5%, though they may change based on the bank's policy.
4. Flexibility: You can choose a monthly deposit amount based on your affordability.
5. Safety: As it is a government-backed bank scheme, your investments are completely safe.

How Much Will You Earn by Depositing ₹1000 Per Month?

If you deposit ₹1000 every month for 10 years at an interest rate of 7%, you can expect to receive around ₹1,25,000 as your total return, which includes both the principal and earned interest.

Benefits:

1. Compound Interest: You will earn interest on both the principal and the accumulated interest, making your investment grow faster.
2. Tax Benefits: Some RD schemes may offer tax exemptions under certain conditions.
3. Loan Facility: You can also take a loan against the amount accumulated in your RD account.

How to Open an SBI RD Account?

1. Online:
   • Visit SBI’s official website.
   • Navigate to the "Fixed Deposit" section and choose "Recurring Deposit."
   • Fill in the required details like the amount and tenure and complete the application.
2. Offline:
   • Visit your nearest SBI branch.
   • Fill out the application form and submit the necessary documents.

Required Documents:

• Proof of Identity (Aadhaar card, PAN card)
• Proof of Address
• Bank Account details

SBI’s Recurring Deposit (RD) is an excellent choice for regular savers who want to build a fund while earning a decent return. This scheme is ideal for small investors who wish to create a substantial savings corpus through consistent deposits over time.