New Delhi: State Bank of India has launched a new recurring deposit (RD) scheme to promote small savings. It has been named Har Ghar Lakhpati. Under this scheme, you will be able to deposit one lakh rupees or more in your account by depositing small amounts every month. You will become a lakhpati when the deposit matures.

Interest will be paid in three months

According to the information given on the SBI website, RD is a deposit account in which you deposit a fixed amount every month. While opening the account, you choose the limit of the amount to be deposited every month and for how long you want to deposit it. You get interest on the fixed amount deposited every month, which is compounded on a quarterly basis, that is, the interest amount is credited to your account every three months.

Minor can open single account

Under this scheme, any person can open an account singly or jointly. If a minor above the age of 10 years is able to sign clearly and correctly, he can open a single account or jointly with his parents. In this, you can deposit money for a period of three to ten years. However, during this period, if the amount deposited is less than Rs 5 lakh (principal), then a penalty of 0.50 per cent will have to be paid on premature withdrawal. If the principal is more than Rs 5 lakh, then a penalty of 1 per cent will have to be paid on premature withdrawal in all periods.

How much interest will you get

According to the SBI website, the interest rate on this will be 0.50 to 1 percent less than the interest rate applicable at the time of opening the account. However, no interest will be given on deposits made for a period of less than 7 days. Along with this, if you do not pay the installment on time, then for RD of five years or less, if you deposit Rs 100 per month, then a penalty of Rs 1.50 per month will be charged. For RD of more than five years, a penalty of Rs 2.00 will have to be paid on Rs 100 per month.

Who will get more interest

Let us tell you that the interest rate on RD for three and four years is 6.75 percent for ordinary citizens and 7.25 percent for senior citizens, while the interest rate for other periods is 6.50 percent for ordinary citizens and 7 percent for senior citizens. Another thing to keep in mind is that if you do not pay the installment for six consecutive months, your account will be closed prematurely and the amount will be transferred to the account holder's SBI savings account.