SBI Har Ghar Lakhpati Scheme: How much do you need to deposit every month to build ₹1 lakh?

“The scheme will enable our customers to accumulate ₹1 Lakh or above in their accounts by depositing small savings every month and become ‘lakhpati’ on maturity of the deposit,” SBI said.

Who can open the account?

All resident individuals are eligible to open the account either singly or jointly. Minors above 10 years of age who can sign legibly can open an account independently. Others can open the account with their parent or legal guardian.

How much do you need to save every month?

For the general public, the monthly instalment is ₹2,510 for a three-year tenure, ₹1,820 for four years, ₹1,420 for five years, ₹1,150 for six years, ₹960 for seven years, ₹810 for eight years, ₹700 for nine years and ₹610 for a 10-year tenure.

For senior citizens, the monthly instalment is ₹2,500 for three years, ₹1,810 for four years, ₹1,410 for five years, ₹1,130 for six years, ₹940 for seven years, ₹800 for eight years, ₹680 for nine years and ₹600 for 10 years.

The scheme allows customers to choose a maturity amount of ₹1 lakh or multiples of ₹1 lakh, with the corresponding monthly instalment and tenure.

For the general public, the interest rate is 6.55% for three- and four-year tenures and 6.30% for five- to 10-year tenures.

SBI staff and staff who are senior citizens are eligible for separate interest rates.

The deposit can be held for a period of three to 10 years. The maturity amount is rounded off to the nearest rupee and is paid 30 days or one month after the last instalment is deposited, or on the expiry of the deposit period, whichever is later.

Partial payment of an instalment is allowed. Customers can also make instalment payments in advance, although this does not change the maturity amount.

Delayed instalments attract a penalty. For an RD tenure of five years or less, the penalty is ₹1.50 for every ₹100 per month. For tenures of more than five years, the penalty is ₹2 for every ₹100 per month.

However, the penalty cannot exceed the interest payable to the depositor.

If six consecutive instalments are not received, the account will be prematurely closed and the balance will be paid or transferred to the account holder’s linked savings account.

SBI also levies a ₹10 service charge on RD accounts paid out on or after maturity if three or more consecutive instalments have been missed and the account has not been regularised.

What if you want to withdraw the money early?

Premature closure is allowed, but a penalty applies.

For deposits where the principal is up to ₹5 lakh, the premature withdrawal penalty is 0.50% across all tenures. For deposits above ₹5 lakh, the penalty is 1%.

The applicable interest rate on premature withdrawal will be 0.50% or 1% below the rate applicable when the deposit was opened, for the period the money remained with the bank, or 0.50% or 1% below the contracted rate, whichever is lower.

No interest is paid if the deposit remains with the bank for less than seven days.

Tax deduction at source (TDS) is applicable as per the prevailing income-tax rules.