State Bank of India’s (SBI’s) Two New Deposit Schemes

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About Har Ghar Lakhpati Scheme:

It is a pre-calculated recurring deposit scheme designed to help customers to accumulate Rs 1 lakh or multiples thereof.
The new scheme simplifies the process of achieving financial goals, allowing customers to plan and save effectively.
This product is also available to minors, encouraging early financial planning and savings habits.
The minimum tenure of recurring deposits is 12 months (one year), and the maximum is 120 months (10 years).

About SBI Patrons Scheme:

This is a specialized fixed deposit scheme tailored for senior citizens aged 80 years and above.
It offers enhanced interest rates, recognizing the long-standing relationship many senior customers have with the bank.
SBI Patrons is available to existing and new term deposit customers.
SBI Patron’s depositors would earn an additional 10 basis points higher interest rate than what is offered to senior citizens.

Q1: What is a Recurring Deposit?

A Recurring Deposit (RD) is a type of term deposit offered by banks and financial institutions, allowing individuals to save money systematically by making fixed monthly deposits for a predetermined period. At the end of the tenure, the depositor receives the principal amount along with interest.

Source: LM