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

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

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