If you want to make money by investing in deposit schemes of banks, then this news is for you. Actually, State Bank of India (SBI) has started a new recurring deposit scheme. The scheme is called Har Ghar Lakhpati, which offers customers the opportunity to become a ‘millionaire’ upon maturity by saving a small amount each month.
What are the specifics?
As per the SBI website, you can make monthly deposits of a fixed amount into an account under the Recurring Deposit Scheme. When you open the account, you’ll need to choose a specific monthly deposit amount and the duration. Interest is accrued on the fixed monthly deposits, and this interest is credited quarterly.
Who is eligible to open an account?
Any Indian citizen can open this account. Minors over the age of 10 who can sign clearly are allowed to open a single account, or they can open a joint account with a parent or legal guardian. The investment period for this scheme ranges from a minimum of three years to a maximum of ten years.
What happens if you miss a payment?
The Har Ghar Lakhpati Scheme allows deposits for a period between 3 to 10 years. You can make part payments under the scheme, but there will be a penalty deducted from the maturity amount for any late payments. For a recurring deposit of five years or less, if you miss a payment of Rs 100, a penalty of Rs 1.50 will apply for each month of delay. For deposits exceeding five years, the penalty increases to Rs 2 per month for the same amount.
What is the interest rate?
Participants in this scheme can expect an interest rate of 6.75% for a three-year investment. Senior citizens will receive a higher rate of 7.25%. For other durations, the interest rate is set at 6.50% for the general public and 7% for senior citizens. Customers can benefit from a 6.75% interest rate for tenures of three and four years, while a 6.50% rate applies for five-year deposits and longer.
To determine the monthly investment required to achieve a lakhpati status in three years, an investment of Rs 2,500 per month is necessary. For senior citizens, the monthly investment required is slightly lower at Rs 2,480 to reach Rs 1 lakh upon maturity. Meanwhike for a four-year plan, a monthly investment of Rs 1,810 will enable you to become a lakhpati. Senior citizens, on the other hand, need to invest Rs 1,791 each month to accumulate Rs 1 lakh by maturity.
If you are looking to become a lakhpati in five years, a monthly contribution of Rs 1,407 is required. Senior citizens will need to invest Rs 1,389 monthly to achieve the same Rs 1 lakh at maturity.
