SBI Har Ghar Lakhpati: The Har Ghar Lakhpati Scheme, offered by the State Bank of India, is an excellent recurring deposit initiative designed to assist individuals in building a substantial corpus. While the scheme’s name suggests the potential to become a “Lakhpati,” it also provides a pathway to achieving millionaire status. Participants are encouraged to invest a significant amount each month in accordance with the scheme’s guidelines. Additionally, individuals have the option to invest in the names of multiple family members, allowing for a larger cumulative deposit after a specified period. There is no cap on the maximum deposit amount allowed under this scheme.
Penalties
To promote disciplined investment in fixed deposits, the Har Ghar Lakhpati Yojana includes provisions for penalties on late payments. Early withdrawals are also subject to penalties; however, these penalties are reasonable and serve to uphold financial discipline within this deposit scheme, which offers attractive interest rates, guaranteed returns, and capital protection.
Eligibility and interest rates
The fixed deposit terms range from three to ten years, with interest rates varying between 6.75% and 7.25%. Individuals aged ten and above are eligible to open an account, with those between the ages of ten and sixty receiving an interest rate of 6.75%, while those aged sixty and above benefit from a rate of 7.25%.
TDS
Under the Har Ghar Lakhpati Yojana, if the annual interest earned exceeds Rs 40,000, a TDS of 10% will be deducted, applicable under the second fixed deposit scheme. For senior citizens, this threshold is set at Rs 50,000. It is important to note that if there are no deposits made for six consecutive months, the recurring deposit account will be closed, and the remaining balance will be transferred to the associated savings account.