Har Ghar Lakhpati Scheme: Under SBI’s ‘Har Ghar Lakhpati’ RD scheme, you can get a maturity amount of Rs 1 to 5 lakh by making small monthly savings. This scheme comes with attractive interest rates, security and tax benefits for both general and senior citizens.
Har Ghar Lakhpati Scheme: If you have a monthly income and want to make small savings regularly, then State Bank of India’s (SBI) ‘Har Ghar Lakhpati’ RD Scheme (Recurring Deposit) is a great option for you. This scheme is specially designed for those who want to make safe and goal-based savings by staying away from market-based risks.
What is the ‘Har Ghar Lakhpati’ scheme?
This scheme is open to all resident Indians. You can open it individually, jointly or in the name of a minor with a guardian. If the child is above 10 years of age and can sign, he can also open his account.
Interest rates vary as per age and tenure
Interest rates for general citizens
- For 3 and 4 years: 6.75% per annum
- For 5 to 10 years: 6.50% per annum
Interest rates for senior citizens
- For 3 and 4 years: 7.25% per annum
- For 5 to 10 years: 7.00% per annum
Interest is compounded on quarterly basis, which gives better returns on the total maturity amount.
What will happen in case of premature closure?
- For deposits up to ₹5 lakh, a penalty of 0.50% will be charged for premature closure.
- For amounts above ₹5 lakh, the penalty will be 1%.
- Interest will be paid at the rate which is either obtained after deducting the penalty rate or the scheme rate, whichever is lower.
- If the RD runs for less than 7 days, no interest will be paid.
How much return from how much savings?
Below are some estimates to give you an idea of how much money you can get with monthly savings.
For an estimated maturity of ₹2 lakh
| Duration | Ordinary citizens | Senior Citizens |
| 3 years | ₹5,002.44 | ₹4,963.42 |
| 5 years | ₹2,817.27 | ₹2,780.37 |
| 7 years | ₹1,878.87 | ₹1,843.96 |
For an estimated maturity of ₹5 lakh
| Duration | Ordinary citizens | Senior Citizens |
| 3 years | ₹12,506.10 | ₹12,408.55 |
| 5 years | ₹7,043.16 | ₹6,950.93 |
| 7 years | ₹4,697.17 | ₹4,609.91 |
Highlights of the scheme
- Gradually build a large fund by investing monthly
- Tax benefits available under 80C (if Form 15G/15H is submitted to avoid TDS)
- Completely free from market risk
- On maturity you receive a lump sum amount
- Account can be opened both online and offline.