Business: SBI’s Lakhpati Scheme: Your Path to ₹1 Lakh with Monthly Savings
Introduction to the Scheme
The State Bank of India (SBI) launched the Har Ghar Lakhpati Recurring Deposit (RD) scheme in early 2025, designed to help individuals achieve a ₹1 lakh corpus through disciplined monthly savings. This goal-oriented plan targets low- to middle-income households, offering guaranteed returns with minimal risk.
Scheme Mechanics
Unlike traditional RDs, the Har Ghar Lakhpati scheme allows depositors to select a target maturity amount (e.g., ₹1 lakh, ₹5 lakh, or ₹10 lakh) and tenure, with monthly contributions calculated accordingly. The tenure ranges from 3 to 10 years, providing flexibility to align with financial goals.
Interest Rates and Eligibility
General citizens receive 6.55% per annum for 3- and 4-year tenures, dropping to 6.30% for longer terms, while senior citizens benefit from 7.05% and 6.80%, respectively. The scheme is open to all Indian residents, including minors above 10 years (with guardians for younger children), for single or joint accounts.
Monthly Investment Requirements
To achieve a ₹1 lakh maturity:
- General Citizens: ₹2,510/month for 3 years, ₹1,820/month for 4 years, or ₹1,420/month for 5 years at respective interest rates.
- Senior Citizens: ₹2,500/month for 3 years or ₹1,810/month for 4 years, leveraging higher interest rates.
Penalty and Closure Policies
Missing six consecutive installments triggers automatic account closure, with funds transferred to the linked SBI savings account. Premature withdrawals incur a 0.50% penalty for deposits below ₹5 lakh and 1% for higher amounts, with no interest paid if withdrawn within 7 days.
Tax Implications
Interest earned is taxable under the Income Tax Act, 1961, with a 10% TDS applied if annual interest exceeds ₹10,000. Depositors can avoid TDS by submitting Form 15G/15H if their income falls below the taxable threshold.
Application Process
Accounts can be opened at SBI branches or via online platforms like the SBI YONO app or net banking. Required documents include identity and address proof, ensuring accessibility for diverse investors.
Strategic Appeal
The scheme promotes financial discipline by offering customizable tenures and predictable returns, contrasting with riskier investment options. Its alignment with RBI’s recent repo rate adjustments reflects SBI’s adaptability to economic shifts.