SBI Har Ghar Lakhpati Scheme

SBI Har Ghar Lakhpati Scheme

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To provide a customised Recurring Deposit product to customers,State Bank of India has decided to introduce “Har Ghar Lakhpati” (HGL) Scheme. The scheme will enable our customers to accumulate ₹1 Lakh or above in their accounts by depositing small savings every month and become ‘LAKHPATI’ on maturity of the deposit.

Key Features of the Har Ghar Lakhpati Scheme

The Har Ghar Lakhpati scheme is a pre-calculated RD designed to simplify wealth-building for customers. Here are its core features:

  • Objective: Enables customers to save ₹1 lakh or more (e.g., ₹2 lakh, ₹3 lakh, or ₹5 lakh) by depositing fixed monthly amounts, with guaranteed returns upon maturity.

  • Tenure: Flexible investment periods ranging from a minimum of 12 months (1 year) to a maximum of 120 months (10 years).

  • Eligibility: Open to all resident individuals, including single or joint account holders. Minors above 10 years who can sign legibly can open accounts independently, while younger children require a parent or legal guardian as a joint account holder.

  • Minimum Deposit: The minimum monthly deposit is ₹100, making it accessible to a wide range of income groups.

  • Interest Rates:

    • For general citizens (below 60 years): 6.75% per annum for 3- and 4-year tenures; 6.50% for 5- to 10-year tenures.

    • For senior citizens (60 years and above): 7.25% for 3- and 4-year tenures; 7.00% for 5- to 10-year tenures.

    • Interest is compounded quarterly, enhancing the overall returns.

  • Premature Withdrawal: Allowed, but with penalties:

    • 0.50% penalty for deposits up to ₹5 lakh; 1% for deposits above ₹5 lakh.

    • Interest rate is reduced by 0.50% to 1% below the applicable rate for the period the deposit remained with the bank, or the contracted rate, whichever is lower.

    • No interest is paid if the deposit is withdrawn within 7 days.

  • Penalties for Delayed Payments: Late monthly deposits incur penalties of ₹1.50 per ₹100 per month for tenures up to 5 years, and ₹2 per ₹100 per month for longer tenures. If six consecutive installments are missed, the account is prematurely closed, and the accumulated amount is transferred to the linked SBI savings account.

How Much to Invest Monthly?

The Har Ghar Lakhpati scheme is pre-calculated to help depositors achieve specific savings goals. Below are illustrative monthly investment amounts to reach target corpus amounts, based on prevailing interest rates:

  • To accumulate ₹1 lakh (general citizens):

    • 3 years (6.75%): ₹2,500 per month.

    • 4 years (6.75%): ₹1,810 per month.

    • 5 years (6.50%): ₹1,407 per month.

  • To accumulate ₹3 lakh:

    • 3 years (6.75%): ₹7,506 per month (general); ₹7,446 per month (senior citizens).

    • 5 years (6.50%): ₹4,227 per month (general); ₹4,173 per month (senior citizens).

    • 10 years (6.50%): ₹1,779 per month (general); ₹1,728 per month (senior citizens).

  • To accumulate ₹5 lakh: Monthly deposits would scale proportionally based on tenure and interest rates, with longer tenures requiring smaller monthly contributions.

These amounts are subject to change with fluctuations in interest rates, and SBI provides customized advice based on the desired maturity amount.

Benefits of the Har Ghar Lakhpati Scheme

  1. Disciplined Savings: Encourages regular savings through fixed monthly deposits, ideal for individuals with steady incomes, first-time investors, or students.

  2. Guaranteed Returns: As an RD, the scheme offers fixed returns, making it a safe, risk-free investment compared to market-linked options like mutual funds.

  3. Capital Safety: Backed by SBI and supported by the Government of India, the scheme ensures capital protection, appealing to risk-averse investors.

  4. Flexible Tenures: The 3- to 10-year tenure range allows customization based on short- or long-term financial goals.

  5. Inclusivity: Available to minors, promoting early financial planning and savings habits among young individuals.

  6. Mass Adoption: Since its launch, SBI has opened 0.63 million accounts under this scheme in just 45 days, reflecting its widespread appeal.

Drawbacks and Considerations

While the Har Ghar Lakhpati scheme offers security and simplicity, there are some limitations to consider:

  • Lower Returns Compared to Equity: The interest rates (6.50%–7.25%) are lower than potential returns from equity investments or mutual funds, which may not suit investors seeking higher long-term growth.

  • Penalties for Flexibility: Premature withdrawals and delayed payments attract penalties, reducing flexibility compared to savings accounts or liquid funds.

  • Tax Implications: Interest earned is taxable as per the investor’s income tax slab. If annual interest exceeds ₹40,000 (₹50,000 for senior citizens), a 10% TDS is applicable.

  • Competitive Rates: Other banks like HDFC (7%–7.5%), ICICI (6.9%–7.5%), and Canara Bank (5.50%–7.30%) may offer slightly higher RD rates for certain tenures, making it worth comparing options.

  • Minimum Lock-in Period: The 3-year minimum tenure may not suit those with very short-term financial goals.

Who Should Invest?

The Har Ghar Lakhpati scheme is ideal for:

  • Risk-Averse Investors: Those prioritizing capital safety and guaranteed returns over high-risk, high-reward investments.

  • First-Time Savers: Individuals, including students or young professionals, looking to build a savings habit with small, manageable deposits.

  • Goal-Oriented Savers: People planning for specific financial milestones, such as funding education, a wedding, or a major purchase in 3–10 years.

  • Senior Citizens: The higher interest rates for those above 60 make it attractive for retirees seeking secure savings options.

  • Parents of Minors: The scheme’s availability to minors encourages early financial literacy and planning.

However, investors seeking high returns or needing immediate liquidity may find alternatives like equity mutual funds or savings accounts more suitable.

Comparison with Other Banks

SBI’s RD rates are competitive but slightly lower than some private banks:

  • HDFC Bank: 7% (general) and 7.5% (senior citizens) for 3- to 10-year tenures; no penalties for premature withdrawals.

  • ICICI Bank: 7%–7.25% (general) and 7.4%–7.5% (senior citizens) for various tenures.

  • Canara Bank: 5.50%–7.30%, with 7.30% for a 444-day tenure.

SBI’s edge lies in its widespread trust, government backing, and the scheme’s focus on goal-oriented savings, making it a preferred choice for conservative investors.

How to Open an Account

To enroll in the Har Ghar Lakhpati scheme:

  1. Visit an SBI branch or use SBI’s online banking platform (YONO SBI or Internet Banking).

  2. Open a recurring deposit account under the Har Ghar Lakhpati scheme.

  3. Specify the desired maturity amount (₹1 lakh or multiples) and tenure.

  4. Link the RD account to an SBI savings account for automatic transfers of monthly installments.

  5. Ensure timely deposits to avoid penalties or account closure.

For more information visit : https://sbi.co.in/hi/web/personal-banking/investments-deposits/deposits/har-ghar-lakhpati

Also visit : https://postofficefd.com/bank-of-india-fd-interest-rates-2025/