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The State Bank of India’s Har Ghar Lakhpati RD Scheme caters to adults as well as minors to start their investment journey.
SBI Har Ghar Lakhpati RD Scheme allows individuals to become ‘Lakhpatis’ upon the maturity of their deposit
The country’s largest public sector bank, the State Bank of India, has launched a significant initiative—Har Ghar Lakhpati. A pre-calculated recurring deposit (RD) scheme is designed to help individuals and families collect Rs 1,00,000 or more over three to ten years in a bid to meet their financial goals in the future. As per the SBI’s official website, an RD account is a deposit account that offers the option to deposit a fixed sum of money every month, which earns interest and is compounded quarterly. Coming back to Har Ghar Lakhpati, the scheme caters not only to adults but also to minors.
For people under the age of 60, the scheme offers an interest rate of 6.75 per cent for three to four years whereas depositors above 60 are provided 7.25 per cent for the same tenure. However, SBI’s interest rates remain unchanged for other RD schemes across these tenures (6.50 per cent for general citizens and 7 per cent for senior citizens).
Apart from the promising interest rates, customers will also have the flexibility to choose a tenure from a minimum of 12 months (one year) to a maximum of 120 months (10 years), based on their comfort. This way, whether you are planning for a grand wedding, your dream home, or a short-term expense, the scheme will efficiently fit the plans.
Should You Invest In SBI’s Har Ghar Lakhpati?
Before taking the call to make the investment, let’s dive into the additional pros and cons. The Har Ghar Lakhpati scheme has a minimum lock-in period of three years. Any withdrawals during this period will draw penalties of 0.50 per cent for amounts up to Rs 5 lakh and 1 per cent for above. The interest rate will also reduce by 0.5 to 1 per cent.
While no interest will be paid for SBI’s RDs held for less than seven days, HDFC attracts no penalties for premature withdrawal. Those planning to meet long-term goals like children’s education or retirement might not benefit much, as the returns are lower than equity-based investments. “Like FDs, here too the returns are lower compared to equity-linked investments, which could impact long-term growth,” said Nehal Mota, Co-Founder & CEO at Finnovate, as quoted by Moneycontrol.
On the positive side, the Har Ghar Lakhpati scheme not only ensures capital protection but also offers guaranteed returns, thus making it a secure investment option. “It also promotes disciplined savings with flexible tenures, allowing investors to choose a period that suits their financial goals,” Mota adds.
When coming to making a choice, the scheme is ideal for all conservative investors, including senior citizens who look forward to assured returns and protection. Also, it is a good option for first-time investors or students who want to start with smaller amounts.
