Building a savings corpus of Rs 1 lakh does not necessarily require a large one-time investment. The State Bank of India's (SBI) Har Ghar Lakhpati Scheme, a recurring deposit (RD) offering, allows customers to accumulate this amount through fixed monthly deposits. The scheme aims to encourage regular savings among households by making it easier to build a sizeable corpus through smaller contributions.
The scheme offers tenures ranging from three to 10 years, allowing depositors to choose a period that suits their financial goals. The monthly instalment varies depending on the tenure and the depositor's category.
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For the general public, the monthly deposit starts at Rs 2,510 for a three-year tenure and drops to Rs 610 for a 10-year term. Senior citizens get a marginal concession, with the corresponding monthly instalments set at Rs 2,500 and Rs 600, respectively.
SBI has set different interest rates for various maturity periods. General depositors receive an annual return of 6.55% on three and four-year RDs, compared with 6.30% on deposits held for five to 10 years. The rates are 0.50% higher for senior citizens, who earn 7.05% and 6.80% across the respective tenure brackets.
Eligibility And Account Management
SBI allows resident individuals to enrol in the scheme through individual as well as joint accounts. The facility extends to minors too. Those aged over 10 years who can provide a legible signature are permitted to operate their accounts without assistance. For younger children, the account must be managed through a parent or legally appointed guardian.
Customers are also given some flexibility in meeting their monthly payment obligations. The scheme permits part-payments towards instalments and advance deposits, although paying ahead of schedule does not increase the maturity proceeds.
Safeguards, Penalties, And Withdrawals
Failure to pay instalments within the stipulated period can result in additional charges. SBI levies a monthly penalty of Rs 1.5 per Rs 100 for accounts with tenures of five years or less. For longer deposits, the charge increases to Rs 2 per Rs 100. If a depositor misses six consecutive payments, the bank can terminate the account before its maturity date and transfer the available funds to the linked savings account.
The scheme also allows early withdrawal, although customers must bear a penalty. The applicable deduction is 0.50% for deposits with a principal value of up to Rs 5 lakh and 1% for amounts above that threshold.
With SBI backing the product, the Har Ghar Lakhpati Scheme offers households a bank deposit-based route to planned savings. Its market-independent structure makes it an option for individuals seeking to accumulate money without exposure to stock market volatility.
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