No Emergency Fund? You'll Borrow at 18% — Fix It

SBI's Lakhpati RD lets you build ₹1 lakh in 3–10 years with small monthly deposits. For borrowers, it's not just savings — it's your shield against emergency loans that charge 18% or more.

Here's what happened: SBI launched the Lakhpati RD — a recurring deposit where the monthly instalment is calculated backwards from a ₹1 lakh maturity goal across tenures of 3 to 10 years.. Deposit amounts vary by tenure and customer category; senior citizens earn a marginally higher interest rate, reducing the monthly amount needed to hit ₹1 lakh.. The scheme is offered by a scheduled public-sector bank and deposits are covered under DICGC insurance up to ₹5 lakh — unlike informal chit funds or unregulated savings apps..

What you should do: Check your active loans first — if you carry any personal or credit-card debt above 10% interest, prepay that before opening an RD, since you'd earn ~5% while paying 15%.. Visit SBI's nearest branch or log into YONO to calculate the exact monthly instalment for your chosen tenure — 3-year savers pay more per month but save more in total interest versus borrowing.. Avoid any app or agent promising 'lakhpati' returns faster than a bank RD can deliver — verify the institution is RBI-regulated and DICGC-insured before depositing a single rupee..

If you have a home loan, ask your bank about an overdraft-linked savings account instead — it reduces your loan principal daily and effectively earns you the home-loan interest rate (8–9%) on every rupee parked, beating any RD post-tax.