SBI's RD Scheme: Build ₹1 Lakh on ₹500/Month?

SBI's Har Ghar Lakhpati is a Recurring Deposit scheme designed to help ordinary savers build ₹1 lakh or more through small monthly contributions. Here's how it works, who can open one, and whether it's worth your money.

Here's what happened: SBI's Har Ghar Lakhpati is a goal-based Recurring Deposit where the monthly instalment is reverse-calculated from your target corpus of ₹1 lakh or more.. The scheme follows SBI's standard RD interest rates (currently 6.5%–7.0% p.a. for general citizens), with senior citizens earning an extra 0.50% on the same deposit.. Resident individuals and minors (through guardians) are eligible to open the account at any SBI branch or via YONO, making it widely accessible..

What you should do: Use SBI's RD calculator on YONO or the SBI website to find the exact monthly amount you need to deposit for your ₹1 lakh goal across different tenures.. Check whether a family member above 60 can open the account — the senior citizen rate premium of 0.50% compounds over the tenure and meaningfully boosts the final corpus.. Compare the post-tax returns with alternatives like a liquid mutual fund or Post Office RD before committing, especially if you fall in the 20% or 30% income tax bracket..

RD interest is taxable every year under 'Income from Other Sources' — not just at maturity. Factor your tax slab into the effective return before comparing with tax-saving instruments.