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SBI Har Ghar Lakhpati scheme: Every single household has its dreams of getting its finances in order, but increasing expenditure might cause longevity
in saving and investing in the future to be neglected. It is largely believed that in order to have a sizeable corpus, one needs to earn a pretty decent salary or invest a one-time considerable sum of money. State Bank of India's Har Ghar Lakhpati scheme goes against this misconception. Let’s learn about and also explore how a monthly investment of Rs 610 could build a Rs 1 lakh fund.
What is SBI Har Ghar Lakhpati Scheme
The ‘Har Ghar Lakhpati’ scheme is a special recurring deposit (RD) offered by SBI. Under this plan, investors deposit a fixed amount every month for a chosen tenure and receive a lump sum at maturity. The scheme is designed to encourage regular saving habits and make long-term goals achievable without financial stress. The maturity period generally ranges from 3 years to 10 years, giving investors the flexibility to align savings with their income and future plans.
How Rs 610 per month investment could grow into Rs 1 Lakh
The major benefits of this scheme lie in its 10-year investment plan. When the investor puts in Rs 610 a month, in 10 years, the accumulated savings, with the added interest, will stand at around Rs 1 lakh. Hence, saving just Rs 20 per day will lead to the formation of a six-figure fund. Such features of this scheme make it very attractive to salaried employees, new investors, and people with less cash in hand.
Interest rates offered under Har Ghar Lakhpati scheme
The returns under the ‘Har Ghar Lakhpati’ RD depend on the tenure and the category of the investor. For general citizens, SBI offers interest rates of up to 6.55 per cent on tenures of 3 and 4 years. Senior citizens receive a higher return, with interest rates going up to 7.05 per cent for the same period. For longer durations ranging from 5 to 10 years, the interest rate for general citizens is around 6.30 per cent, while senior citizens can earn up to 6.80 per cent. These rates are subject to revision by the bank from time to time.
Reaching Rs 1 lakh faster with higher monthly savings
However, for an investor with a shorter term for their investment, the scheme also allows for the quicker creation of a Rs 1 lakh corpus with higher monthly payments. For example, for the creation of a Rs 1 lakh corpus in a 3-year term, an investor will have to make monthly contributions of approximately Rs 2,510. On the other hand, in a 5-year term, the same would be approximately Rs 1,420 every month.
Option to build more than Rs 1 lakh
The ‘Har Ghar Lakhpati’ scheme is not restricted to a Rs 1 lakh target. Investors can opt for higher targets such as Rs 2 lakh, Rs 3 lakh, or even Rs 4 lakh. Once the target amount is selected, the monthly instalment is calculated accordingly. This makes the scheme suitable for medium-term goals such as children’s education, marriage expenses, or creating an emergency fund.
Who can invest in this scheme?
Any Indian citizen can invest in SBI’s ‘Har Ghar Lakhpati’ RD scheme. Accounts can be opened individually or jointly. Parents can also open an RD account for their children. Children above the age of 10, who are capable of signing, can hold the account with parental guidance, while those below 10 years can invest through a parent or legal guardian.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
