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If you wish to build a substantial fund for the future by saving small amounts regularly, the State Bank of India (SBI) 'Har Ghar Lakhpati' scheme could be useful for you. It is specifically designed for those who want to save regularly without taking risks. Essentially, this scheme is a variant of SBI's Recurring Deposit (RD) plan, tailored to facilitate goal-oriented savings.

The objective of this scheme is to help individuals accumulate a sum of ₹1 lakh or more by maturity through small monthly deposits. If you are looking to build a significant fund within a set timeframe through a safe investment, this scheme is an excellent option.

What is the ‘Har Ghar Lakhpati’ scheme?
This is a special RD scheme where you deposit a fixed amount every month. Upon the completion of the investment tenure, you receive the accumulated funds as a lump sum—either ₹1 lakh or a larger corpus like ₹2 lakh or ₹3 lakh, depending on the amount you chose.

Since this is an SBI scheme, your deposits are secure, and you earn returns based on a pre-determined interest rate.

How much needs to be deposited monthly?
You can choose a tenure ranging from 3 to 10 years based on your requirements. Your monthly installment is determined by the chosen tenure; opting for a longer tenure reduces the monthly deposit amount, whereas a shorter tenure results in a slightly higher installment. Please note that the monthly installment amount may vary slightly if interest rates change.

Interest rates and benefits for senior citizens
This scheme offers the same interest rates as SBI's standard RD accounts, with interest calculated on a quarterly compounding basis.
General customers earn annual interest ranging from 6.50% to 6.75%, depending on the tenure.
Senior citizens receive an additional 0.50% interest compared to general customers, enabling them to reach their savings goals with a smaller monthly investment.

How to open an account?
Opening an account under this scheme is quite simple. You can start this process either online or by visiting a bank branch.

Online Method
If you have an SBI account, log in to the YONO app or net banking. You can then complete the application by selecting the options: Deposits > e-RD > Har Ghar Lakhpati.

Offline Method
You can also open this account by visiting your nearest SBI branch and filling out an application form.

What documents are required?
To open the account, you will need your Aadhaar card, PAN card, a passport-sized photograph, and an existing SBI savings account.

Loan facility available if needed
If you require funds during the investment period, the bank offers a loan or overdraft (OD) facility of up to 90% of the deposited amount.

What happens if an installment is missed?
If an installment is not deposited on time in a given month, the bank may levy a nominal penalty in accordance with its rules. If multiple consecutive installments are missed, the bank may close the account.

Tax-related rules
TDS (Tax Deducted at Source) will apply if the total interest earned from this scheme in a financial year exceeds ₹40,000. For senior citizens, this limit is set at ₹50,000.

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