Unpacking SBI's Har Ghar Lakhpati RD scheme: Is it better to invest or pass?

A recurring deposit program called "Har Ghar Lakhpati" (lakhpati in every home) has been launched by the State Bank of India (SBI). Through modest monthly payments over three to 10 years, this investment initiative aims to assist people in building up a corpus of at least Rs 1 lakh. Anyone can open an account, including youngsters who are at least 10 years old and able to sign clearly. The plan offers interest rates of 6.75 percent for three- and four-year tenures and 6.50 percent for five- to ten-year tenures to individuals under 60. It provides 7.25 percent for three and four years and 7 percent for five to ten years for people over 60. For these tenures, the bank's interest rates for other RD schemes don't alter. Vikas Jain, co-founder of the fintech app Multipl, notes that while SBI's interest rates for RDs are comparable to those of other public sector banks, they are 0.5 percent lower than those of the bigger private sector banks, such as HDFC and ICICI. For customers under 60, HDFC Bank offers 7% interest, while for those aged three to ten, it offers 7.5 percent. For those under 60, ICICI Bank gives 7 percent for three to five years and 6.9 percent for five to ten years. They also offer 7.5 percent for three to five years and 7.4 percent for five to ten years for older persons.