Overview of IDBI
IDBI Bank is a leading government-owned financial services company in India which was initially known as the Industrial Development Bank of India. It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry and has its headquarters in Mumbai, India.
Currently it is the 10th largest development bank in the world in terms of its widespread presence which can be attributed to its 2912 ATMs, 1659 branches, including an overseas branch in Dubai and 1013 centers including two overseas centres in Singapore and Beijing.
Recurring Deposit from IDBI
IDBI Recurring deposit assists you to gain high yields conveniently and efficiently. For regular income earning customers, any fixed amount from Rs.100 and less than 1 crore can be saved with ease every month. The amount you choose to deposit will be deducted every month from your savings account. Income tax is not deducted at source(TDS) on these deposits and also no charges are levied for executing the standing instructions. The facility to get the monthly deposit amount deducted from the savings account, is offered to the customer.
Features of IDBI Recurring Deposit
- Savings to meet future goals and requirements.
- Regular savings for a contracted period of time.
- The period of deposit can be from a minimum of 1 year up to a maximum of 10 years.
- Minimum amount for deposit is Rs.100.
Recurring Deposit schemes offered by IDBI
Suvidha Suraksha Recurring Deposit
Suvidha Suraksha Recurring Deposit offered by IDBI is a Recurring Deposit scheme with a unique feature - it comes with an in-built insurance cover at lower premium. The deposit allows an insurance cover which is equal to the Recurring Deposit installments.
- Insurance Cover is for a term which is equal to the Suvidha Suraksha RD tenure i.e., Minimum 1 year and Maximum 5 years. In case the tenure is not in complete years, the insurance cover will be available up to the next year following the maturity date of the scheme.
- Upon maturity, the Accumulated Savings is placed under the Suvidha Suraksha RD account.
- Upon death within the cover term, the depositor’s family gets the principal sum insured as well as the accumulated savings under the Suvidha Suraksha RD account.
- Enjoy tax benefits under 80C of IT Act for the premiums paid and 10(10D) of IT Act for the amount received as death benefits.
Features of Suvidha Suraksha Recurring Deposit
- Resident account holders who fall between the age group of 18-60 years and do not exceed 65 years of age at the time of maturity, can apply.
- Joint account is permitted but the insurance will be available to the primary account holder only.
- Rate of interest offered on insurance is at par with the interest rate on Suvidha Suraksha Recurring Deposit.
- The minimum amount of deposit is Rs.1,000/- per month and thereafter in multiples of 1,000/-.
- The deposit amount should not exceed Rs.1 Crore per month.
- The deposit period is for a minimum of 12 months and a maximum of 5 years.
- Sum insured is the sum of all the Suvidha Suraksha RD installments up till the maturity period.
- Insurance premium payment frequency is annual.
Interest rates offered on IDBI’s Recurring Deposit
Interest will not be paid if Recurring Deposit is discontinued under three months. If RD is discontinued in less than one year but kept for at least 3 months with the Bank, then the interest applicable for a Savings Bank account will be paid. In case of premature closure of Recurring Deposit by a senior citizen, the additional 50 base points applicable to Senior Citizen will be given to them if the RD has been with the bank for 12 months from the date of the 1st installment. The interest rates offered by the Bank ranges between 8.50% to 9.10%. Senior citizens get 0.50% hike in interest rate applicable, over and above that of regular customers.
- How to open a Recurring Deposit account in IDBI? Applying for a Recurring Deposit is absolutely simple. Just call Phone Banking numbers or visit your Nearest Branch.
- What is the Minimum & Maximum amount to open Recurring Deposit in IDBI? Regular RD - saving any fixed amount from 100 to less than 1 crore every month. For Suvidha Suraksha Scheme, the minimum amount to be deposit Rs. 1,000/- p.m. & in multiples of 1,000/- and maximum amount should not be less than Rs. 1 Crore per month.
- What are the Minimum or Maximum period for RD in IDBI? For regular RD the period of deposit can be from 1 year to 10 years. For Suvidha Suraksha Scheme, Minimum period is 12 months and in multiple of completed quarter and Maximum period is 5 Years.
- Is TDS (Tax Deductible at Source) applicable on Recurring Deposits? No. There is no tax deduction.
- Do Senior citizens get any extra benefit on Recurring Deposits? Yes. They can enjoy a 0.50% hike in interest over and above the interest rate received by regular customers.
- Can I make premature withdrawal of RD? Yes. Premature withdrawals are permitted by the Bank.
- Is nomination for RD available? Nomination facility is available.