IDFC Bank’s key feature in their recurring deposit is their high interest rate which is between 7.25 to 8%. The interest is calculated on a quarterly basis and paid out when the account matures. The terms that can be chosen range from a mere 6 months up to 10 years. The bank does not charge any penalty if an individual withdraws 30 days prior to the end of the term. For any time between 30 days to 6 months before will be the 30 to 45 days card rate of interest. One of the other major feature about this deposit account is if an account holder is unable to pay the deposit for a month, no added penalty will be chargeable. However, if the deposit is missed for a second month, the RD account will cease to exist and the deposited amount will be transferred to the savings account without any interest.
|Tenure||Recurring Deposit Interest Rates (Per Annum)|
|6 months||6.75 percent|
|9 months||7. 00 percent|
|1 year||7.25 per cent|
|1 year 3 months||7.25 per cent|
|1 year 6 months||7.25 per cent|
|1 year 9 months||7. 25 percent|
|2 years||7. 25 percent|
|2 years 3 months||7. 25 percent|
|3 years||7. 25 percent|
|3 years 3 months||7. 20 percent|
|4 years||7. 20 percent|
|5 years||7. 20 percent|
|9 years 6 months||7. 20 percent|
|10 years||7. 00 percent|
Taxation on Interest Earned Through IDFC Bank Recurring Deposit
TDS is deductible under Section 194A of the Income Tax Act, 1961, from the interest earned in that financial year.
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