IDFC Bank has established itself as one of the leading private banks in India, in a very short span of time post their new management reforms. It had a lot of impact in the personal financial product range including recurring deposit scheme. Not only does it have a comparatively high interest rate to the account holder but the interest is calculated quarterly. Also they have other benefits that the customer can use such as for the first month of deposit that is unpaid, no penalties are charged.
Benefits of IDFC Bank Recurring Deposit
- The current RD interest rate is high, when compared to other banks, at 8 per cent.
- A recurring deposit account minimum deposit amount at IDFC Bank is only Rs.2,000.
- 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.
- An IDFC RD account can be opened for a tenure as low as 6 months.
- No interest is charged 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.
- Senior citizens get an additional interest rate of 0.5 per cent per year.
- The tenures are flexible starting from 6 months to 120 months, at multiples of 3 months.
- Facility for nomination of the IDFC RD account is available.
IDFC Bank Recurring Deposit Interest Rates
The interest rate is calculated for every quarter at the given rate. The interest rate applicable is the current rate of interest stated by the bank.
Eligibility for IDFC Bank Recurring Deposit Account
The major eligibility conditions for opening an RD account with IDFC Bank includes:
- You need to have a Savings account with the bank. Bank requires some criterias such as age and citizenship for opening a savings account.
- Minimum Monthly Deposit should be Rs. 2000.
- Maximum monthly deposit cannot be more than Rs.75,000.
Documentation Required for IDFC Bank Recurring Deposit
One needs to fulfill the documentation for the savings account, to start with, which will include financial documents, ID and address proof.
Taxation on IDFC Bank Recurring Deposit Account
There is Tax Deducted at Source (TDS) that is deductible under the provisions of the Section 194A of the Income Tax Act, 1961, for this product.