IDFC First Bank Recurring Deposit (RD) Interest Rates

The rate of interest of IDFC First Bank RD scheme are given in the table below: 

Tenure	Interest Rate
General Citizen	Senior Citizen
6 months	4.50%	5.00%
9 months	5.50%	6.00%
12 months	6.25%	6.75%
24 months	6.75%	7.25%
36 months	6.25%	6.75%

Note: The rates are effective from 3 May 2025. 

Eligibility for IDFC  First Bank Recurring Deposit Account

The major eligibility conditions for opening an RD account with IDFC First Bank includes:

1. You need to have a Savings account with the bank. The bank requires some criteria such as age and citizenship for opening a savings account.
2. Minimum Monthly Deposit should be Rs. 100.
3. Maximum monthly deposit cannot be more than Rs.75,000.

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Documentation Required for IDFC First 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.

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Benefits of IDFC First Bank Recurring Deposit Account

1. The current RD interest rate is high, when compared to other banks, at 6.75% and 7.25% for general and senior citizens, respectively.
2. A recurring deposit account minimum deposit amount at IDFC First Bank is only Rs.2,000.
3. 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.
4. An IDFC RD account can be opened for a tenure as low as 6 months.
5. 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.
6. Senior citizens get an additional interest rate of 0.50 %  per year.
7. The tenures are flexible starting from 6 months to 120 months, at multiples of 3 months.
8. Facility for nomination of the IDFC RD account is available.

Taxation on IDFC First 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.

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FAQs on IDFC Bank Recurring Deposit Interest Rates

• How is the interest rate determined for IDFC First Bank's Recurring Deposit?

  The interest rate for IDFC First Bank's Recurring Deposit is calculated quarterly, depending on the prevailing interest rate specified by the bank. This means that the interest earned on the deposit is reviewed and adjusted every quarter, providing a dynamic aspect to the returns. 

• Is there a penalty for missing a monthly deposit in IDFC FIRST Bank's recurring deposit?

  No, IDFC FIRST Bank adopts a lenient approach and does not impose penalties if a depositor misses a monthly deposit in their recurring deposit. This flexibility is customer-friendly, allowing individuals to manage their savings without the fear of financial penalties. However, it's crucial to note that premature withdrawals within the first 30 days do not accrue any interest. 

• What documentation is necessary for opening an IDFC First Bank Recurring Deposit?

  To open an IDFC First Bank Recurring Deposit, individuals need to fulfill the documentation requirements for a savings account. This typically involves providing financial documents, valid identification, and proof of address. This ensures that the bank has the necessary information to establish and maintain the recurring deposit account. 

• How does taxation function for IDFC First Bank's Recurring Deposit Account?

  Tax Deducted at Source (TDS) is applicable under Section 194A of the Income Tax Act, 1961, for IDFC First Bank's Recurring Deposit. This means that a certain percentage of the interest earned is deducted at the source before the interest is credited to the account. Account holders should be aware of this tax implication and plan their finances accordingly. 

• What is the minimum monthly commitment for a recurring deposit with IDFC FIRST Bank?

  IDFC FIRST Bank offers a highly accessible option for starting a recurring deposit with a minimum monthly commitment of just Rs.100. This low entry point allows individuals to initiate a savings plan with a nominal contribution, making it a flexible and affordable option for a wide range of customers. 

• What occurs if a depositor withdraws before the end of the term?

  If an individual decides to withdraw 30 days before the term concludes, no interest is charged. However, for withdrawals made between 30 days to 6 months before the term ends, the applicable interest rate will be based on the 30 to 45 days card rate of interest. This provides a transparent framework for understanding the consequences of early withdrawals at different points in the term.