Indian Bank offers two types of recurring deposit schemes - Variable Recurring Deposit and Insured Recurring Deposit. You can get interest rate on RDs ranging from 6.75% to 6.90% on the deposited amount. Senior citizens can get an 0.50% additional interest rate on the deposit.
Variable Recurring Deposit
In case of Variable Recurring Deposit Scheme, you can choose the monthly instalment amount according to your convenience, as long as you stick to the minimum deposit amount specified by the bank.
|Minimum Deposit Amount||Min: Rs.25 per month (for any higher amount, deposit in multiples of Rs.25 up to Rs.1 lakh)
Max: 10 lakh per month
|Tenure||Min: 1 year
Max: 10 years
|Interest Rate||6.75% - 6.90%|
|Additional Rate for Senior Citizens||Not Applicable|
|TDS on RD||Applicable|
|Late Penalty||Not charged|
Things to Know
- The interest paid will be calculated on the minimum balance that is maintained between the 10th and the last day of every month.
- The interest is quarterly compounded.
Insured Recurring Deposit
Insured Recurring Deposit scheme offers low cost life insurance cover.
|Minimum Deposit Amount||Min: Rs.100
Max: 10 lakh
|Tenure||Min: 3 years
Max: 5 years
|Additional Rate for Senior Citizens||Not applicable|
|Eligibility||Individuals age between 18 years to 55 years|
Things to Know
- The maximum insurance cover available is Rs. 10 lakhs.
- RD account holders need not undergo a medical check-up to avail this scheme. A Declaration of Good Health (DGH) is enough.
- You need to pay the premium upfront. For a sum of Rs.1,000, the premium is Rs.3.84 per annum on a diminishing basis.
- The premium is recovered from the interest earned, at the time of closure.
How to Open an RD Account in Indian Bank
You can open a recurring deposit account with Indian Bank in two ways:
- By visiting the branch
- Through net banking
If you are an existing Indian Bank account holder, use your net banking username and password to log in to your online account and open an e-RD right away. If you are not an Indian Bank account holder, you will have to open an account first. After your account is active, you can log in to net banking and open an e-RD.
You can invest your money in RD by Indian Bank and enjoy competitive rates. However, to enjoy better returns, look for other investment vehicles like mutual funds, fixed deposits, stocks, and bonds, among others.
Know the Current Recurring Deposit Rates
- Indian Bank Recurring Deposit Rates Comparison with Other Banks and Institutions
- Indian Bank Recurring Deposit Interest Rates