Overview of Indian Bank

Indian Bank was established, as a part of the Swadeshi Movement, on 15^th August 1907. It houses overseas branches in Singapore and Colombo. Indian Bank also has a Foreign Currency Banking Unit in Colombo and Jaffna. Apart from being a leader in specialised and rural development banking, it has a widespread network of ATMs and 100% CBS (Core Banking Solutions) branches across the country.

Recurring Deposit Schemes from Indian Bank

Recurring deposit allows you to invest a fixed amount every month for a fixed period of time. Not only do you get to enjoy high rates of interest, but are also relieved of the burden of investing a lump sum, unlike the other kinds of deposits. These features make RD a very wise and practical mode of saving.

Indian Bank offers a wide array of services, especially designed to suit the varied needs of every customer. Recurring Deposit is one of them. The bank offers highly flexible and easily achievable RD options to its customers, at competitive interest rates. A Recurring Deposit account with Indian Bank also provides a host of additional benefits which help you in attaining your financial goals.

Types of Recurring Deposits by Indian Bank

• Regular Recurring Deposit
• Variable Recurring Deposit
• Insured Recurring Deposit

Features and Benefits of Indian Bank Recurring Deposit Schemes

Regular Recurring Deposit

A fixed sum is deposited every month for a fixed period of time. On maturity, the depositor gets back the principal amount in lump sum along with the interest earned.

• The deposit tenure ranges from a minimum of 6 months to a maximum of 10 years, in multiples of 3 months.
• The minimum monthly instalment amount is Rs. 5.
• Interest is compounded quarterly.
• The account holder can avail the facility of choosing a nominee.
• The interest earned on your RD is free of TDS deductions.
• The bank offers loan facility against Regular RD. Please contact the nearest branch or visit the bank’s website for further details.
• Premature closing of your RD is allowed, but the amount earned is subject to the rules of the bank.

Variable Recurring Deposit

This Recurring Deposit Scheme gives you the option of choosing the monthly instalment amount according to your convenience, as long as you stick to the minimum deposit amount specified by the bank.

• The minimum initial deposit amount is Rs. 25 or in multiples Rs. 25, the maximum being Rs. 1 lakh.
• The subsequent monthly instalments can vary, as long as the maximum deposit amount is Rs. 10 lakhs per month.
• The deposit tenure ranges from a minimum of 12 months to a maximum of 120 months.
• In case of delayed payment of monthly instalments, penalty is not charged.
• The interest paid will be calculated on the minimum balance that is maintained between the 10^th and the last day of every month.
• The amount of interest earned is free of TDS deductions.
• You can close your RD account prematurely. The amount earned in this case is subject to the rules of the bank.
• The bank provides nomination facility on your RD account.
• Loan facility is available against your Variable Recurring Deposit account. Please contact the nearest branch or visit the bank’s website for further details.

Insured Recurring Deposit

This is a Recurring Deposit scheme with low cost life insurance cover.

• The account holder needs to be between 18 to 55 years of age, on the day of opening the deposit account.
• The minimum deposit amount is Rs. 100 and maximum is Rs. 10 lakhs.
• The deposit period ranges from 3 years to a maximum of 5 years.
• 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 sufficient.
• The bank provides nomination facility on your RD account.
• Senior citizens are not eligible for a higher rate of interest.
• The account holder doesn’t need to pay the premium amount upfront. The premium is recovered from the interest earned, at the time of closure.

Interest Offered on Dena Bank’s Recurring Deposit

Indian Bank offers competitive rates of interest for its Recurring Deposit Schemes. The rate of interest depends on the period of deposit and the scheme chosen, with the bank having the freedom to change the former.

Once the RD account matures, the principal, in lump sum, along with the interest amount is paid back to the account holder. This is applicable to all the RD schemes. To get more clarity on the interest rates offered, customers can visit the nearest Indian Bank branch or refer to the interest rate card on the bank’s website.

Know the Current Recurring Deposit Rates

• Indian Bank Recurring Deposit Rates Comparison with Other Banks and Institutions
• Indian Bank Recurring Deposit Interest Rates

Indian Bank RD Schemes

• Indian Bank Swarna Nidhi Recurring Deposit
• Indian Bank Variable Recurring Deposit