Indian Bank allows individuals to open recurring deposit accounts with them. The accounts can be opened for a period that ranges between 6 months and 10 years. The interest paid on the deposits is in the range of 5.25% p.a. to 5.65% p.a. Citizens above the age of 60 years are offered additional interest of 0.50% of all RD tenures.
Know more about Recurring Deposit
Rate of return offered by Indian Bank on RDs
The interest rates offered by Indian Bank on recurring deposits depending on the tenure is mentioned in the table below:
|Tenure||Interest rate of general public (p.a.)||Interest rate of senior citizens (p.a.)|
|6 months to less than 9 months||5.25%||5.75%|
|9 months to less than 12 months||5.25%||5.75%|
|12 months 1 day to less than 24 months||5.65%||6.15%|
|24 months to less than 36 months||5.65%||6.15%|
|36 months to less than 60 months||5.65%||6.15%|
|Above 60 months||5.65%||6.15%|
Note: The mentioned rates are for deposits less than Rs.2 crore and effective 1 May 2020
Type of Recurring Deposits
Indian Bank offer two types of recurring deposits. They are:
- Regular recurring deposits
- Variable recurring deposits
Features of Regular Recurring deposits
Some of the features of Regular recurring deposits offered by Indian Bank:
- Interest is compounded quarterly
- The minimum monthly investment can be Rs.100
- Loan can be availed
- Nomination facility available
Features of Variable Recurring Deposit
The features of Variable Recurring Deposit are listed below:
- The initial deposit amount is Rs.500
- Can be opened for a period of 36 months
- There is no penalty for delayed payment of instalments
- TDS is applicable
- Can foreclose the account
- Can avail a loan against the outstanding balance amount
- Nomination facility available
Who can open a Recurring Deposit account with Indian Bank?
To open the variable recurring deposit with Indian Bank, you need to be:
- A Resident Indian
- A member of a Hindu Undivided Family (HUFs)
- Educational institutions
- Commercial organisations
- Partnership firms
- Charitable trust
How to open an Indian Bank RD?
You can open an RD account with Indian Bank either online or offline. You can book the RD through net banking or by visiting the bank branch along with the necessary documents.
The documents which need to be submitted are listed below:
- Passport-size photograph
- Identity proof
- Address proof
Short-term Recurring Deposit Interest Rates
Short-term RD accounts are those which have a tenure between 6 months and less than 12 months. General citizens who open such RD accounts are offered a rate of return of 5.25% p.a. while senior citizens are offered 5.75% p.a.
Medium Recurring Deposit Interest Rates
RD accounts opened for a period ranging between 12 months and 36 months are called medium-term Recurring deposits. Indian Bank offers interest in the range of 5.65% p.a. to 5.75% p.a. to general citizens while senior citizens are offered an additional interest of 0.50% p.a.
Long Term Recurring Deposit Interest Rates
Deposits opened for a period in excess of 3 years fall under the category of long-term recurring deposits. The interest paid by the lender on such tenures is 5.65% p.a. for general citizens and 6.15% p.a. to senior citizens.
Indian Bank Recurring Deposit FAQs
- What is the maximum amount which can be paid as instalment when opening a variable recurring deposit account?
The maximum amount which can be paid as instalment when opening a variable recurring deposit account is Rs.1 lakh.
Is TDS applicable on Regular Recurring Deposits?
Yes, TDS is applicable in regular recurring deposits
- Is a penalty for delayed payment of RD instalments with regard to regular recurring deposits?
You need to contact the bank officials to know about it.
- What is the purpose of RD calculator?
Using the RD calculator helps you compute the returns and know the exact amount which you will receive at the end of the investment tenure.
- Will I be charged a penalty if I foreclose my RD account?
Yes, the bank will charge you a penalty in case you foreclose your RD account.
RD Interest Rate Pages
- United Bank RD Interest Rates
- Uco Bank RD Interest Rates
- Allahabad Bank RD Interest Rates
- Central Bank RD Interest Rates
- Federal Bank RD Interest Rates
- Indian Bank RD Interest Rates
- Andhra Bank RD Interest Rates
- Kotak Mahindra RD Interest Rates
- Syndicate Bank RD Interest Rates
- IOB RD Interest Rates
- City Union Bank RD Interest Rates
- Citybank RD Interest Rates
- Indusind Bank RD Interest Rates
- Corporation Bank RD Interest Rates
- BOM RD Interest Rates
RD Other Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes