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IDBI Bank RD Interest Rates 2022

IDBI Bank offers enticing recurring deposit interest rates and the tenure ranges from 1 – 10 years. Established in 1964, IDBI, short for Industrial Development Bank of India, is a private sector full-service universal bank that provides a wide range of banking services. One can open an IDBI RD account by depositing an amount as low as Rs. 100. The detailed interest rates are given down the page.

IDBI RD Interest Rates 2022

Tenure RD Rates for General Citizens RD Rates for Senior Citizens
1 year 5.05% 5.55%
1 year 1 day – 2 years 5.15% 5.65%
2 years 1 day – 3 years 5.20% 5.70%
3 years 1 day – 5 years 5.40% 5.90%
5 years 5.25% 5.75%
5 years 1 day – 10 years 5.25% 5.75%

Features of IDBI RD Interest Rates

  • IDBI offers a loan facility of 90% against your RD account
  • A nomination facility is provided so that you can nominate someone to collect your maturity amount.
  • The tenure of the deposit ranges from 6 months to 120 months (10 years)
  • An IDBI RD account can be opened by visiting any nearest IDBI branch
  • TDS deductions depend on the existing income tax rules set at the time of opening the RD account.
  • The IDBI RD interest rates go up to 5.25% for general citizens and 5.75% for senior citizens

How to Calculate the Maturity Amount on IDBI RD?

The formula used to calculate the amount received upon maturity is A = P(1+r/n) ^ nt.

Here

  • ‘A’ = final amount received
  • ‘P’ = principal
  • ‘r’ = annual interest rate
  • ‘n’ = number of times interest has been compounded
  • ‘t’ = tenure

Components of the IDBI RD

  • Premature Withdrawal Rules of IDBI RD Account

There will be a nominal amount of penalty on the applicable interest rate according to the RD scheme chosen in case the depositor decides to withdraw the deposited amount before the fixed tenure. Also, a partial withdrawal facility is not available at IDBI.

  • IDBI Recurring Deposit Scheme Eligibility 

To open an RD account, one must be a citizen of India or a HUF (Hindu Undivided Families)

  • An NRI can also opt for IDBI RD account through NRO (Non-Resident Ordinary Account) and NRE (Non-Resident External Account) accounts
  • A minor can also get an RD account opened in IDBI given that his/her parents will supervise the finances under their guardianship
  • Documents Needed to Open IDBI RD Account

Identity proof

  • Passport
  • PAN card
  • Voter ID card
  • Driving License
  • Government ID card
  • Photo ration card
  • Senior citizen ID card

Address Proof

  • Passport
  • Telephone bill
  • Electricity bill
  • Bank statement with cheque
  • Certificate /ID card issued by the post office

IDBI RD Tax Benefits

IDBI and all other recurring deposits are taxable under the Income Tax Act 1961. The money you invest in RD is included in your annual income and a TDS (Tax Deducted at Source) of 10% is applicable on the earned interest, given that it should be more than Rs.40,000 per year (was Rs.10000 prior to FY 2019-20). To save TDS on your RD profit, you can fill either Form 15G or Form 15H.

Penalty on Delayed Installment of IDBI Bank RD account

The bank may provide you with some extra days grace in case you are unable to make the payment beyond the due date due to some reasons. However, frequent irregular payments will not be entertained by the bank and a nominal amount of penalty will be levied by the bank as per their norms.

IDBI Bank RD Interest Rate Deciding Factors

The RD maturity amount including the interest rate depends on the following parameters:

Deposit Amount: The initial amount deposited by a customer in their account. The deposit amount for IDBI RD starts from as low as Rs 100.

IDBI RD Interest Rates: IDBI Bank offers a comparatively higher rate of interest on recurring deposits with longer tenure and lowers interest rates for an account opened for a shorter period. The highest interest rate offered by the bank is 5.90% for the deposit amount.

Deposit Tenure: As mentioned in the previous point, low-interest rates are offered for short tenure RDs and vice-versa.

Types of IDBI RD Schemes

1. SSP – Systematic Savings Plan

IDBI Systematic Savings Plan (SSP) enables them to save at their leisure. Every month, anyone can begin saving any fixed amount ranging from INR 100 to less than INR 2 crore. The strategy is appropriate for pre-planned financial objectives.

  • It is from 1 year to 10 years.
  • The minimum deposit is Rs.100.
  • The maximum deposit is Rs. 2 crores.
  • The RD can have a nominee.

2. SSP Plus – Systematic Savings Plan Plus

The SSP Plus scheme provides regular savings with principal and interest protection, as well as complimentary insurance coverage and incentive points.

  • It ranges from 3 years to 10 years.
  • The minimum deposit for the plan is Rs.5000 and thereafter in Rs.100.
  • The maximum deposit for the plan is Rs. 2 crores.
  • There is a personal accident insurance cover.
  • It has the option to avail loan.
  • There are no TDS deducted if the depositor submits form 15G or 15H.
  • Premature closure is applicable.

Factors Affecting IDBI Bank Recurring Deposit Rates

RBI’s Policies: Certain factors like the change in Cash Reverse Ratio (CRR) and repo rate as set by the RBI may affect the interest rates of all banking services including recurring deposits.

Recession: RBI releases funds in the market in times of recession, hence surfacing liquidity in the market. Owing to the high liquidity and low credit demand in the market, banks reduce their rates on RD.

Inflation: Inflation, on the other hand, has a positive effect on RD rates, and the market witnesses a rise in interest rates at the time of inflation.

State of the economy in India: With the economy going leaps and bounds, people tend to take larger credits to fulfill their personal and business requirements. Whenever there is high credit demand, banks offer higher interest rates to collect more funds through recurring deposits.

How to Open RD in IDBI Bank Online?

The IDBI RD account can be opened either offline by visiting your nearest IDBI bank branch by logging on to the bank’s net banking if you already have an account with the bank.

FAQs

Q1. What is the eligibility to open an IDBI RD account?

Any individual who is an Indian resident and HUF (Hindu Undivided Families). NRIs can also opt for an RD account through NRO and NRE accounts. Bank also provides an RD scheme for minors (less than 10 years of age) under the guardianship of parents to monitor their finances.

Q2. What are the documents required for IDBI Recurring Deposit Scheme?

Any valid identity proof and address proof will suffice along with passport size photographs of the applicant and duly filled application PNB RD account.

Q3. Does PNB allow partial withdrawal of the RD account?

No, the bank doesn’t allow partial withdrawal of recurring deposits.

Q4. How to add nominees to the RD account?

Nominees can be added while opening an RD account online by providing the details of the nominee. Whether it is in a single name or joint name, only one nominee per account is permissible.

Q5. How many reward points are received when the SSP Plus scheme is opened?

The bank offers up to 1,000 complimentary one-time redeemable reward points.

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