Indian Bank Recurring Deposit scheme can be considered as one of the best RD schemes to invest as a first-time investor. An Indian Bank RD account can be opened for a tenure ranging from 6 months to one year. The minimum deposit amount needed is just Rs. 25 and the Indian Bank RD interest rate that you can earn ranges from 3.95% to 5.14% p.a. Here, we have curated all the details about this deposit scheme including rates, features and eligibility.
In this article
- Indian Bank RD Interest Rates 2021
- Indian Bank RD Rates – Special Features
- Indian Bank RD Premature Withdrawal Rules
- How to Calculate RD Investment?
- Types of Indian Bank RD Accounts
- Eligibility Criteria for Opening an Indian Bank RD
- Documents Needed to Open an Indian Bank RD Account
- Indian Bank RD – FAQs
Indian Bank RD Interest Rates 2021
|Tenure||Interest rate for General Citizens||Interest Rate for Senior Citizens|
|181 days – 269 days||4.45%||4.95%|
|9 months – 364 days||4.45%||4.95%|
|1 year 1 day – 1 year 364 days||5.15%||5.65%|
|2 years – 2 years 364 days||5.15%||5.65%|
|3 years – 10 years||5.15%||5.65%|
Note: – The above table shows the interest rates for Deposits Less than 2 Crore*
Indian Bank RD Rates – Special Features
- The account can be opened with a minimum deposit of Rs. 25.
- The tenure ranges from 6 months to 120 months
- With Indian Bank RD, customers can enjoy an interest rate of up to 5.15% p.a.
- Nomination facility is provided by the bank to any family member or spouse to receive the final maturity amount
- Life insurance cover is also available
- An Indian Bank RD account can be opened by visiting any nearest Indian Bank branch
|Minimum deposit amount allowed||Rs. 25 per month|
|Maximum deposit amount allowed||Rs. 1 Lakh per month|
|Tenure for the RD||Ranges between 1 year and 10 years|
|Applicable interest rates||3.95% – 5.15% (is subject to change at the bank’s discretion); senior citizens do not have any additional benefits on interest rates.|
|Premature withdrawal||Not allowed|
|Late payment penalty charges||Not applicable|
Indian Bank RD Premature Withdrawal Rules
Usually, you get an option of premature withdrawal, i.e. breaking the RD before the maturity period, but the stated interest can get hampered and you might end up with less interest rate depending on how early you break the RD from the maturity date.
Indian bank allows premature withdrawal of the deposited amount but the interest earned on the amount will differ in that case (depends on bank rules). Partial withdrawal is not allowed.
How to Calculate RD Investment?
The interest amount on his account can be derived by the equation –
A = P*(1+R/N)^(Nt)
Where A is the maturity amount, P is the principal amount deposited each month, N Compounding Frequency (no. of quarters), and R is the rate of interest and t is the Tenure.
For example, if Mr. Singh opens a recurring deposit account by depositing Rs. 500 per month and continues to deposit regularly over a period of 24 months (two years), his account will attract an interest rate of 6.6% per annum.
According to the formula above, Mr. Singh will accumulate a maturity amount of Rs. 12859 on his RD (total investment – Rs. 12000 and total interest – Rs. 859).
Types of Indian Bank RD Accounts
Insured Recurring Deposit: Apart from the interest earned on your investment, this RD scheme provides you with life insurance cover. This account can be opened with a minimum amount of Rs. 100 for a period ranging from 3 years to 5 years.
Variable Recurring Deposit: Under this scheme, one gets the flexibility to change the monthly instalments. This account can be opened with a minimum deposit amount of Rs. 25 or a maximum of Rs. 1 lakh. The best thing about this scheme is no penalties are imposed if there’s any delay in the monthly instalments.
Eligibility Criteria for Opening an Indian Bank RD
- Resident individuals
- Senior citizens
- Hindu Undivided Families (HUFs)
Documents Needed to Open an Indian Bank RD Account
- Application form prescribed by the bank
- Pan Card copies or Form 60/61 (in case you don’t have a pan card)
- 2 passport size photos of the applicant
- Identity proof (any)
- Address Proof (any)
- Other documents (Depends on the applicant’s profile)
Indian Bank RD Calculator
The maturity amount on Indian Bank RD depends on certain factors entailing the tenure, deposit amount, rate of interest. One can make use of the RD calculator of Indian Bank to get the exact maturity amount. There are a plethora of websites offering RD calculator; you can use any of those to calculate the interest earned on the deposited amount. Recurring deposits are one of the best low-risk with a decent return of investment options available.
Indian Bank RD Deposit Interest Payout Options
Under the Indian Bank periodic interest payout option, the bank would transfer the interest earned at each interval (for instance, quarterly) to your bank account. The interest remains the same throughout the tenure of the deposit. The principal amount is transferred to your account o upon maturity of your RD (unless the deposit is renewed).
Indian Bank RD – FAQs
Ques. How to open a recurring deposit account at Indian Bank?
Ans. One can open a recurring deposit account at Indian Bank in both online and offline methods. For the online method, you must be an existing customer with active net banking. Log in to the net banking facility using the credentials provided. You will get the option of opening a recurring deposit account in the menu bar. Click on it and submit all the required documents. Once your documents have been successfully verified, you will be able to open a recurring deposit account. Finally, you can then decide the deposit amount and tenure.
Under offline method, you can also the nearest Indian Bank branch along with all the necessary documents. A bank representative will help you with the opening procedure of a recurring deposit account.
Ques. How is the interest calculated in Variable Recurring Deposit Scheme?
Ans. Interest is calculated and paid on the minimum balance between the 10th and the last day of the month.
Ques. Is there any penalty in the case of delayed instalment payments in the Variable RD scheme?
Ans. No. The bank doesn’t charge any penalty for delayed instalment payments under the Variable RD scheme.
Ques. What is the interest rate provided by Indian Bank RD to Senior Citizens?
Ans. Senior citizens can avail attractive rates of interest with the Indian Bank recurring deposit account. An additional interest rate of 0.5% over a regular rate is offered in case you fall into the senior citizen bracket.
Ques. Is investment in RD worth?
Ans. Recurring Deposits are indeed one of the best ways to invest a part of your hard-earned money that can provide a decent return on investment. Indian Bank RD interest rates are one of the most sought-after schemes for their higher rate of return and other benefits. Not to mention, reading the terms and conditions before proceeding with any sort of investment is necessary as the interest rates and other terms can be revised by the bank anytime.