RBL Bank provides recurring deposit schemes to its customers with attractive interest rates. One unique feature which makes it stands out is the tenure, which ranges from 6 months to 20 years. Recurring deposits are one of the best ways to save money as one earns interest on the money they have saved during a particular tenure. RBL provides senior citizens with the privilege of earning extra interest rates over the regular ones. RBL RD rate of interest goes up to 6.65% for general citizens and 7.15% for senior citizens.
|Tenure||RBL RD Interest Rates for General Citizens||RD Rates for Senior Citizens|
|181 days – 240 days||6.65%||7.15%|
|241 days – 364 days||6.65%||7.15%|
|1 year – 1 year 364 days||7.20%||7.70%|
|2 years – 2 years 364 days||7.25%||7.25%|
|3 years 2 days – 4 years 364 days||7.50%||8.00%|
|5 years – 9 years 364 days||7.00%||7.50%|
|10 years – 20 years||7.15%||7.65%|
|3 years – 3 years 1 day||6.65%||7.15%|
The interest on the RBL Recurring Deposit is compounded each quarter.
The formula used to calculate the maturity value is –
A= P x (1+R/N) ^ (Nt)
A represents the Maturity Amount.
P represents a Recurring Deposit amount deposited monthly
N represents the number of times the interest is compounded.
R represents the Rate of Interest
t represents the tenure
For example, Mr. C, who lives in Amritsar opens an RD account with the RBL Bank with a deposit of Rs 1000 for 4 years. The applicable interest rate for him is 7.2%. In this case, the total interest amount at the end of the maturity period will be Rs 5498, and his total maturity amount will be Rs 55716.
If you wonder what would be the lump sum amount once your RD is matured, you can go for the RBL Bank RD Calculator available online. You just have to enter some basic details pertaining to your RD account such as the tenure, monthly deposit amount, etc.
The bank may provide you with some extra time period in case you miss making 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.
RBL usually doesn’t allow Premature withdrawal of recurring deposit amounts, but under certain circumstances, it is permissible; however, RBL Bank may charge a penalty according to their current guidelines. In case of late monthly deposits on part of account holders, a penalty on the due amount is levied as per the bank policy, provided the deposit date is after the grace period is over.
TDS is deducted as per the income tax regulations set at the time of opening the account. However, if the interest earned from the deposit during the financial year exceeds Rs. 10,000 and the PAN details are not provided, the TDS will be deducted at a higher rate, i.e. 20%.
Q1. How to apply for a regular RBL RD account?
Customers can visit any branch of RBL Bank to apply for a recurring deposit. They can also apply online with the help of net banking (for existing customers) for more convenience.
Q2. What is the minimum deposit amount needed to open an RBL RD account?
The minimum amount to open an RD account in RBL bank starts from Rs. 500.
Q3. What are the minimum and maximum tenure of the RBL Bank RD account?
The minimum tenure is 6 months and the maximum tenure is 20 years
Q4. Does RBL Bank allow premature withdrawal of the RD amount?
No, RBL does not provide the facility of premature withdrawal on the RD account; the amount can only be withdrawn upon maturity. However, if you want to withdraw the amount before maturity, a nominal interest will be levied by the bank on the RBL RD amount as per the norms.
Q5. Is there any lock-in period on the RBL Bank RD account?
Yes, the minimum lock-in period is 3 months and if the account holder wishes to withdraw the amount before that, no interest is provided by the bank and the principal amount is refunded to the source.
Q6. Is the nomination facility available on RBL Recurring Deposit?
Yes, RBL bank provides a nomination facility to its customers on the RD account.