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 6.75% for general citizens and 7.25% for senior citizens.
In this article
- RBL Bank RD Interest Rates 2021
- RB Bank RD Interest Rates – Special Features
- Premature Withdrawal of RBL Bank RD
- How to Calculate RBL Bank RD Interest?
- Who are Eligible to Open a Recurring Deposit Account with RBL Bank?
- Documents Needed to Open RBL RD Account
- Penalty on Delayed Installment of RBL Bank RD account
- Taxation on RBL RD Interest Rates
- RBL RD Interest Rates – Frequently Asked Questions
RBL Bank RD Interest Rates 2021
|Tenure||RD Rates for General Citizens||RD Rates for Senior Citizens|
|181 days – 240 days||5.75%||6.25%|
|241 days – 364 days||5.75%||6.25%|
|1 year – 1 year 364 days||6.50%||7.00%|
|2 years – 2 years 364 days||6.50%||7.00%|
|3 years 2 days – 4 years 364 days||6.25%||6.75%|
|5 years – 9 years 364 days||6.25%||6.75%|
|10 years – 20 years||6.25%||6.75%|
|3 years – 3 years 1 day||6.75%||7.25%|
RB Bank RD Interest Rates – Special Features
- RBL bank offers attractive interest with the highest being 6.75% p.a. for general citizens whereas, for senior citizens, the interest rates go up to 7.25% p.a.
- The deposit tenure ranges from 6 months to 240 months (20 years)
- RBL Bank RD interest is compounded annually
- RBL provides a nomination facility and the nominee can also collect the final maturity amount
- TDS is deducted as per the preset income tax rules and regulations at the time of opening an account
- An RBL Bank recurring deposit account can be opened by either net banking if you are an existing customer of the bank or by visiting any nearest branch
- The minimum deposit amount required to open an RDB bank RD account is as low as Rs. 500
- RD opened via online channels are restricted to a maximum tenure of 10 years
- The penalty is applicable as per the bank norms If a customer misses a monthly payment on the due date
Premature Withdrawal of RBL Bank RD
RBL usually doesn’t allow Premature withdrawal of recurring deposit amount, 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.
How to Calculate RBL Bank RD Interest?
The interest on the RBL Recurring Deposit is compounded at 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.
Who are Eligible to Open a Recurring Deposit Account with RBL Bank?
- Any Indian resident can open an RD account in RBL bank either in a single name or jointly with another individual
- If the applicant is below 10 years of age, he/she should open an RD account under the guardianship of their parents
- Proprietorship firms, institutions, partnership firms, and other organizations including HUF are eligible to open a recurring deposit account
- Clubs, associations and other non-commercial organizations are also eligible for such account
Documents Needed to Open RBL RD Account
- PAN card
- Voter ID card
- Driving License
- Government ID card
- Photo ration card
- Senior citizen ID card
- Telephone bill
- Electricity bill
- Bank statement with cheque
- Certificate /ID card issued by the post office
Penalty on Delayed Installment of RBL Bank RD account
The bank may provide you with some extra time period in case you miss 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.
RBL Bank RD Calculator
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.
Taxation on RBL RD Interest Rates
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%.
RBL RD Interest Rates – Frequently Asked Questions
Ques. How to apply for a regular RBL RD account?
Ans. 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.
Ques. What is the minimum deposit amount needed to open an RBL RD account?
Ans. The minimum amount to open an RD account in RBL bank starts from Rs. 500.
Ques. What are the minimum and maximum tenure of the RBL Bank RD account?
Ans. The minimum tenure is 6 months and the maximum tenure is 20 years
Ques. Does RBL Bank allow premature withdrawal of the RD amount?
Ans. 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.
Ques. Is there any lock-in period on the RBL Bank RD account?
Ans. 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.
Ques. Is nomination facility available on RBL Recurring Deposit?
Ans. Yes, RBL bank provides a nomination facility to its customers on the RD account.