RBL Bank, formerly known as Ratnakar Bank, is one of the fastest growing private sector banks in India, with a strong market presence in most states and Union Territories. Currently, RBL Bank serves more than 7.3 million customers in India, offering several financial products as well as investment tools like recurring deposits. RBL recurring deposit allows a customer to invest a specified amount every month and to earn interest returns on the same, which is compounded periodically.
Eligibility Criteria for Investing in an RBL Recurring Deposit
Following is the necessary eligibility criteria for opening a RBL recurring deposit scheme –
- The customer has to be a residing Indian citizen to be eligible for opening a single or joint recurring deposit.
- Minors below 18 years of age can own an RD account, provided their guardian operates the account.
- Government bodies are eligible to open RBL recurring deposit.
- Proprietorship and partnership firms, as well as other organisations like Hindu Undivided Family can open an RD account.
- Clubs, associations, and other non-commercial organisations are also eligible to invest in recurring deposits offered by RBL Bank.
- Individuals with special needs and differently abled personal can open RBL Bank recurring deposit accounts in their name.
Documents Required to Open an RBL Bank RD
Customers will have to submit the following documents while opening a recurring deposit account with RBL Bank.
- Duly filled application form.
- Recent passport sized photograph.
- Proof of identity, like passport, PAN Card, Voter ID Card, Driving license, Senior citizen ID card, etc.
- Proof of address, such as post-paid telephone bill, utility bills, bank statement with cancelled cheque, any certificate or ID card issued by the Post Office, etc.
Other than that, applicants may also have to submit an introduction letter from an existing customer of RBL Bank if requested.
Interest Rates of RBL Recurring Deposit
Interest rates offered by RBL Bank vary between regular customers and senior citizens. The following table shows the current applicable rates –
|Total period for deposit||Interest rate (%) for amount of up to Rs.1 crore||Interest rate (%) for recurring deposits of Rs.1 crore of higher|
|7 days to 14 days||5.00||5.00|
|15 days to 45 days||6.00||6.00|
|46 days to 90 days||7.00||7.00|
|91 days to 180 days||7.15||7.25|
|181 days to 240 days||7.25||7.25|
|241 days to 364 days||7.35||7.50|
|12 months to less than 24 months||8.00||8.00|
|24 months to less than 36 months||8.05||8.05|
|36 months to less than 60 months||7.60||7.60|
|60 months to less than 120 months||7.60||7.60|
|120 months to 240 months||7.20||6.95|
Senior citizens are liable to get a slightly higher interest rate when compared to an ordinary customer. RBL recurring deposit interest rate applicable for senior citizens is the following –
|Total period of deposit||Interest rate (%) for amount of up to Rs.1 crore||Interest rate (%) for recurring deposits of Rs.1 crore of higher|
|7 days to 14 days||5.50||5.50|
|15 days to 45 days||6.50||6.50|
|46days to 90 days||7.50||7.50|
|91 days to 180 days||7.65||7.75|
|181 days to 240 days||7.88||7.88|
|241 days to 364 days||8.08||8.24|
|12 months to less than 24 months||8.77||8.77|
|24 months to less than 36 months||8.83||8.83|
|36 months to less than 60 months||8.35||8.35|
|60 months to less than 120 months||8.35||8.35|
|120 months to 240 months||7.93||7.66|
Premature Withdrawal of RBL Bank RD Terms and Conditions
Premature withdrawal of RBL recurring deposit is allowed under certain circumstances; 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.
Recurring deposits are subjected to income tax deduction (TDS) as per applicable rate at 10% of the total interest accrued, provided the total earnings exceed Rs. 40,000. Senior citizens enjoy tax waivers on interest income up to Rs. 50,000.
Individuals satisfying this eligibility criteria can enjoy such tax rebate by submitting Form 15G (15H for senior citizens) with RBL Bank.
It is imperative to note that PAN details of account holders have to be furnished while redeeming funds from an RD on maturity to avoid TDS deductions at 20% of total gains.
Loan against RBL Bank RD
RBL bank does not provide loans against their recurring deposit accounts. In case of emergency funding requirements, individuals can opt for premature withdrawal.
Advantages of RBL Bank RD
Customers can enjoy several benefits by investing in an RBL recurring deposit such as –
- RBL Bank RD offers one of the safest and easiest forms of investment, with assured and high-yield return at the end of the investment period.
- As little as Rs.500 can be invested to open a recurring deposit account, making it ideal for individuals who do not have a large accumulated sum to invest in instruments like an FD.
- Customers can deposit the sum to the RD via net banking.
- A flexible term of 6 to 240 months is offered, allowing an individual to select an investment tenor according to their financial requirement.
- The interest rate offered in RBL recurring deposit scheme matches that of fixed deposit interest rate, and the rate is locked at the time of opening an account. This ensures assured return while providing the facility of depositing smaller amounts on a periodic basis.
- Recurring deposits stay independent of market fluctuations, thereby ensuring capital appreciation without high risk.
- An investor can choose a nominee for their RBL Bank recurring deposit, for comprehensive financial security in case they face any unforeseen incident.
Ratnakar Bank Limited recurring deposit is an ideal investment tool for individuals who want asset appreciation against minimum market risk. An attractive rate of interest and flexible investment tenor allows every customer to setup a policy according to their unique financial requirements.
- Does recurring deposit accounts have a minimum lock-in period?
Ans – RBL Bank recurring deposit comes with a minimum lock-in period of 1 month (from the date of opening an account). After that period, the customer is allowed to close the account and withdraw the sum (against a penalty in case of premature withdrawal).
If the account is closed within 1 month of opening, the principal sum will be returned without any interest.
- What happens after the maturity of the account?
Ans – After the RBL recurring deposit matures, the sum is automatically transferred to the customer’s savings account.
- What is the minimum amount required to open an RD?
Ans – A minimum of Rs.500 can be invested in a recurring deposit.
- What is the minimum and maximum deposit period?
Ans – These investment options come with a minimum deposit period of 6 months, which can extend for up to 120 months.
- Is partial withdrawal available with RBL Bank recurring deposits?
Ans – Partial withdrawal of RD is not allowed with RBL Bank recurring deposits.
- Is the penalty applicable for delayed payment of instalment?
Ans – In case the instalment is not paid within the due date, RBL Bank may charge a certain percentage as penalty from the investor.
- How to apply for a regular RD?
Ans – Customers can visit any branch of RBL Bank to apply for a recurring deposit. They can also apply online for more convenience.
- Is there a minimum lock-in period?
Ans – A minimum lock-in period of 1 month is applicable for RBL Bank recurring deposit scheme.
- Can an investor close the account within 1 month?
Ans – If an investor closes the RD account within 1 month of opening, the principal sum will be returned with adding any interest.
- Are RDs market independent?
Ans – Yes, recurring deposits are market independent, offering assured yield. The applicable interest rate is specified at the time of investment, and investors enjoy the same rate throughout the deposit period.