IDFC Bank was founded as a public limited corporation to conduct banking operations. IDFC Bank began operations on October 1, 2015, following the obtaining of the final banking license from the RBI.
The bank operates and functions in three business segments, and they are - commercial and wholesale banking, rural banking, and personal and business banking. The majority of the branches of the bank are in rural India, and the bank's primary focus will be on customer service and digital banking.
Among the varied products and services that this bank offers, there is also the RD account scheme, which this post speaks about.
Here is the table to show the IDFC First Bank RD rates:
|
Tenure |
IDFC RD interest rates for General Citizens |
IDFC bank RD rates for Senior Citizens |
|
6 months |
6.75% |
7.25% |
|
9 months |
7% |
7.50% |
|
1 year |
7.25% |
7.75% |
|
1 year 3 months |
7.25% |
7.75% |
|
1 year 6 months |
7.25% |
7.75% |
|
1 year 9 months |
7.25% |
7.75% |
|
2 years |
7.25% |
7.75% |
|
2 years 3 months |
7.25% |
7.75% |
|
3 years |
7.25% |
7.75% |
|
3 years 3 months |
7.20% |
7.70% |
|
4 years |
7.20% |
7.70% |
|
5 years |
7.20% |
7.70% |
|
7 years 6 months |
7.20% |
7.70% |
|
10 years |
7.20% |
7.70% |
IDFC Bank provides domestic, NRE, and NRO recurring deposits with attractive interest rates. The bank's minimum monthly installment and term for opening an RD account are Rs.2,000 and 6 months, respectively.
Tenure can be extended up to ten years, with a maximum monthly amount of Rs.75,000. RD interest rates range from 6.25% to 7.25% for general residents, with senior people receiving 0.50% extra on all tenures.
The cap on interest income earned is Rs.40,000 every fiscal year for individuals and Rs.50,000 for senior persons. If the interest earned on FD and RD accounts across bank branches exceeds this limit, the bank will deduct income tax at source (TDS). TDS will be applied at a rate of 10%.
If the yearly income is lesser than the basic exemption limit, you can request that the bank will not deduct tax at source by submitting Form 15G or Form 15H.
1) Short Term: Short-term RDs are those with tenures ranging from 6 months to 1 year 6 months. The bank offers interest rates ranging from 6.75% to 7.25% per annum for such terms. Seniors over the age of 60 can get rates ranging from 7.25% to 7.75% p.a. for starting a short-term RD with IDFC bank.
2) Medium Term: Medium-term RDs have deposit terms ranging from one year and nine months to five years. IDFC pays interest on such loans at a rate ranging from 7.20% to 7.25% per annum. Senior citizens are offered annual rates ranging from 7.70% to 7.75%.
3) Long Term: Long-term RDs are deposited for a period of more than five years. The bank offers 7.20% p.a. interest to general residents and 7.70% p.a. interest to senior citizens.
4) NRE/NRO RD: IDFC offers the same interest rates on NRE and NRO recurring deposits. The main difference is that no additional interest is offered to older persons for any of the investment tenures.
The bank will give you some days of grace if there is a delay in the payment after the due date. If you do not pay the installment after the due date, you will be charged a penalty based on the norms. But, there is no penalty in the case of a non-payment of the periodic deposit.
There could be a premature withdrawal of the RD account with IDFC First Bank. You will be charged a nominal penalty according to the banking norms. There is no penalty for the non-payment, and a partial withdrawal on it is not allowed.
Q1. Is there partial withdrawal allowed in the IDFC First Bank RD?
Partial withdrawal of an RD will not be allowed by IDFC First Bank. Although, there are premature withdrawals allowed on the RD from the bank.
Q2. What is the duration of the IDFC First Bank RD account?
You can open this account with a maximum tenure of 10 years.
Q3. What will happen during the maturity of the RD account?
On the maturity of the bank account, you could also ask the bank for a transfer of the principal value and the accumulated interest component directly to your linked account.
Q4. Is there a nomination facility available for the IDFC First Bank RD account?
The nomination facility is available in the IDFC First RD account while you apply for it.
Q5. Who is eligible to open the RD account?
Indian residents and HUF can open this account. Even NRIs, NREs, and NROs can open this account with the bank.