Indian Bank RD Interest Rates

RD known as recurring deposit is one of Indian Bank’s financial products that helps you add money at frequent intervals for a preset time under a predetermined rate of interest. Indian Bank offers Recurring Deposit (RD) accounts with competitive interest rates to help customers grow their savings for 2 kind of depositors, namely: senior and regular citizen.

Opening an RD account involves a minimum investment of Rs. 25 and offers adjustable tenure options ranging from 6 months to one year. Enjoy competitive Indian Bank RD Interest Rates ranging from 5.5% to 6.70% per year.

Explore this page to discover more about Indian Bank RD Interest, including features, perks, and other information.

Senior citizens receive an extra interest rate of 0.25% per year across all RD tenures when they create an RD account with Indian Bank, with a minimum monthly installment of Rs. 100. With attractive interest rates and various tenure choices ranging from 6 months to 10 years.

Indian Bank RD Rates

Indian Bank offers interest rates for all its deposit schemes, ensuring consistency and transparency for customers. The following are the interest rates given by the Indian Bank based on the customer's specified tenure.

Tenure Rate of interest for General citizens (p.a.)
6 months to less than 9 months 4.50% p.a.
9 months to less than 1 year 4.75% p.a.
1 year 6.10% p.a.
Above 1 year to less than 2 years 6.30% p.a.
2 years to less than 3 years 6.70% p.a.

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Note: The above-mentioned interest rates are subject to change and their deposits mentioned are less than Rs. 2 crore.
Senior citizens enjoy an extra interest of 0.25% p.a. across all RD tenures while opening an RD account with Indian Bank requires a monthly installment of Rs. 100.

Online RD Calculator

The maturity amount of your RD is determined by factors like duration, deposit amount, and interest rate. It is recommended that you utilise an RD calculator to precisely estimate your maturity amount before investing. Check the RD calculators as provided below.

Invested Amount :  ₹1,000
Total Interest :  ₹532
Maturity Amount :  ₹12,532

The formula for calculating the interest on his account is as follows:

A = P*(1 + R/N)^(Nt).

A is the maturity amount
P is the principle amount deposited each month
N is the compounding frequency (the number of quarters)
R is the interest rate
t is the tenure.

RD Interest Rates of Top Banks

Bank Recurring Deposit RD Interest Rates (p.a)
General Public
RD Interest Rates (p.a)
Senior Citizens
Indian Bank RD 4.50% to 7.25% 5.00% to 7.75%
IndusInd Bank RD 7.00% to 7.75% 7.50% to 8.25%
TMB RD 6.75% to 7.75% 7.00% to 8.25%
Dhanalakshmi Bank RD 6.50% to 7.25% 6.50% to 7.75%
State Bank of India RDs 6.50% to 7.00% 7.25% to 7.50%

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Note: The interest rates are subject to change. Do visit the official website for updated rates.

Besides banks, you can also invest in Post Office RD and calculate the return with a post office RD calculator.

Features of Indian Bank RD Rates

  1. An account may be opened with a minimum deposit of Rs. 25.
  2. The tenure ranges from 6 to 120 months.
  3. Indian Bank RD provides consumers with annual interest rates of up to 5.25%.
  4. The bank offers a nomination option for any family member or spouse to obtain the ultimate maturity amount.
  5. Life insurance coverage is also provided.
  6. To open an Indian Bank RD account, visit any nearest Indian Bank office.
  7. The minimum and the maximum deposit amount will be Rs. 25 per month and Rs. 1 Lakh per month respectively.
  8. Applicable interest rates are 3.95% to 5.15% which are subject to change and on another note, senior citizens do not have to receive additional benefits on interest rates.

Benefits of Indian Bank RD Rates

  • Deposit tenure varies from 6 months to 120 months: Indian Bank provides various deposit tenure choices ranging from 6 months to 120 months (10 years). Customers can select a duration that best suits their financial objectives and interests.
  • A wide selection of deposit plans to choose from: Indian Bank offers several RD plans designed to fulfil the different demands and preferences of its customers. Whether consumers want greater interest rates, more flexible deposit quantities, or other advantages, Indian Bank has a variety of plans to meet their needs.
  • Attractive interest rates: Customers with Indian Bank RD may benefit from excellent interest rates of up to 5.15% per year, allowing them to build their investments over time. The interest rate given may vary based on the deposit amount, term, and current market circumstances.
  • Attractive interest rates: Indian Bank RD clients may benefit from life insurance coverage, which provides financial stability and safety. In the event of an unexpected incident, life insurance coverage assures that the depositor's family or nominees get the guaranteed sum, providing peace of mind.
  • Nomination and loan facilities are available: Indian Bank RD allows depositors to choose a beneficiary who will receive maturity proceeds in the event of the depositor's untimely death. Customers can also get loans on their RD deposits, which gives them more liquidity and financial flexibility.
  • Better rates for seniors: Senior persons receive special interest rates on their RD deposits, which are often greater than those provided to ordinary deposits. This provides an incentive for elderly individuals to invest their resources in RD schemes, resulting in higher returns and financial stability after retirement.
  • Tax benefits: Indian Bank would waive income tax at source if the interest received in the RD account from all branches reaches Rs.40,000 for normal customers and Rs.50,000 for senior persons in a specific financial year. Previously, the TDS rate was 10%, but owing to the pandemic, it has dropped to 7.5%.

How to Open Indian Bank RD Account

To begin, create a savings account with Indian Bank and link it to your RD account. The process is straightforward and quick, and you may also visit your local branch to have a bank staff assist you with the transaction.

Eligibility to Open Indian Bank RD Account

There are eligibility criteria for opening a Recurring Deposit (RD) account. Listed below are a few criteria for opening an RD account:

  1. Resident of India
  2. All the senior citizens
  3. Hindu Undivided Families (HUFs)
  4. Minors ( above 10 years)

Document Required to Open RD Account

Before starting an RD account the customers should have the documents ready for the procedure, the documents needed are mentioned below:

  • The bank's application form must be filled out completely.
  • If a Pan Card is not available, please provide a copy or fill out the Form 60/61.
  • Two passport-sized photographs of the applicant are required.
  • Any genuine identity verification is required.
  • Proof of address must be presented.
  • Additional papers may be requested, depending on the applicant's profile.

Premature Withdrawal of Indian Bank RD

Customers are often given the option of premature withdrawal, which allows them to terminate their RD account before it matures. However, the interest earned may be impacted by the early closure date. Indian Bank allows premature withdrawals with altered interest rates. Partial withdrawals are only authorised in specific circumstances.

RD Schemes Offered by Indian Bank

Discover the variety of Recurring Deposit (RD) schemes offered by Indian banks, designed to help you save and reach your financial goals with ease. There are two types of RD schemes which are:

  • Variable RD Scheme
  • Insured RD Scheme

Variable Recurring Deposit
This program allows you to adjust the amount of your monthly instalments at any time. The least amount necessary to create such an account is Rs.25, with a maximum sum of Rs.1 lakh. The major advantage of this system is that no penalty is placed on the account owner if the monthly contributions are not made on time.

Insured recurring deposit.
This RD program provides life insurance coverage in addition to the entire interest generated on your investment. A minimum deposit of Rs.100 is required to start this account for a period of 3 to 5 years.

Different Types Of RD Interest

There are different types of RD interest provided by the Indian bank which would benefit the customer. These include:

  • Short-term RD interest rate
    Indian Bank provides a rate of interest on short-term RD accounts ranging from 4.50% to 4.75% per annum. Short-term RD accounts are those with a duration of 6 months to less than 1 year.
  • Mid-term RD interest rate
    Medium-term RD accounts have a duration of one to three years. The bank offers a rate of return ranging from 6.10% to 6.70% per annum.
  • Long-term RD interest rate
    Long-term recurring deposits at Indian Bank earn interest rates ranging from 6.10% to 6.25% per year. Long-term RD accounts are those with an investment period of more than three years.

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Frequently Asked Questions

The RD interest rate in Indian Bank ranges from 3.25% to 6.70% p.a. for general customers and from 3.75% to 7.20% p.a. for senior citizens. These rates are subject to change.

The interest rate for Bank of India RDs varies based on the tenure and prevailing market conditions. The minimum and maximum interest rates are 5.5% to 6.70% per annum.

RD interest is calculated based on the principal amount, tenure, and prevailing interest rate using a predefined formula.

To earn 10% interest, consider investing in fixed-income securities or high-yield savings accounts offered by various financial institutions.

Yes, senior citizens enjoy additional benefits such as higher interest rates and tax exemptions on RD interest earnings.

Interest for Indian Bank RDs is calculated using the compound interest formula, considering the principal amount, tenure, and applicable interest rate.

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