Indian Bank RD Interest Rates

Indian Bank Recurring Deposit scheme can be seen as the best RD schemes to invest as a first-time investor. An Indian Bank RD account can be created for a tenure ranging from 6 months to one year. The minimum deposit amount required is just Rs. 25 and the Indian Bank RD interest rate ranges between 3.95% and 5.14% p.a. Here, we have collected all the details about this deposit scheme which includes rates, features, and eligibility.

Indian Bank RD Features

  • A loan facility is available
  • A nomination facility is available
  • Interest will be paid on the minimum balance between the 10th and last day of the month.
  • The deposit tenure ranges between 6 months and 120 months
  • The minimum amount to be deposited can be done in multiples of Rs. 5
  • Visit any Indian Bank branch to avail of this service
  • TDS deductions are impacted by the existing income tax rules as at the time of opening the RD account

Indian Bank RD Interest Rates

Tenure Interest rates for General Citizens Interest Rates for Senior Citizens
180 days 3.95% 4.45%
181 days – 269 days 4.45% 4.95%
9 months – 364 days 4.45% 4.95%
1 year 5.25% 5.75%
1 year and 1 day – 1 year and 364 days 5.15% 5.65%
2 years – 2 years 364 days 5.15% 5.65%
3 years – 10 years 5.15% 5.65%

Types of Indian Bank RD Schemes

Indian Bank RDInsured Recurring Deposit: Besides the interest earned on your investment, this RD scheme offers you a life insurance cover. This account can be created with a minimum amount of Rs. 100 for a time period ranging from 3 years to 5 years.

Variable Recurring Deposit: In this scheme, one gets the flexibility to vary the monthly installments. This account can be created with a minimum deposit amount of Rs. 25 or a maximum of Rs. 1 lakh. The best is that in this scheme, no penalties are imposed if there’s any delay in the monthly installments.

Documents required to open Recurring Deposit Account in Indian Bank

  • Application form given by the bank
  • Pancard copies or Form 60/61 (in case you don’t have a pan card)
  • 2 passport size photographs of the applicant
  • Identity proof (if any)
  • Address Proof (if any)
  • Other documents (Depends on the applicant’s profile)

Indian Bank RD Rates – Premature Withdrawal

Premature withdrawal of RD with Indian Bank Bank is permitted. Indian Bank Bank may charge a nominal amount of penalty as per their banking norms. Yet, Partial withdrawal of the RD account is not allowed.

Loan against Recurring Deposit Indian Bank

Besides earning interest on your investment, the Indian Bank RD scheme allows you to avail of a loan against the deposit amount. You can create an account with a minimum amount of Rs.100 for a period ranging from 3 years to 5 years.

Calculation of Indian Bank RD Interest Rates

The maturity amount on Indian Bank RD is dependent on factors that include the tenure, deposit value, rate of interest. One can use the RD calculator of Indian Bank to get the exact maturity amount. There are plenty of websites providing RD calculators. Recurring deposits are the best low-risk and available with a decent return of investment options available.

RD Account Opening Process at Indian Bank

One can create a recurring deposit account at Indian Bank in both online and offline methods. For the online method, you must be a prevailing customer with active net banking. First, log in to the net banking facility using the details provided. You will have to choose the option of opening a recurring deposit account in the menu bar. Submit all the required documents. After successfully getting verified, you can open a recurring deposit account. At last, you can then decide the deposit amount and tenure.

Under the offline method, you can visit the nearest Indian Bank branch along with all the necessary documents. A bank representative will assist you with the opening procedure of a recurring deposit account.

Nomination Facility on Indian Bank RD

Nomination facility is available in Indian Bank recurring deposits. Only one nominee per account is permissible whether you open it in a single name or joint name. You must ensure that the nomination is followed as per RBI rules. You can change the nominee through declaration in appropriate form.

Tax Benefits on Indian Bank RD

The bank will deduct income tax at source (TDS) if the interest earned on FD and RD accounts across all bank branches exceeds Rs.40,000 per fiscal year for regular customers. The upper limit for senior citizens is Rs.50,000. Always keep in mind that TDS will be applied at a rate of 10%.

Due to the pandemic, TDS is currently reduced from 10% to 7.5 per cent, effective from May 2020 to March 2021. Only if your annual income is less than the basic exemption limit, submit Form 15G or 15H to request that the bank not deduct tax at source.

Also, check the Indian bank FD interest rates.

Indian Bank News Snippets

South Indian Bank gets shareholders’ nod for Rs 240 cr preference shares allotment to QIBs

NEW DELHI: South Indian Bank NSE -4.00 per cent, a private sector bank, said on Tuesday that its shareholders approved raising Rs 240 crore in equity capital through qualified institutional placement (QIP).

The bank’s shareholders approved the resolution for the preferential issue of equity shares at the bank’s extraordinary general meeting, according to the bank. South Indian Bank stated in a regulatory filing that the special resolution was passed with the required majority (99.96 per cent).

“The members of the bank have approved the creation, offer, issue, and allotment of 28,30,18,867 equity shares of Re 1 each for a consideration not exceeding Rs 239,99,99,992.2 to four investors, each of whom is a qualified institutional buyer (QIB) by way of preferential allotment on a private placement basis (preferential allotment),” the bank said.

Kotak Mahindra Life Insurance Co Ltd, HDFC Life NSE -1.01 per cent Insurance Co Ltd, and SBI NSE -2.24 per cent Life Insurance Co Ltd will each receive 8,84,43,396 shares worth Rs 75 crore under the resolution (Rs 74,99,99,998.1).

ICICI Lombard NSE -0.45 per cent General Insurance Co Ltd, on the other hand, will subscribe to 1,76,88,679 shares for Rs 15 crore (Rs 14,99,99,997.9). The EGM, which was attended by all ten directors of the board, was held via video conferencing and other audio-visual means.

Indian-Allahabad Bank merger

New Delhi: Over the weekend, the Indian Bank, which merged with the Allahabad Bank, performed a software migration. Furthermore, changes to Allahabad Bank account holders’ IFSC code, mobile banking app, chequebook, and passbook went into effect on Monday (February 15).

“The bank has successfully completed the process of technical migration of the erstwhile Allahabad Bank’s CBS/ITMS software to the CBS/ITMS software of Indian Bank,” it stated in a regulatory filing. The migration was carried out by Indian Bank on the 13th and 14th of February, and customers were warned that there might be some service disruptions.

There are now only four banks in the country as a result of this bank merger, and a transformation has begun for the customers of the bank that was merged with the other bank.

Following the merger of Allahabad Bank and Indian Bank, the new rules became effective today. Customers will now be required to use the new IFSC code for money transfers.

Indian Bank Recurring Deposit Interest Rates – FAQs

✅ How to calculate interest in Variable Recurring Deposit Scheme?

Interest is calculated and paid based on the minimum balance between the 10th and the last day of the month.

In the case of delayed instalment payments in the Variable RD scheme, is there any penalty?

No. The bank will not charge any penalty for delayed instalment payments under the Variable RD scheme.

What is the interest rate offered by Indian Bank RD to Senior Citizens?

Senior citizens can avail themselves of attractive rates of interest with the Indian Bank recurring deposit account. Also, an additional interest rate of 0.5% over a regular rate is offered in case you fall into the senior citizen bracket.

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