Indian Bank Recurring Deposit
Individuals can open recurring deposit accounts with Indian Bank. Accounts can be opened for periods ranging from six months to ten years. The interest rate on the deposits ranges from 5.25 percent to 5.65 percent per year. Citizens over the age of 60 are eligible for an extra 0.50 percent interest rate on all Recurring Deposite tenures.
Indian Bank Rate of Return on Recurring Deposit’s
The table shows the interest rates offered by Indian Bank on recurring deposits based on the term:
|Tenure||The interest rate of the general public (p.a.)||
The interest rate of senior citizens (p.a.)
|6 months to less than 9 months||5.25%||5.75%|
|9 months to less than 12 months||5.25%||5.75%|
|12 months 1 day to less than 24 months||5.65%||6.15%|
|24 months to less than 36 months||5.65%||6.15%|
|36 months to less than 60 months||5.65%||6.15%|
|Above 60 months||5.65%||6.15%|
Note: The mentioned rates are for deposits less than Rs.2 crore and effective 1 May 2020
Type of Recurring Deposits
- Regular recurring deposits
- Variable recurring deposits
Features of Regular Recurring deposits
Some of the features of Regular recurring deposits offered by Indian Bank:
- Interest is compounded quarterly
- The minimum monthly investment can be Rs.100
- The loan can be availed
- Nomination facility available
Features of Variable Recurring Deposit
The features of Variable Recurring Deposit are listed below:
- The minimum initial deposit is Rs.500.
- It is possible to open it for a span of 36 months.
- There are no penalties for paying installments late.
- TDS may be used.
- Can put a stop to the account.
- Can take out a loan to cover the unpaid balance.
- There is a nomination option open.
Who can open a Recurring Deposit account with Indian Bank?
To open the variable recurring deposit with Indian Bank, you need to be:
- A Resident Indian
- A member of a Hindu Undivided Family (HUFs)
- Educational institutions
- Commercial organizations
- Partnership firms
- Charitable trust
How to open an Indian Bank Recurring Deposit?
Indian Bank offers both online and offline options for opening a Recurring Deposit account. You may book the Recurring Deposit online or in person at a bank branch, along with the necessary documents.
The documents which need to be submitted are listed below:
- Passport-size photograph
- Identity proof
- Address proof
Short-term Recurring Deposit Interest Rates
Short-term RD accounts are those with a duration of six months to twelve months. General citizens are given a 5.25 percent p.a. rate of return on such RD accounts, while senior citizens are offered a 5.75 percent p.a.
Medium Recurring Deposit Interest Rates
Medium-term Recurring Deposits are Recurring Deposit accounts that have been opened for a duration of 12 to 36 months. General citizens receive interest rates ranging from 5.65 percent to 5.75 percent per annum, with senior citizens receiving an additional 0.50 percent per annum.
Long Term Recurring Deposit Interest Rates
Long-term recurrent deposits are those that have been opened for a duration of more than three years. The lender pays 5.65 percent p.a. in interest to general citizens and 6.15 percent p.a. to senior citizens on those tenures.
✅ What is the maximum amount which can be paid as an installment when opening a variable recurring deposit account?
When opening a variable revolving deposit account, the maximum amount that can be charged in installments is Rs.1 lakh.
✅ Is TDS applicable on Regular Recurring Deposits?
Yes, TDS is applicable in regular recurring deposits
✅ Is a penalty for delayed payment of RD installments with regard to regular recurring deposits?
You need to contact the bank officials to know about it.
✅ What is the purpose of the RD calculator?
Using the RD calculator helps you compute the returns and know the exact amount which you will receive at the end of the investment tenure.
✅ Will I be charged a penalty if I foreclose my RD account?
Yes, the bank will charge you a penalty in case you foreclose your RD account.