Corporation Bank Recurring Deposit (RD) Rates

Corporation Bank and Andhra Bank have been merged under Union Bank of India. Visit the Union Bank of India RD Interest Rates page for more details.

Corporation Bank, now merged with Union Bank of India, offers its customers Recurring Deposit (RD) schemes with varied maturity periods. RD accounts are convenient investment schemes for individual investors who do not want to invest a lump sum amount.

Continue reading this article to gain detailed insights about the Corporation Bank RD interest rates. 

Corporation Bank Recurring Deposit Scheme Highlights for 2024

The below table provides details of the Corporation Bank recurring deposit scheme for 2024:

Corporation Bank RD Interest Rates 2024

The Corporation Bank RD interest rates vary from one period to another. Here is a detailed overview of the Corporation Bank RD interest rates prevalent during the year 2024:

Corporation Bank Senior Citizen RD Interest Rate

Corporation Bank offers a higher interest rate for senior citizens. The table below provides the interest rates for Corporation Bank senior citizens RD accounts:

Types of Corporation Bank RD Accounts

Corporation Bank, after merging with Union Bank of India, offers the following types of recurring deposit scheme:

1. Union Monthly Plus Recurring Deposit Scheme

The Monthly Plus Recurring Deposit Scheme is a flexible deposit scheme with step-up and step-down facilities. This means you can increase or decrease the monthly deposit amount in your account. However, you must declare the initial deposit amount at the time of your RD account issuance, which is considered the core amount. 

You are allowed to increase the monthly amount up to 10 times the core amount. You can reduce the existing monthly amount but not less than the core amount. You can also deposit more than once a month, within a maximum of 10 deposits monthly. The minimum deposit amount is Rs.100, and the maximum amount is Rs.1,00,000. 

2. Union Bank of India Cumulative Deposit Scheme

Under the Cumulative Deposit Scheme, you can make monthly deposits with just Rs.50. No penalty is charged for late or missed instalments. Premature closure of this account is also allowed under this scheme as per the norms of the bank. This scheme is ideal for small depositors who can deposit small amounts monthly and grow their savings in a disciplined manner.

Features of Corporation Bank RD Interest Rates

Recurring Deposit is an ideal product for an individual with regular income to grow savings by depositing a certain fixed amount monthly to earn attractive rates of interest. 

Here are the distinguishing features of RD interest rates of Corporation Bank:

• The minimum deposit amount is Rs.100 monthly, and the maximum is Rs.1,00,000.
• For the recurring deposit, the investment period usually ranges between 6 months to 10 years.
• The interest on the deposit amount is compounded quarterly and is paid on the maturity of the deposit.
• Individual depositors can opt for loans against the recurring deposit amount.
• Nomination facility is available.
• No penalty is charged if an individual depositor fails to pay the instalment amount for a month.

How to Calculate Corporation Bank RD Interest Rate?

There are several factors to consider for the efficient calculation of Corporation Bank RD interest rates. These factors include the investment tenure, interest rate, and invested funds.

The formula to calculate RD interest calculations is as follows:

A = P x (1 + r/n) ^ (n x t)

Where:

A is the maturity amount

P is the monthly instalment amount   

r is the interest rate

n is the number of times interest is compounded 

t is the tenure

Let us now look at an example of the same to have a better understanding:

Suppose, you invest Rs.7,000 per month in a Corporation Bank RD for 2 years at an annual interest rate of 6.60%. Here:

• P = Rs.7,000 
• n = 4 
• r = 0.066
• t = 24

A = 7000 x (1 + 0.066/4) ^ (4 x 24)

So, A = Rs.1,79,984

Interest accumulated = Rs.11,984

Use our Union Bank RD Calculator to easily calculate your RD interest and maturity amount in seconds.

Eligibility for Opening Corporation Bank RD Account

Here is a detailed overview of the eligibility of individuals who can open a recurring deposit:

• An individual is eligible to open an RD bank account in her/her name and two individuals can also open an account jointly
• A minor is eligible to open an RD account under parental guardianship
• Government departments, associations, clubs, HUFs, companies, and partnership firms are also eligible for the account opening

Documents Required for Opening Corporation Bank RD Account

The documentation process involved in opening an RD account in Corporation Bank is simple. Make sure to keep the relevant documents ready to open an RD account with Corporation Bank with ease. Here are the documents mandatory for opening an RD account:

Proof of Identity

• PAN card
• Passport
• Voter ID card
• Photo ration card
• Government ID card
• Senior citizen ID card
• Driving licence

Address Proof

• Telephone bill
• Passport
• Electricity bill
• Certificate/ ID card issued by the post office
• Bank statement with cheque

How to Open a Corporation Bank RD Account?

Opening an RD account in Corporation Bank is a simple and straightforward process. This bank allows individual depositors to open an RD account offline or online. Below is a detailed discussion of all the methods to open an RD account with Corporation Bank:

Opening Corporation Bank RD Account Online

1. Log in with your credentials to the Union Bank of India Netbanking portal.
2. Navigate to the option to open a Recurring Deposit account.
3. Enter the requested information, such as instalment amount, account number, tenure, etc.
4. Choose a nominee after checking the applicable interest rate.
5. Read the terms and conditions and tick the checkbox.
6. Click on the ‘Submit’ option to complete your RD account application process.

Opening Corporation Bank RD Account Offline

1. Visit your nearest Union Bank of India branch with your savings account details.
2. Navigate to the necessary authority member and ask for an RD account application form.
3. Fill in the application form by providing all the essential details including deposit tenure, instalment amount, payment mode, nominee, etc.
4. Make your first deposit in cash or by using a cheque.
5. Submit the application form along with copies of the required documents to the branch officials.

Upon creating your RD account successfully, the Corporation Bank issues an RD account number along with other documents to the bank. 

How to Close Corporation Bank RD Account?

If you want to close your RD account in Corporation Bank, make sure to follow the below process:

1. Visit your nearest Union Bank of India branch with your RD account details.
2. Navigate to the necessary authority member and ask for an RD account closure form.
3. Fill in the required details. Please note that if the RD account has a joint holder, the closure accounts will need their signature and consent as well.
4. Attach the self-attested copies of the required documents with the closure form. These include KYC, PAN card, address proof, identity proof, RD account receipt, RD certificate, etc.
5. Submit the form to the branch officials.

Benefits of Corporation Bank RD Account

Let us look into the several benefits of opening an RD account with Corporation Bank:

• RD account is safe and secure for any risk-averse individuals.
• RD is one of the trustworthy investment options as it provides a fixed rate of return.
• It is ideal for individual depositors who are willing to begin savings with a minimal amount.
• It helps to achieve desired financial goals.
• Anyone can open an RD account without depositing a lump sum amount.
• Senior citizens can avail an additional rate of interest on the deposited amount.
• RD account inculcates a habit of saving regularly to build a secured financial future.
• Individuals can go for premature withdrawal by opening an RD account in the Corporation Bank.
• The deposited amount can be utilised further as collateral for loan applications.
• A nomination facility is applicable.

Corporation Bank RD Premature Withdrawal Rules

Premature closure of the Corporation Bank RD account is allowed anytime during your RD tenure without penalty. Moreover, there is no penalty also in case of a delay or missed instalment. 

Recurring deposits are one of the most efficient ways to save money monthly. Most importantly, Corporation Bank RDs inculcate the habit of savings over time. If you have a long-term goal and cannot invest a lump sum amount in one go, investing in a recurring deposit is ideal. 

Similar Banks Offering RD