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Corporation Bank Recurring Deposit (RD) Interest Rates 2025

Q: What are the current RD interest rates offered by Corporation Bank for 2025?

Corporation Bank RD interest rates range from 5.75% to 7.00% for regular customers, with senior citizens receiving an additional 0.50% interest rate. Rates may vary depending on the tenure. Check the Corporation Bank website for the latest updates.

Q: What is the tenure range for Corporation Bank RD accounts?

Corporation Bank offers RD tenures ranging from 6 months to 10 years.

Q: Do senior citizens get higher interest rates on Corporation Bank RDs?

Yes, senior citizens enjoy an additional 0.50% interest on RD deposits across various tenures.

By Mayashree Acharya

Updated on: Dec 20th, 2024

11 min read

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.

This is the Latest RD Interest Rates 2025 for Corporation Bank

Highlights for 2025 Recurring Deposit Scheme of Corporation Bank

The below table provides details of the Corporation Bank recurring deposit scheme for 2025:

Tenure	6 months to 10 years
Senior Citizen Interest Rates	4.00% to 7.80%
General Public Interest Rates	3.50% to 7.30%
Highest Rates for Public	7.30%
Minimum Deposit Amount	Rs.100
Highest Rates for Senior Citizens	7.80%

Corporation Bank RD Interest Rates 2025

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:

Tenure	Interest Rates for the General Public (per annum)
7 to 14 days	3.50%
15 to 30 days	3.50%
31 to 45 days	3.50%
46 to 90 days	4.50%
91 to 120 days	4.80%
121 to 180 days	5.00%
181 to 332 days	6.35%
333 days	7.00%
334 to less than 1 year	6.35%
1 year	6.80%
More than 1 year to 398 days	6.80%
399 days	7.00%
400 days to 455 days	6.60%
456 days	7.30%
457 days to 2 years	6.60%
More than 2 years to 996 days	6.60%
997 days	6.40%
998 days to less than 3 years	6.60%
3 years	6.70%
3 years to 5 years	6.50%
More than 5 years to 10 years	6.50%

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:

Tenure	Interest Rates for Senior Citizens (per annum)
7 to 14 days	4.00%
15 to 30 days	4.00%
31 to 45 days	4.00%
46 to 90 days	5.00%
91 to 120 days	5.30%.
121 to 180 days	5.50%
181 to 332 days	6.85%
333 days	7.50%
334 to less than 1 year	6.85%
1 year	7.30%
More than 1 year to 398 days	7.30%
399 days	7.50%
400 days to 455 days	7.10%
456 days	7.80%
457 days to 2 years	7.10%
More than 2 years to 996 days	7.10%
997 days	6.90%
998 days to less than 3 years	7.10%
3 years	7.20%
3 years to 5 years	7.00%
More than 5 years to 10 years	7.00%

Types of Corporation Bank RD Accounts

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

Union Monthly Plus Recurring Deposit Scheme:
A flexible RD scheme with step-up and step-down facilities, allowing you to adjust the monthly deposit amount. The initial deposit amount, declared at account issuance, is considered the core amount. You can increase the monthly deposit up to 10 times the core amount, and reduce it but not below the core amount. Multiple deposits (up to 10 per month) are allowed. Minimum deposit: Rs.100, maximum deposit: Rs.1,00,000.

Union Bank of India Cumulative Deposit Scheme:
This scheme allows monthly deposits starting at just Rs.50, with no penalty for late or missed instalments. Premature closure is permitted as per bank norms. Ideal for small depositors who want to grow savings in a disciplined manner with small monthly contributions.

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

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

Opening Corporation Bank RD Account Offline

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

Visit your nearest Union Bank of India branch with your RD account details.
Navigate to the necessary authority member and ask for an RD account closure form.
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.
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.
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.

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Frequently Asked Questions

What are the current RD interest rates offered by Corporation Bank for 2025?

Corporation Bank RD interest rates range from 5.75% to 7.00% for regular customers, with senior citizens receiving an additional 0.50% interest rate. Rates may vary depending on the tenure. Check the Corporation Bank website for the latest updates.

What is the minimum deposit required to open an RD account with Corporation Bank?

You can open an RD account with Corporation Bank with a minimum deposit of ₹100 per month.

What is the tenure range for Corporation Bank RD accounts?

Corporation Bank offers RD tenures ranging from 6 months to 10 years.

Do senior citizens get higher interest rates on Corporation Bank RDs?

Yes, senior citizens enjoy an additional 0.50% interest on RD deposits across various tenures.

How is interest calculated on Corporation Bank RD accounts?

Interest on Corporation Bank RD accounts is compounded quarterly and credited to the account at maturity along with the principal amount.

Can I prematurely close my RD account with Corporation Bank?

Yes, you can close your RD account before maturity. However, a penalty may apply, and the interest will be recalculated based on the actual duration of the deposit.

What happens if I miss an RD installment?

If you miss an installment, Corporation Bank may charge a penalty. Repeated defaults could lead to reduced interest rates or account closure.

Can I open an RD account online with Corporation Bank?

Yes, Corporation Bank allows you to open an RD account online through Net Banking or by visiting the nearest branch.

Is TDS applicable on the interest earned from Corporation Bank RD?

Yes, TDS is applicable if the total interest earned in a financial year exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if eligible.

Can I take a loan against my RD with Corporation Bank?

Yes, Corporation Bank allows you to take a loan or overdraft against your RD deposit, typically up to 90% of the RD value.

Does Corporation Bank provide auto-renewal for RD accounts?

No, Corporation Bank does not offer auto-renewal for RD accounts. Upon maturity, the principal and interest are credited to your linked savings account.

Can I partially withdraw funds from my RD before maturity?

No, partial withdrawals are not allowed. You can only withdraw the entire amount by prematurely closing the RD account.

What documents are required to open an RD account with Corporation Bank?

For existing Corporation Bank customers, no additional documents are needed if KYC is completed. New customers must provide proof of identity, address, and PAN card.

Are there any special RD schemes offered by Corporation Bank?

Corporation Bank may offer special RD schemes with attractive interest rates or promotional benefits for specific tenures. Check the official website or visit a branch for more details.

Can I modify the deposit amount or tenure of my RD mid-term?

No, once the RD is created, you cannot modify the deposit amount or tenure. However, you can open a new RD with different terms.

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About the Author

Mayashree Acharya

Senior Content Writer

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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