Industrial Development Bank of India Limited, or IDBI Bank Limited, offers competitive rates on its Recurring Deposit (RD) schemes. If you are looking forward to saving systematically on a monthly basis, the RD schemes can be the best option out there available in the market.
In this article, let us take a closer look at the RD schemes, IDBI Bank RD interest rates, interest rate calculation, application procedure, premature withdrawal and much more.
Here are some of the key highlights of the recurring deposit scheme offered by IDBI Bank which is also known as the Systematic Savings Plan:
Tenure | 1 year to 10 years |
Interest Rates for General Public | 6.25% to 7% per annum |
Senior Citizen Interest Rates | 6.75% to 7.50% per annum |
Highest Rates for Public | 7% per annum |
Highest Rates for Senior Citizens | 7.50% per annum |
Minimum Deposit Amount | Rs. 500 |
Maximum Instalment Amount | Rs. 2 crore |
Let us take a closer look at the current IDBI Bank RD interest rates applicable for general public:
Duration | General Public (%) |
1 year to 2 years | 6.80 |
More than 2 years to less than 3 years | 7.00 |
3 years to 5 years | 6.50 |
More than 5 years to 10 years | 6.25 |
Let us take a closer look at the current IDBI Bank RD interest rates applicable for senior citizens:
Duration | Senior Citizens (%) |
1 year to 2 years | 7.30 |
More than 2 years to less than 3 years | 7.50 |
3 years to 5 years | 7.00 |
More than 5 years to 10 years | 6.75 |
There are two main types of recurring deposit accounts offered by IDBI bank, each catering to different requirements. Here are the two account types which are as follows:
The SSP is the regular recurring deposit scheme offered by the IDBI Bank providing assured returns ranging from 6.25% to 7% per annum. Moreover, senior citizens can enjoy an additional 0.5% over and above the standard rates. Similar to other deposit schemes, you can add a nomination to your SSP and the tenure typically ranges from 1 year to 10 years.
The SSP Plus is the combination of a recurring deposit account and Insurance protection along with complimentary insurance covering both the interest and the principal component of the deposit. It includes a complimentary personal accident insurance cover of up to Rs. 5 lakh and the minimum instalment amount of Rs. 5000 with a maximum deposit capped at Rs. 2 crore. Individuals and HUFs with tenures ranging from 3 to 10 years are eligible for this plan.
The IDBI Bank RD interest rates are compounded on a quarterly basis, enabling you to take advantage of the benefits of compounding. Let’s take a moment to review how to manually calculate the interest using the formula.
A = P*(1+R/N) ^ (Nt)
Here,
Let us understand the calculation of IDBI Bank RD interest rates with the help of an example:
Ms Yajna Seni starts a monthly RD of Rs. 1500 for a duration of 5 years i.e. 60 months (5x12=60). The rate of interest is 7.1% per annum; now let us find out the interest earned by Miss Mukherjee over the tenure.
A = P*(1+R/N) ^ (Nt)
A = 1500 * (1+7.1%/4) ^ (4*60)
M (maturity amount) = Rs.1,08,184.46
The total amount deposited by Ms Yajna Seni is Rs. 90,000 (1500 × 60)
Interest earned = Rs. 1,08,184.46 - Rs. 90,000 = Rs. 18,184.46
Therefore, Ms Yajna Seni will earn Rs. 18,184.46 as interest over the tenure.
You can also calculate the estimated returns by putting the tenure and monthly deposit amount in the IDBI Bank RD Calculator. This helps you get instant and accurate results from anywhere anytime.
Let us take a quick glance at some of the key features of IDBI Bank recurring deposits:
Let us have a quick look at the eligibility criterion for opening a recurring deposit account with IDBI Bank:
Let us explore some of the key documents required to open an RD account with IDBI Bank:
Opening an IDBI Bank Recurring Deposit (RD) account online is easy. Here are the steps you can follow:
If you holding a recurring deposit account with IDBI Bank and are willing to close it on a premature basis, here are the steps you can follow:
Now that you are aware of the IDBI RD interest rates 2025, let us have a quick look at some of the key benefits of IDBI Bank RD Account:
IDBI Bank's Internet banking and mobile application enables easy online account opening, monitoring, and management of RD accounts, offering convenience and flexibility.
The minimum amount required to start an IDBI RD is Rs. 500, making it accessible to all such as students, first-time investors, and low-income individuals, and promoting the disciplined habit of savings.
By requiring a fixed monthly deposit, an RD fosters a disciplined approach to savings, helping investors build a substantial corpus over time.
It offers guaranteed returns at a fixed rate of interest, making it a secure investment option unaffected by market volatility, ensuring steady growth of your savings.
Senior citizens enjoy an additional interest rate of 0.50%, allowing them to earn higher returns compared to the general public.
There can be circumstances when you might need to withdraw your RD amount before the stipulated time frame on a premature basis. However, premature withdrawals are subject to a certain amount of penalty charges. This can be a nominal percentage of the interest earned, and interest is calculated on the actual duration for which the RD amount was actually held.
To wrap up, saving in a recurring deposit can be ideal for individuals with a lower risk appetite who are looking forward to saving systematically and in a secured scheme. The IDBI Bank RD interest rates are quite lucrative, allowing customers to earn sizable returns by making regular investments. However, you can consider opting for the auto debit facility which will allow you to save a fixed sum of money without any kind of delays or misses.