IDBI Bank Recurring Deposit (RD) Rates

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.

IDBI Bank Recurring Deposit Scheme Highlights For 2025

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:

IDBI Bank RD Interest Rates 2025

Let us take a closer look at the current IDBI Bank RD interest rates applicable for general public:

IDBI Bank Senior Citizen RD Interest Rate

Let us take a closer look at the current IDBI Bank RD interest rates applicable for senior citizens:

Types of IDBI Bank RD Accounts

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:

Systematic Savings Plan:

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.

Systematic Savings Plan Plus (SSP Plus):

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.

How to Calculate IDBI Bank RD Interest Rate?

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,

• A = Maturity Amount
• P = Principal (amount invested)
• N = Compounding Frequency 
• R = RD interest rate in percentage
• t = Tenure

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.

• P = Rs. 1500
• N = 4 (Quarterly)
• R = 7.1% pa
• t = 60 months

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.

Features of IDBI Bank RD interest rates

Let us take a quick glance at some of the key features of IDBI Bank recurring deposits:

• IDBI Bank offers a competitive rate of interest on its recurring deposits starting from 6.25% to 7% per annum for the general public and 6.75% to 7.5% for senior citizens.
• The recurring deposit tenure ranges from a minimum of 1 year to a maximum of 10 years. 
• Manage your RD account and all other related services via. feature-rich Internet banking and mobile banking applications.
• The minimum deposit amount can be as low as Rs. 500 per month with an upper limit of Rs. 2 crore.
• There are no additional charges for executing standing instructions.

Eligibility for Opening an IDBI Bank RD Account

Let us have a quick look at the eligibility criterion for opening a recurring deposit account with IDBI Bank:

• Indian Citizen
• Hindu Undivided Families (HUFs)
• An NRI can also avail an RD account through NRE and NRO accounts
• Minor can also open an RD account under guardianship.

Documents Required for Opening IDBI Bank RD Account

Let us explore some of the key documents required to open an RD account with IDBI Bank:

• Identity proof (aadhaar card, passport, driving licence, voter ID etc.)
• Address proof (passport, voter ID, driving licence etc.)
• Submit two passport-sized photographs.
• Duly filled IDBI Bank RD account opening form.
• A copy of the PAN Card or Form 60/61 (if the PAN card is not available). 
• Attach any additional documents relevant to partnership firms, proprietorships, HUFs, companies, etc.

How to open an IDBI Bank RD account?

Opening an IDBI Bank Recurring Deposit (RD) account online is easy. Here are the steps you can follow:

1. Login to your IDBI Net Banking account with your credentials. Register on the IDBI website if you are a first-time user.
2. Go to the ‘Deposits’ section and click on “Systematic Savings Plan (SSP)” among other deposit options.
3. Enter your monthly deposit amount and select a tenure based on your preference or any other additional details.
4. Include a nominee to ensure funds are transferred to your beneficiary. You can also choose auto-renewal options.
5. Review your details carefully such as the tenure, monthly deposit etc. and submit the application and your RD account will be initiated successfully.

How to Close an IDBI Bank RD account?

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:

1. Visit your nearest IDBI bank branch to collect and obtain a recurring deposit closure form. 
2. Fill out the form carefully and sign it before submitting it to the concerned executive.
3. Attach the self-attested copies of KYC documents (e.g. PAN card and an address proof) for all account holders along with the account closure form and submit.
4. Submit your RD passbook. Post verification, the bank will process the closure and will transfer the maturity balance to your chosen savings account.

Benefits of IDBI Bank RD Account

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:

Convenient Online Management: 

IDBI Bank's Internet banking and mobile application enables easy online account opening, monitoring, and management of RD accounts, offering convenience and flexibility.

Affordable Entry Point: 

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.

Encourages Regular Savings: 

By requiring a fixed monthly deposit, an RD fosters a disciplined approach to savings, helping investors build a substantial corpus over time.

Assured Returns: 

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.

Higher Interest Rates for Senior Citizens: 

Senior citizens enjoy an additional interest rate of 0.50%, allowing them to earn higher returns compared to the general public.

IDBI Bank RD Premature Withdrawal Rules

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.