IDBI Bank Recurring Deposit (RD) Rates

Updated on:  

08 min read

IDBI Bank’s Recurring Deposit (RD) account provides a channel for you to save money regularly and earn interest on your payments. It can be thought of a way to learn savings in the early days of your career. Here are all the details regarding IDBI Bank’s RD account you need to know.

Recurring Deposit Interest Rates 2021 of IDBI Bank

The interest rates given in the table below are effective from 18 November 2020.

Deposit TenureInterest Rate for Regular Customers (% p.a.)*
Interest Rate for Senior Citizens (% p.a.)*
1 year 55.50
Above 1 year up to 2 years5.105.60
Above 2 years up to 3 years5.105.60
Above 3 years up to 5 years5.105.60
5 years5.105.60
Above 5 years up to 7years5.105.60
Above 7 years up to 10 years5.105.60

*Interest rates are subject to change from time to time.

Different Types of IDBI Bank RD Schemes

  • IDBI Bank Systematic Savings Plan (SSP):

    SSP allows you to add your savings to the account at your convenience. Start saving a fixed amount every month from Rs.100 up to Rs.2 crore per month. The monthly instalments will be deducted from your savings account automatically upon your consent. Choose the tenure for the account based on your financial goals. You can open this account to realise the pre-planned future goals.

  • SSP Plus:

    This scheme offers features and benefits similar to that of the SSP scheme. Also, you get protection against the principal and interest earned, complimentary personal accident insurance cover of up to Rs.5 lakh, and one-time redeemable reward points, i.e. up to 1,000 points. The minimum monthly instalment is Rs.5,000, and minimum tenure is three years in this case.

IDBI Bank RD Special Features and Benefits

  • Set standard instructions to deduct funds from your savings account to the SSP account for free.
  • The minimum monthly deposit is as low as Rs.100.
  • The tenure for the account can be anything from one year up to 10 years.
  • Premature withdrawals are allowed subject to certain conditions.
  • Nomination facility is available.
  • Open the account online (net banking and mobile banking) or by visiting the nearest bank branch.

Basic Eligibility Criteria for IDBI Bank RD

  • Resident individuals
  • Hindu Undivided Families (HUFs)
  • Non-Resident Indians (NRIs)

Tax Liabilities on IDBI Bank Recurring Deposit

The limit on the interest income earned for regular customers is Rs.40,000 per financial year and is Rs.50,000 per financial year for senior citizens. Income tax will be deducted at source (TDS) by the bank if the interest earned on the FD and RD accounts across all the bank branches per financial year exceeds this limit. Note that TDS will be applicable at 10%.

TDS is now reduced from 10% to 7.5% due to the pandemic, effective from May 2020 until March 2021. You can submit Form 15G or Form 15H, as applicable, to request the bank not to deduct tax at source only if your annual income is within the basic exemption limit.

RD Interest Rate Calculator

Visit our free RD calculator page to know how much returns you can expect by investing in RD over a while.

Frequently Asked Questions (FAQs)

Does same interest rates apply to both SSP and SSP Plus schemes?

Yes. The same interest rates apply for both SSP and SSP Plus schemes. Refer to Section 1 in this page for the applicable interest rates.

How do I access the reward points under SSP Plus?

Upon making the first three instalments successfully, the account holder will receive 600-1,000 reward points on their debit card. For a monthly instalment amount in the range of Rs.5,000 up to Rs.25,000, 600 reward points will be credited. For a monthly instalment of Rs.25,000 and above, 1,000 reward points will be credited. Note that each reward point equals Re.0.25.

Does the same interest rates apply for domestic and non-resident account holders?

As of the current rates, the same interest rates apply to domestic and non-resident account holders.

Can I make a premature withdrawal on an SSP account?

You can make a premature withdrawal on an SSP account. However, you need to know that the interest payable on premature withdrawals will consider the factors, such as the rate applicable for the amount, the period for which the deposit was held in the account, and a penalty of 1% on the applicable rate.

Similar Banks Offering RD

Edit
Similar Banks Offering RD
SBI BankHDFC BankICICI BankIndian bank
AXIS BankKOTAK BankUnion Bank of IndiaCanara Bank
Bank of BarodaIDBI BankBank of IndiaAndhra Bank
Central Bank of IndiaAllahabad BankPNB
Syndicate BankCorporation BankRBL Bank

inline CTA
Invest in Direct Mutual Funds
Save taxes upto Rs 46,800, 0% commission