Indian Bank Recurring Deposit (RD) Rates

Updated on: Jun 9th, 2024


4 min read

Indian Bank offers two types of recurring deposit (RD) schemes with different features and functionalities. Both the schemes require you to make monthly instalment payments over a specific period to earn attractive interest rates. Find out the details of the schemes here.

Recurring Deposit Interest Rates 2022 of Indian Bank

The interest rates given below are effective from 5 November 2020.

Deposit TenureInterest Rates for General Customers (% p.a.)*Interest Rates for Senior Citizens (% p.a.)*
180 days44.5
181 days to 269 days44.5
9 months to 364 days4.44.9
1 year55.5
1 year 1 day to 1 year 364 days4.955.45
2 years to 2 years 364 days5.105.60
3 years to 10 years5.255.75

*The interest rates are subject to change from time to time.

Different Types of Indian Bank RD Schemes

  • Recurring Deposit:

This is a regular RD scheme offered by the bank where the interest is compounded every quarter. You can let your monthly savings grow into a bigger sum over the specified period. The minimum monthly instalment is Rs.100 and in multiples of Rs.100 thereafter. The minimum tenure is six months and in multiples of three months thereafter.

  • Variable Recurring Deposit:

The scheme allows you to make varying monthly instalments and thus the name. The minimum initial deposit for the scheme is Rs.500 and in multiples of Rs.100 thereafter. The maximum initial deposit is Rs.1 lakh. However, there is an option for you to carry the monthly instalment up to Rs.10 lakh. The tenure of the account is fixed and is 36 months.

Indian Bank RD Special Features and Benefits

  • Minimum monthly deposit amount is Rs.100.
  • Minimum tenure is six months.
  • Maximum tenure is 10 years.
  • Loan and nomination facilities are available.
  • TDS is applicable.
  • Premature withdrawal is allowed subject to conditions.
  • Senior citizens receive an additional interest rate of 0.5% over and above the regular rates.

Basic Eligibility Criteria for Indian Bank RD

  • Resident individuals
  • Minors
  • Senior citizens
  • Hindu Undivided Families (HUFs)

Tax Liabilities on Indian Bank Recurring Deposit

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 exceeds Rs.40,000 per financial year for regular customers. The limit for senior citizens is Rs.50,000. 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. Submit Form 15G or 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

Figure out the returns you can expect with the help of our free RD calculator based on the monthly instalments you can make in an RD account over a certain period.

Frequently Asked Questions (FAQs)

How is interest calculated in the case of Variable Recurring Deposit Scheme?

Interest will be calculated and paid on the minimum balance between the 10th and the last day of the month.

Does the bank levy a penalty in the case of delayed instalment payments for Variable RD scheme?

No. The bank doesn’t levy any penalty for delayed instalment payments regarding the Variable RD scheme.

Does the additional interest rate for senior citizens apply in all cases?

The additional rate of 0.5% paid to senior citizens is applicable for an aggregate amount of up to Rs.10 crore and only for domestic customers. Also, the tenure of the account must be a minimum of six months up to 120 months. Also, the first account holder of the RD account must be a senior citizen to get the benefit. However, no single deposit account can be opened with more than Rs.2 crore within the overall limit of Rs.10 crore tagged to a single CIF in a single day.

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Quick Summary

Indian Bank offers two RD schemes with varying features and benefits. Interest rates are subject to change. Basic eligibility criteria include resident individuals, minors, senior citizens, and Hindu Undivided Families; TDS applies if interest earned exceeds specific thresholds. The bank provides an option for TDS reduction due to the pandemic. An RD interest rate calculator is available for estimating returns. FAQs address interest calculation, penalties for delayed payments, and eligibility for additional interest rates for senior citizens.

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