Indian Bank Recurring Deposit (RD) Rates

The Indian Bank, one of the oldest public sector banks in the country, provides a range of banking, investment, and lending services. Among its various investment tools, Recurring Deposits (RDs) are among the most useful for people looking to grow their savings over the long term. RDs offer flexibility and the benefits of disciplined investment, along with the complete safety of the deposited capital. 

Check the details of Indian Bank recurring deposits below to make an informed decision.

Indian Bank Recurring Deposit Scheme Highlights for 2024

Here are the most important details of Indian Bank RDs you need to know:

Indian Bank RD Interest Rate 2024

Following are the Indian RD interest rates 2024 applicable to regular depositors (for deposits under Rs. 3 crore):

Indian Bank Senior Citizen RD Interest Rate

Here are the Indian Bank senior citizen RD interest rates 2024 for (for deposits of up to Rs. 10 crore):

Types of Indian Bank RD Accounts

Indian Bank offers the following types of recurring deposit accounts:

Recurring Deposit (Regular) 

The regular RD allows you to grow your savings over time to meet your financial needs at the end of the tenure. Here are its features:

• Deposit Amount: Initial deposit of at least Rs. 100 and in multiple thereof up to Rs. 10 crore
• Tenure: 6 months to 10 years
• Facilities Available: Nomination, loan against RD and preclosure

Variable Recurring Deposit 

Variable RDs allow depositors to change the instalment amounts each month. Here are its features: 

• Deposit Amount: Initial deposit of Rs. 500 and in multiples thereof up to Rs. 1 lakh. Subsequent instalments can be up to Rs. 10 lakh per month. 
• Tenure: 3 years 
• Facilities Available: No penalty on delayed payments, nomination, loan and foreclosure

How to Calculate Indian Bank RD Interest Rate?

Recurring Deposits (RDs) in India usually provide compound interest, which is calculated on both your principal deposit and accumulated interest. Here is the formula and calculation of Indian Bank recurring deposit interest rates:

Formula

A = P x (1 + r/n) ^ (n x t)

Where 'A' is the amount at maturity, 'P' is the principal amount, 'r' is the rate of interest, 'n’ is the compounding frequency and ‘t’ is the time duration in months. 

Let’s take the example of a Rs. 6,000 per month recurring deposit over a tenure of 1 year for a depositor below 60 years of age. The applicable Indian Bank RD interest rate will be 6.10% p.a.

For this deposit, the maturity proceeds will be Rs. 74,411 (6000 x (1 + 0.061/4) ^ (4 x 12). Meanwhile, the interest payout will be Rs. 2,411.

Use our Indian Bank RD Calculator to easily calculate your RD interest and maturity amount in seconds.

Features of Indian Bank RD 

The following points show the key features and benefits of Indian Bank recurring deposits:

• Deposit Limits 

You can open a recurring deposit with a monthly instalment of just Rs. 100. The upper limit is Rs. 10 crore, while the maximum limit of a single deposit in a day is Rs. 2 crore. 

• Flexible Deposits 

The Indian Bank offers a special RD, where you can deposit variable monthly instalments. This facility comes with zero penalty on delayed payments. In addition, the bank offers special RDs for NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin).

• Tenure 

The minimum maturity period for an RD with Indian Bank is 6 months. After that, the RD’s tenure can be in multiples of 3 months up to 10 years. 

• Additional Interest Rates 

For all types of deposits at Indian Bank, senior citizens depositors can avail an additional 0.5% p.a. interest rate. 

• Bulk Deposits Accepted 

Indian Bank accepts bulk deposits up to Rs. 10 crore for recurring deposit accounts, allowing individuals to park a substantial sum of money with complete safety.

Eligibility for Opening Indian Bank RD Account

Anyone with a savings account with Indian Bank can open a recurring deposit. The following are eligible to open an RD at Indian Bank:

• Resident Indian, NRI, PIO or HUF (Hindu Undivided Family) 
• Must be above 18 years of age
• In the case of minors, the account must be held by parents or guardians

Documents Required for Opening Indian Bank RD Account

The following documents are required to open an Indian Bank RD:

• RD application form provided by the bank
• PAN card or Form 16 
• Identify proof (Voter ID, Aadhaar card, passport, driving licence, etc.)
• Address proof (Voter ID, ration card, utility bills, passport, etc.)
• Passport-size photographs
• Other documents (as requested by the bank)

How to Open an Indian Bank RD Account?

You can open an Indian Bank RD account either online or offline. 

Online Process

1. Login to the Indian Bank Net Banking website. 
2. Select the 'E-Recurring Deposit' option. 
3. Next, fill out the application form, link your savings account, and issue standing instructions to open an RD account.
4. After verifying the information, click ‘Continue’ to submit your application and set up the RD account.

Offline Process

1. Visit the nearest Indian Bank branch.
2. Ask for an RD account application form from the bank officials.
3. Fill in the application form by providing all the essential details including deposit tenure, instalment amount, payment mode, nominee etc.
4. Make your first deposit in cash or by using a cheque.
5. Submit the application form along with copies of the required documents to the branch officials.

How to Close Indian Bank RD Account?

Follow the below process to close the Indian Bank RD account:

1. Visit the Indian Bank branch with your RD account details.
2. Obtain the RD account closure form and fill in the required details on the form. 
3. 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.
4. Submit the form to the branch officials.

Benefits of Indian Bank RD Account

• RD account is a secure, risk-free investment option for conservative savers.
• You can invest at regular intervals and get interest rates similar to those of an FD without depositing a lump sum.
• RD account inculcates a habit of saving regularly and helps to secure a financial future.
• Indian Bank offers flexible tenure options for account holders ranging from 6 months to 10 years.
• Indian Bank offers a variable recurring deposit scheme, allowing you to choose the amount you want to deposit every month.
• You are also allowed to choose nominees or opt for loan facilities with your Indian Bank RD accounts.

Indian Bank RD Premature Withdrawal Rules 

Indian Bank offers premature withdrawal facilities on all of its different RD accounts. However, upon full or partial withdrawal, certain penalties are applicable based on how early you break your recurring deposit account. Here are the applicable rules:

• For deposits below Rs. 5 lakh, no penalty is applicable on the Indian Bank RD forclosure when your deposit remains for at least 181 days. 
• For deposits of Rs. 5 lakh and above, a 1% premature penalty is charged when the RD account is closed. 
• Certain deposits, including those of staff and ex-staff and deposits of government bodies, corporations, and non-profitable institutions, are exempt from foreclosure/premature withdrawal charges. 

By opening a recurring account with Indian Bank, you can save money consistently over a long time to reach your financial goals, whether short-term or long-term. Indian Bank RD interest rates are among the best among public sector banks, making it a lucrative option.