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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.
The interest rates given below are effective from 5 November 2020.
|Deposit Tenure||Interest Rates for General Customers (% p.a.)*||Interest Rates for Senior Citizens (% p.a.)*|
|181 days to 269 days||4||4.5|
|9 months to 364 days||4.4||4.9|
|1 year 1 day to 1 year 364 days||4.95||5.45|
|2 years to 2 years 364 days||5.10||5.60|
|3 years to 10 years||5.25||5.75|
*The interest rates are subject to change from time to time.
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.
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.
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.
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.
Interest will be calculated and paid on the minimum balance between the 10th and the last day of the month.
No. The bank doesn’t levy any penalty for delayed instalment payments regarding the Variable RD scheme.
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.