Recurring deposit schemes are a wonderful way to build your savings over a period of time through regular monthly deposits. Not only do you save money but also earn interest on your deposits. Continue reading to see what RBL bank’s recurring deposit options have to offer.
RBL Bank RD Interest Rates for different Investment Periods
|Investment period||RD rates for regular deposit||RD rates for Senior Citizens|
|181 days to 240 days||7.15%||7.65%|
|241 days to 364 days||7.50%||8.00%|
|1 year to 1 year 364 days||7.75%||8.25%|
|2 years to 2 years 364 days||7.85%||8.35%|
|3 years to 4 years 364 days||7.70%||8.20%|
|5 years to 9 years 364 days||7.70%||8.20%|
|10 years to 20 years||7.70%||8.20%|
RBL Bank Recurring Deposit Interest Rates
- RD interest rates upto 7.85% are offered, with interest compounded quarterly. Interest on RD with RBL Bank is compounded quarterly.
- Senior citizens can avail RD rates upto 8.35%
RBL Bank Recurring Deposit: Special Features
- RBL bank RD schemes allow you to select the term and amount that he wishes to invest and earn guaranteed returns at applicable interest rates.
- Nomination facility is available to any family member or spouse can be nominated to receive the final amount
- The deposit tenure ranges from 6 months to 240 months.
- TDS deductions will be as per existing income tax rules at the time of RD account opening.
- Internet banking facility to for making deposits is available.
- You can open your RD account by visiting your nearest IDFC bank branch.
- Visit any RBL Bank branch to avail this service
- TDS deductions are subject to the existing income tax rules as at the time of opening the RD account
RBL Bank recurring deposit: Is it the best way to save?
Saving a specific amount of money every month can lead to a substantial amount for the emergency fund in the long term.Recurring deposit options can be availed to do so. However, they are not the best saving option if wealth creation is the objective. Let’s see you plan on saving for your retirement. A Recurring Deposit with 7.85% interest rate may not give you the returns needed to create a decent retirement fund. However, depositing the same amount in a Mutual Fund as SIP (Systematic Investment Plan) can help you create the kind of wealth you are aiming for.
The Benefits of Investing in SIPs
- A small amount of money that can be as low as Rs 500 has to be deposited by you every month or every quarter.
- On the basis of your budget and investment goal, your money will be invested in debt or equity funds. In the past decade, Equity Linked mutual funds have performed well in the market with a return of 12-22%. This will give significantly higher returns than recurring deposits.
- There is no penalty on money withdrawal from SIP account. This means that SIPs have higher liquidity when compared to recurring deposits that levy a penalty on premature withdrawal.
RBL Bank: Premature withdrawal rules
- In case the account is closed prematurely a penalty might be levied based on the scheme chosen and bank’s discretion. Partial withdrawal of money is not allowed.
Tax benefits on RBL Bank
All recurring deposits, including RBL bank recurring deposit, are taxable under the Income Tax Act 1961. The money that is invested in RD will be included in your yearly income and a TDS ( Tax Deducted at Source) of 10% is applicable on the interest earned ( If it is more than (if it is more than RS. 10,000 per year).To save TDS on your RD gains, you can fill either Form 15G or Form 15H.
Conditions for submitting Form 15G:
- You are an individual or HUF
- You must be a Resident Indian
- You should be less than 60 years old
- Tax calculated on your Total Income is nil
- The total interest income for the year is less than the minimum exemption limit for that year, which is Rs 2,50,000 for the financial year 2016-17
Documents Required to Open RBL bank RD Account
Proof of identity
- PAN card
- Voter ID card
- Driving License
- Government ID card
- Photo ration card
- Senior citizen ID card
- Telephone bill
- Electricity bill
- Bank statement with cheque
- Certificate /ID card issued by the post office.