• Recurring Deposit
  • Indian Bank RD Interest Rates
Indian Bank RD Interest Rates

Indian Bank RD Interest Rates

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Indian Bank RD Interest Rates Feb 2024

TenureNormal Citizen RD RateSenior Citizen RD Rate
3 Months to 6 Months3.50%4.00%
6 Months to 9 Months3.85%4.35%
9 Months to 1 Year4.50%5.00%
1 Year to 2 Years6.30%6.80%
2 Years to 3 Years6.70%7.20%
3 Years to 5 Years6.25%6.75%
5 Years to 10 Years6.10%6.60%

Note: All interest rates shown above are as on 1st November 2023

Indian Bank RD Scheme Details

Tenure
6 Months - Above 5 Years
Public Interest Rates
3.50% to 6.70%
Senior Citizen Interest Rates
4.00% to 7.20%
Minimum Deposit Amount
Rs. 100
Premature Withdrawal
1%
Highest Rates for Public
6.70%
Highest Rates for Senior Citizen
7.20%

Indian Bank Returns Based on Investment Amount

Investment AmountFor 3 years with interest of 6.25%For 5 years with interest of 6.10%
₹ 50,0001,51,5602,53,819
₹ 1 lakh3,03,1205,07,638
₹ 2 lakh6,06,23910,15,276
₹ 5 lakh15,15,59825,38,190
₹ 10 lakh30,31,19650,76,379

Compare Indian Bank vs Punjab National Bank Recurring Deposit

vs
Punjab National Bank
Indian Bank
Indian Bank
Maturity Amount3,03,1203,02,621
Total Investment Amount3,00,0003,00,000
Total Interest Gained3,1202,621

Compare RD Interest Rates of Other Banks

Bank NameRD Interest Rates
Punjab National Bank
Punjab National Bank
4.40% to 6.50%
City Union Bank
City Union Bank
5.75% to 6.50%
BOI Bank
BOI Bank
4.50% to 6.50%
Canara Bank
Canara Bank
5.25% to 6.90%
BOB Bank
BOB Bank
4.50% to 7.05%
Central Bank of India
Central Bank of India
4.50% to 6.75%
Karur Vysya Bank
Karur Vysya Bank
6.00% to 7.00%
Union Bank of India
Union Bank of India
4.30% to 6.70%
Tamilnad Mercantile Bank
Tamilnad Mercantile Bank
5.75% to 7.00%
Karnataka Bank
Karnataka Bank
5.25% to 7.00%
Dhanlaxmi Bank
Dhanlaxmi Bank
6.50% to 6.75%
South Indian Bank
South Indian Bank
4.50% to 6.50%
Federal Bank
Federal Bank
5.00% to 7.30%
Bank of Maharashtra
Bank of Maharashtra
4.50% to 6.00%
Indian Overseas Bank
Indian Overseas Bank
4.50% to 6.80%
UCO Bank
UCO Bank
4.50% to 6.50%
RBL Bank
RBL Bank
4.75% to 7.50%
State Bank of India
State Bank of India
4.50% to 7.00%
IDBI Bank
IDBI Bank
4.50% to 6.80%
Axis Bank
Axis Bank
4.75% to 7.10%
HDFC Bank
HDFC Bank
4.50% to 7.10%
ICICI Bank
ICICI Bank
4.75% to 7.00%
Indusind Bank
Indusind Bank
4.75% to 7.50%
Kotak Mahindra Bank
Kotak Mahindra Bank
4.00% to 7.10%
Yes Bank
Yes Bank
5.00% to 7.75%
Bandhan Bank
Bandhan Bank
4.50% to 7.25%
IDFC First Bank
IDFC First Bank
5.00% to 7.50%
Equitas Small Finance Bank
Equitas Small Finance Bank
7.25% to 8.20%
Capital Small Finance Bank
Capital Small Finance Bank
4.75% to 7.15%
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank
4.75% to 7.50%
Fincare Small Finance Bank
Fincare Small Finance Bank
5.75% to 8.25%
ESAF Small Finance Bank
ESAF Small Finance Bank
5.25% to 8.50%
North East Small Finance Bank
North East Small Finance Bank
4.00% to 7.50%
Suryoday Small Finance Bank
Suryoday Small Finance Bank
5.00% to 8.50%
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank
6.50% to 8.00%
Jana Small Finance Bank
Jana Small Finance Bank
4.00% to 8.50%
DBS Bank
DBS Bank
3.00% to 7.50%
Post Office
Post Office
6.90% to 7.50%

Frequently Asked Questions

What is the current interest rate of RD in Indian Bank?

The current highest Indian Bank RD rates for general citizen range from 3.50% to 6.70% and for senior citizen it ranges from 4.00% to 7.20% today 2024-02-26

How to open rd account in Indian Bank?

Indian Bank RD account can be opened with a minimum deposit of Rs. 100 with tenure ranging 6 Months - Above 5 Years. Indian Bank recurring deposit account can be opened online or by visiting Indian Bank branches with any ID proof like PAN card, Aadhar card, voter ID, or driving licence etc.

How to close rd in Indian Bank?

You can close your RD a/c online through "Close A/c" tab or by visiting the branch, this may cost you a penalty. The current premature closer penalty in Indian Bank RD is 1%.

How to calculate maturity and interest in Indian Bank recurring deposit ?

The maturity amount in Indian Bank recurring deposit account can be calculated by using A = P x(1 + R / N) ^ (NT) formula.
Where:
A: Maturity Amount
P: Recurring Deposit Amount
N: Number of times the interest is compounded
R: annual interest rate
T: Tenure
Example:
If you open recurring deposit account at the Indian Bank for 5 years and planed to invest INR 50,000.The current Indian Bank RD interest rate for 5 year is 6.10%.So using the above formula the maturity amount will be - Rs. 35,12,392.

What is Indian Bank RD interest rates for 1 year in 2024 ?

The Indian Bank recurring deposit for 12 months or 1 year is 6.80% for senior citizen and 6.30% for others.

Calculate Indian Bank Returns

36
3.2 %

1,00,000

Total Investment

0

Wealth Gained

0

Maturity Amount

Invest in SIP to earn ₹37,83,253 moreExplore Best SIP Plans

About Indian Bank Recurring Deposit

Indian Bank recurring deposits RD allow investors to invest in small amounts regularly for a fixed tenure. The Indian Bank recurring deposit rate ranges between 5.5% to 6.70% p.a. for regular citizens. For senior citizens, the RD interest rates range between 6% to 7.20% p.a. Also, the Indian Bank recurring deposit interest rates are higher than their saving account rates.

Indian Bank RDs have interest rates that range between 5.5% to 6.70% p.a.. for a tenure of 6 months to above 5 years. Also, for senior citizens, the interest rates range between 6% to 7.20% p.a.. Indian Bank offers additional interest rates to senior citizens on their RD investments. Also, the Indian Bank recurring deposit interest rates are higher than their saving account rates. Indian Bank pays interest on the minimum balance between the 10th day and last day of the month. Furthermore, one can estimate the returns from Indian Bank RDs using an Indian Bank RD Calculator. Also, Indian Bank RD interest rates are dependent on the age of the investor, tenure of the investment, RBI policies and current economic condition in the country.
Furthermore, interest income from Indian Bank RDs is taxable as per the individual investor’s income tax slab rates. Investors have to file the interest income under the head ‘Income from other Sources’ while filing their income tax returns. Moreover, Indian Bank deducts a TDS of 10% if the interest income exceeds INR 40,000 (INR 50,000 for senior citizens). Also, Indian Bank cuts 20% if the investor doesn’t submit PAN Card details.

Indian Bank RD Features

Following are the key features of Indian bank recurring deposits:

  • Tenure: The Indian Bank recurring deposit tenure ranges between 6 months to 120 months.
  • Minimum and Maximum Deposit Amount: The minimum amount of investment in Indian bank recurring deposits RD is INR 100 and in its multiples thereafter. Also, the scheme has no limit on the maximum investment amount.
  • Tax and TDS: Indian bank RD schemes do not qualify for tax saving. The interest income from Indian bank RDs is taxable as per investor’s income tax slab rates. Moreover, the Indian bank deducts a TDS of 10% if the interest income per annum exceeds INR 40,000 (INR 50,000 for senior citizens). The 10% TDS rate is applicable when the PAN details are submitted, else the bank charges TDS at 20%.
    Also, one can determine whether Indian bank recurring deposit interest income is above or below the TDS threshold limit using the RD calculator. Furthermore, one can estimate income tax liability with the help of Scripbox Income Tax Calculator.
  • Premature withdrawal: The Indian bank allows investors to prematurely withdraw their recurring deposits. However, it attracts a penalty.
  • Nomination Facility: Depositors can nominate beneficiaries for their Indian Bank RDs.
  • Convenience: Opening and managing the recurring deposit investments is easy and also convenient through the Indian Bank’s online portal.
  • Loan against RD: The Indian bank allows investors to take a loan against recurring deposits. Furthermore, this enables them to meet their liquidity requirements. Moreover, the hassle of applying for a new loan is eliminated.
    Investors can take loans such as home loans (loan against property), motor loans, education loans, etc., against Indian Bank recurring deposits. Also, individuals can compute their loan EMI using the loan EMI calculator. Furthermore, the loan EMI calculator works as a home loan calculator, car loan calculator, and personal loan EMI calculator. Moreover, the investor can use the EMI calculator for comparing various scenarios by changing the variables such as interest rate.

Types of Indian Bank Deposit Schemes

Indian offers the following recurring deposit schemes:

Recurring Deposit

It is a regular monthly savings scheme that has the capability to grow into a large sum. This helps investors in meeting their financial goals and also needs at the end of the investment tenure.

  • Tenure: 6 months to 10 years (in multiples of 3 months)
  • Minimum Deposit Amount: INR 100 and in its multiples thereafter
  • Maximum Deposit Amount: No limit. However, no single deposit is allowed in a day for more than INR 2 crore, within the overall limit of INR 10 crore tagged to a single CIF.
  • Nomination Facility: Available
  • Tax Deducted at Source: Applicable
  • Loan Facility: Available
  • Premature closure: Available, however, attracts a penalty.

Variable Recurring Deposit

The variable recurring deposit scheme comes with the option of varying monthly instalments.

  • Tenure: 36 months
  • Initial Deposit Amount: INR 500 and in multiples of INR 100 thereafter, up to a maximum of INR 1,00,000.
  • Maximum Deposit Amount: INR 10,00,000 per month.
  • Nomination Facility: Available
  • Tax Deducted at Source: Applicable
  • Loan Facility: Available
  • Premature closure: Available, however, attracts a penalty.
  • Delayed instalments: No penalty for delay in instalments

Indian Bank RD Account Eligibility and Documents Required

To be able to open an Indian Bank RD account, one has to be eligible. Following is the eligibility for investing in Indian Bank RD:

  • Resident individuals, including minors
  • Non-resident individuals,
  • HUFs

Documents required

Following are the documents required to invest in Indian Bank RDs:

  • Identity proof – Driving License, Voter ID, Aadhar Card, PAN Card, Senior Citizen Card, and any Government ID card.
  • Residence proof – Passport, Utility Bills, Bank statement with cheque, and the certificate is given by Post Office.

Tax Liabilities on Indian Bank Recurring Deposit

Investment in Indian Bank RDs is not eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Moreover, the Indian RD interest income is taxable as per the investor’s income tax slab rates. Furthermore, investors of Indian Bank RD have to show their interest income under the head ‘Income from Other Sources’.

Also, the interest income is subject to TDS. The Indian Bank cuts TDS based on whether the investor has disclosed the PAN details or not.

If the investor submits the PAN Card details to Indian Bank, then the applicable TDS rate is10%. Also, Indian Bank cuts TDS if the interest income exceeds INR 40,000 for regular citizens and INR 50,000 for senior citizens.

If the investor doesn’t submit the PAN Card details, then the applicable TDS rate is 20%. Also, Indian Bank cuts TDS if the interest income exceeds INR 40,000 for regular citizens and INR 50,000 for senior citizens.

Requirements of Indian Bank RD Scheme

  • Deposit and account: One can open an Indian Bank RD account with a minimum investment of INR 5. Also, there is no upper limit for Indian Bank RD. Furthermore, for Indian Bank variable recurring deposit schemes, the bank will not charge any penalty if the instalment payments are delayed.
  • Withdrawal: Indian Bank allows investors to prematurely withdraw their RD investments. For deposits (less than INR 5 lakhs) held for a tenure of 181 days, the bank will not charge a penalty. However, if the deposits are held for less than 181 days, then the bank will charge a penalty of 1% on the interest amount. Also, for all deposits above INR 5 lakhs, the bank will charge a penalty of 1% on the interest if the investment is prematurely withdrawn.
  • Nomination: Indian Bank allows investors in RD to nominate a beneficiary from the family to receive the final amount.

Conclusion

Indian Bank RDs are considered as a good investment for investors who want to save a small amount of money regularly. Through Indian Bank RDs, investors can invest monthly in the scheme. Since Indian RD scheme guarantees income at the time of maturity, it is a low-risk investment. Hence investors who are looking for guaranteed returns form their investment, can invest in Indian Bank recurring deposits. However, they have to take into consideration the tax that they have to pay on the interest income from Indian Bank RDs.

Frequently Asked Questions

What are the limits on the minimum and maximum deposits?

Yes, Indian Bank recurring deposit account requires a minimum deposit amount of INR 100 per month, and also there is no maximum limit on the deposit amount. 

Can I open a recurring deposit account for a minor?

Yes, a minor can open Indian Bank recurring deposit account, however under the guardianship of their parents or legal guardian.

How to apply for Indian Bank RD?

One can open an Indian Bank recurring deposit account through offline and also online modes. For online mode, one has to visit the Indian Bank website. And for offline mode, one has to visit the nearest branch of Indian Bank.
To be able to invest in Indian Bank RD, one needs to have the following valid documents. For identity proof, one needs to have the following: a driving license, voter ID, Aadhar card, PAN card, senior citizen card, and any Government ID card. For residence proof, one needs to have the following: a passport, utility bills, bank statement with cheque, and certificate given by Post Office.

Is it possible to renew an RD account?

No, it is not possible to renew an Indian Bank RD account.

Resources

  1. Indian Bank Fixed Deposit
  2. Indian Bank FD Calculator
  3. Indian Bank Savings Account