Indian Bank RD Interest Rates

Below are the latest details regarding this scheme, including its features, rate, and eligibility criteria.

Indian Bank RD Interest Rate 2023 Table

Disclaimer: RD Interest rates are subject to change with time. Policybazaar does not endorse, rate, or recommend any particular company or product. The investment risk in the investment portfolio is borne by the policyholder. 

For Senior Citizens (Aged 60 years & above) : The bank is currently offering a special RD interest rate of 0.50% for senior citizens on term deposits. For those who choose to deposit their money for a period of 5 to 10 years, an additional interest rate of 0.25% will be given, making the total interest rate for this deposit bucket 0.75%.

Features of Indian Bank RD Scheme 2023:

• A minimum deposit amount of only Rs.25 is required to open an account.

• The account tenure can range from 6 months to a year.

• Interest rates as high as 6.70% p.a. are available to customers with Indian Bank RD.

• Additional life insurance coverage is also provided.

• Any family member or spouse can receive the final maturity amount through a nomination facility imparted by the bank.

• You can open an RD account at your convenience by visiting the branch of Indian Bank closest to you.

Types of Indian Bank RD Accounts

1. Variable Recurring Deposit

   This scheme allows you to change the amount in the monthly installments at will. A minimum amount of Rs.25 is required to open such an account, while the maximum amount is Rs.1 lakh. The most significant advantage of this scheme is that there is no penalty imposed on the account owner in case the monthly deposits are not paid in time. 

2. Insured Recurring Deposit

   This RD scheme provides life insurance cover on top of the total interest earned on your investment. A minimum deposit amount of Rs.100 is required to open such an account for a tenure ranging from 3 to 5 years.

How to Open an RD Account with Indian Bank? 

For customers without any existing account with the Indian Bank, a new Indian Bank savings account is required. It is simple and quick to open a savings account, which is then linked to your RD account. A bank representative at your local Indian Bank branch can assist you with the procedures mentioned above. 

Tax Benefits of Owning an RD Account

If the interest earned in the RD account across all branches of Indian Bank exceeds Rs.40,000 for a financial year for a regular customer, the bank will waive the income tax at a source. For senior citizens, the limit is Rs.50,000. The former TDS applied was 10%. However, due to the pandemic, there has been a reduction in the TDS rate to 7.5%.

Note: It is recommended to use RD calculator to get the estimate of RD interest before making investment decision.
*Tax benefits are subject to changes in tax laws.

Eligibility Criteria to Open an Indian Bank RD

 The following can open an RD account with Indian Bank:

• Permanent residents of India

• Senior citizens

• Minors

• Hindu Undivided Families (HUFs)

Documentation Required for Opening an Indian Bank RD Account:

• Application form provided by the bank 

• Identity Proof (any)

• Address Proof (any)

• Two passport-size photographs of the applicant

• Copies of PAN Card or Form 60/61 (in case PAN Card is unavailable)

• Other documents (as and when required by the bank according to the applicant's profile)

Premature Withdrawal of RD 

Usually, a choice of premature withdrawal is provided to the customer, i.e. breaking the RD before it is fully mature. However, the initial interest might get hindered depending on how early the RD is broken from the actual maturity date. Your interest rate might get reduced. 

Indian Bank provides the option of premature withdrawal. But, in that case, the interest accumulated on the principal amount will differ (depending on the bank rules.) Partial withdrawal of money is not allowed.