IDBI Recurring Deposit Interest Rates

IDBI Bank Recurring Deposit

IDBI Bank Recurring Deposit

A Recurring Deposit (RD) is a safe and convenient investment that allows you to deposit a fixed amount on a regular basis with your bank, and earn interest income on it. It is similar to a Fixed Deposit (FD) where you enjoy a higher rate of interest than a savings account for the same principal amount.

If it is similar to a fixed deposit in terms of interest rate, then what is the difference between the two? The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.

Advantages to opening an RD account:

  • Ideal for people who cannot deposit a large initial lump sum, but want to deposit smaller amounts on a monthly basis.
  • An RD account can be opened with small minimum amount.
  • Lump sum received at maturity, along with the interest accrued
  • The rate of interest is higher as compared to an ordinary saving bank account
  • Interest Rate earned is generally equal to that of an FD
  • Flexible tenure range to suit the budget of the individual
  • Recurring Deposit Interest rate is fixed so you are assured of a fixed return
  • Loan / overdraft facility available with some banks.
  • Safe and secure investment

Disadvantages:

  • The interest earned might be lower than other, riskier, forms of investment, say investing in mutual funds, etc. But the money is protected from market fluctuations.
  • Penalty charges might apply if you wish to withdraw the amount prematurely.
  • Withdrawing prematurely also affects the interest payout.

IDBI Recurring Deposit

An RD in IDBI Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make fixed monthly installments to a IDBI Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.

Features of IDBI RD Account

  • IDBI Recurring deposit helps you to add your savings at your complete convenience. Flexible tenure – you can choose tenures which can range from 1 year to 10 years.
  • The amount as decided by you will be deducted every month from your savings account.
  • Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
  • Is a safe, low-risk form of investment.
  • Secure from fluctuations and market risks.

Types of Recurring Deposits Offered by IDBI Bank:

Regular Recurring Deposit:

  • Minimum Opening Balance for IDBI RD account: Rs. 100
  • Maximum amount: < Rs. 1 crore
  • Preferential interest rate for senior citizens
  • Deposit period: 1 year to 10 years
  • Nomination facility
  • Premature Closure of RD Allowed
  • Interest compounded every quarter
  • No Tax deducted at source on these deposits
  • No charges for executing your standing instructions.
  • Easy liquidity options; closure before maturity allowed subject to terms and conditions

Documents Required for IDBI Bank RD Account:

  • Application in the Bank's prescribed form.
  • Copy of PAN Card / Form 60 or 61 (if customer does not have PAN Card).
  • Photograph of Depositor/s (2 copies).
  • Proof of Identity and address as per KYC Norms.
  • Any other related documents as applicable to proprietor ship concern, Partnership Firm, Company, HUF etc.

IDBI Recurring Deposit Interest Rates

IDBI Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a IDBI Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of IDBI Bank RD interest rates including IDBI Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in IDBI, it is advisable to check with the bank directly.

IDBI bank recurring deposit interest rates 2015 – 2016

Tenure Interest Rate (% p.a.)
1years to < 2years 7.15
2 years to < 3 years 7.15
3 years to < 5 years 7.15
5 years 7.15
> 5years - 7years 7.00
>7 years - 10 years 7.00

IDBI Bank Senior Citizen RD Interest Rates

Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for a normal citizen of India.

Tenure Senior Citizen Interest Rate (% p.a.)
1years to < 2years 7.65
2 years to < 3 years 7.65
3 years to < 5 years 7.65
5 years 7.65
> 5years - 7years 7.50
>7 years - 10 years 7.50

NRO Recurring deposits: (Effective November 21, 2016)

Tenor Interest Rate (% p.a.)
1year to < 2 years 7.15
2 years to < 3 years 7.15
3 years to < 5 years 7.15
5 years 7.15
> 5 years - 7 years 7.00
>7 years - 10 years 7.00

NRE Recurring deposits: (Effective November 21, 2016)

Tenor Interest Rate (% p.a.)
1year to < 2 years 7.15
2 years to < 3 years 7.15
3 years to < 5 years 7.15
5 years 7.15

IDBI Bank Recurring Deposit Calculator:

You can make use of any reliable online RD Calculator to compute the interest and the maturity earned on your invested amount. Using an RD Calculator is easy—all you need to do is enter the instalment amount you want to invest monthly, the period, the interest rate, method of compounding (monthly, quarterly, half-yearly or annually) and the calculator will provide the maturity amount that you get at the time of maturity of the Recurring Deposit. Using an RD calculator helps you calculate how much you need to save monthly to achieve your financial goal.

IDBI Bank RD FAQs

What is the minimum amount required to open an RD with IDBI?

The minimum opening balance for a regular recurring deposit with IDBI Bank is Rs. 100.

What is the minimum and maximum deposit period?

The minimum deposit tenure is 1 year and the maximum period is 10 years.

How do I apply for a regular recurring deposit?

You can visit your nearest branch and submit the Deposit Account form. Alternatively, you can call the customer care number for help with your query.

What is the documentation required to open an RD account?

You will require the following documents:

  • Filled-in application form
  • Passport size photograph
  • Proof of residence
  • Proof of identity
  • PAN Card
  • Copy of PAN Card / Form 60 or 61 (if customer does not have PAN Card).
  • Introduction letter from an existing customer of IDBI Bank (if required)
  • Any other KYC documents as required by the bank

I wish to discontinue my RD. Will it affect the interest payout?

No Interest is applicable if the Recurring Deposit is discontinued before three months. If RD is discontinued before one year but kept for at least 3 months with the Bank, then Interest rate applicable for Savings Bank is applicable.

I am a senior citizen. What are the consequences of premature closure of RD on the extra interest?

In case of premature closure of Recurring Deposit by a senior citizen, the additional 0.50% interest as applicable to seniors shall be made available only if the RD has been with the bank for complete 12 months from the date of the 1st installment.