Indian Overseas Recurring Deposit Interest Rates
Indian Overseas Bank Recurring Deposit
A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount. It is often recommended for those who wish to save small amounts of money on a regular basis.
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 of booking of the Fixed Deposit.
Advantages to opening an RD account:
- Interest Rate earned is generally equal to that of an FD
- Safe and secure form of investment
- Secure from fluctuations and volatility
- Ideal for starters
- Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
- Can be opened with small minimum amount.
- Lump sum received at maturity, including the interest
- The rate of interest is higher as compared to an ordinary saving bank account
- Flexible tenures 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.
Indian Overseas Recurring Deposit
An RD in Indian Overseas 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 these installments to an Indian Overseas Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Key Features of Indian Overseas Bank RD Account
- Allows you to safely deposit small amount of money on a regular basis unlike that of an FD where you would be required to deposit the entire bulk amount at the time of booking of the account.
- Is a safe, low-risk form of investment.
- Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
- Flexible tenure – you can choose tenures which can range from a few months to several years depending on your financial goal
- Attractive interest rates: Offers a higher rate of interest than a savings bank account with a smaller ongoing investment,
- Quick liquidity options and access to your funds when you need it with nominal penalty charges.
Types of Recurring Deposits Offered by Indian Overseas Bank:
Regular Recurring Deposit:
- Minimum Opening Balance for Indian Overseas Bank RD account: Rs. 50 and in multiples of Rs. 5 thereof
- Period of RD: 6 months to 120 months
- Preferential interest rate for senior Citizens
- TDS on Interest is applicable
- Nomination facility available
- Premature Closure of RD Allowed
- Loan up to 90% on the principal and on the interest accrued.
Indian Overseas Recurring Deposit Interest Rates
Indian Overseas Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for an Indian Overseas Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Indian Overseas Bank RD interest rates including Indian Overseas Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in IOB, it is advisable to check with the bank directly.
Indian Overseas Bank recurring deposit interest rates 2015 – 2016
The current RD Interest rate ranges from 4% to 6% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and most up to date interest rates as they fluctuate on a regular basis.
Indian Overseas Bank Senior Citizens RD Interest Rates
Senior Citizens enjoy preferential rates, i.e., a certain percentage more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.
How to apply for an RD in Indian Overseas Bank:
You can visit your nearest IOB branch and have a bank representative help you with the process. Alternatively, you can call the IOB customer care and have a bank representative contact you with the details.
Eligibility for IOB Recurring Deposit:
The following are eligible to book an RD with Indian Overseas Bank:
Individual having a regular source of income, small trader, housewife, student or a rural saver, HUFs, minors etc.
Indian Overseas Bank Recurring Deposit Calculator:
You can make use of any trusty online RD Calculator to compute the interest and the maturity earned on your invested amount. Using an RD Calculator is easy—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 find out how much you need to save. You can try various amount and opt for the one that helps achieve your financial goal and suits your budget.
Indian Overseas Bank RD FAQs
What is the minimum and maximum amount required to open an RD with Indian Overseas Bank?
The minimum opening balance for a regular recurring deposit with Indian Overseas Bank is Rs. 50.
What is the minimum deposit period?
The minimum deposit tenure is 6 months and can go up to as high as 120 months depending on your goals and budget.
How do I apply for a regular recurring deposit?
If you are a new customer, you can start with opening a savings account, which can be linked with an RD account. For this, you will be required to visit your nearest IOB branch and have one opened.
Alternately, you can visit your nearest branch and submit the Deposit Account form.
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, PAN Card, ID Proofs
- Any other KYC documents as required by the bank