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IDFC RD Interest Rate – IDFC First Bank 2024

To create the habit of regular savings among customers, IDFC First Bank offers a wide array of recurring deposit schemes. IDFC RD interest rate ranges from 4.50% to 7.75% for general citizens while senior citizens get an additional 0.50% on the applicable rates. 

So, if you are thinking of opening an RD account at IDFC First Bank, keep reading this blog. We will cover the latest RD interest rates, eligibility criteria, documents required and more. 

Minimum Investment ₹100 per month 
Tenure6 to 120 months
RD Interest Rates for General Citizens 4.50% to 7.75%
RD Interest Rates for Senior Citizens 5.00% to 8.25%
Loan Against IDFC First Bank RDNot Available
TDS on RDAvailable 

IDFC First Bank RD Interest Rates 2023

Find the applicable IDFC RD interest rate for 2023 in the table below:

Investment TenureGeneral RatesSenior Citizen Rates
6 months4.50%5.00%
9 months5.75%6.25%
12 months6.50%7.00%
15 months7.50%8.00%
18 months7.75%8.25%
21 months7.75%8.25%
24 months7.75%8.25%
27 months7.25%7.75%
36 months7.00%7.50%
39 months7.00%7.50%
48 months7.00%7.50%
60 months7.00%7.50%
90 months7.00%7.50%
120 months7.00%7.50%

Note – The IDFC RD interest rates mentioned in the table are as per data collected on 5th December 2023. They may change without any prior notice. 

Features of IDFC First Bank Recurring Deposit Interest Rates 2023 

Here are some of the features of IDFC First Bank RD accounts and their interest rates. 

  1. No penalties for missing RD instalments 
  2. Gain high returns with IDFC RD interest rates ranging from 4.50% to 7.75%. 
  3. Start investing with an amount as low as ₹100
  4. Flexible investment tenures ranging from 6 months to 120 months 
  5. No documents are required to avail the attractive interest rates if you have a savings account at IDFC First Bank 
  6. Offers an extra 0.50% interest over the applicable rates to senior citizens 

How to Open an RD Account in IDFC First Bank Online?

To open an IDFC RD account online, follow the steps given below:

  • Step 1: Download the IDFC First Bank app.
  • Step 2: Navigate to the ‘Open RD account’ option and click on it. 
  • Step 3: Choose the account from where the RD investment amount will be transferred. 
  • Step 4: Enter the amount you wish to deposit each month.  
  • Step 5: Choose your investment tenure. Under ‘Best Plans’, you can select the suitable tenure offering the highest IDFC RD interest rates. Alternatively, you can browse all the available tenures under ‘All Plans’.  
  • Step 6 – Click on ‘Create RD’. 

The first RD instalment will be deducted from your savings account. Additionally, the bank will send a receipt for your RD to your registered email ID.  

How to Open an RD Account in IDFC First Bank Offline?

Here’s how you can avail the attractive IDFC First Bank RD rates offline. 

  • Step 1: Visit your nearest IDFC First Bank branch. 
  • Step 2: Collect a recurring deposit application form. 
  • Step 3: Enter all the RD details like instalment amount, tenure and nomination details, along with your personal information.  
  • Step 4: Specify your bank account details. 
  • Step 5: Go through all the terms and conditions and sign the application form. 
  • Step 6: Submit the form. 

The bank will process your RD application and the first instalment will be deducted from your bank account. 

How to Calculate RD Interest Rates in IDFC First Bank?

With your chosen tenure, the applicable IDFC RD interest rate and monthly investment amount, you can easily calculate the maturity amount. Now, there are two ways of doing so:

Recurring Deposit Calculation Formula

A = P x (1 + R/n)^nt

Here, 

A = Maturity Amount

P = Principal Amount

R = Rate of interest

N = Number of compoundings within a year. 

T = Time period (in months)

Suppose, you decide to open an RD account with a monthly instalment of ₹10,000, at an interest rate of 7.00% for 4 years, compounded every quarter. 

In this case, 

P = ₹10,000

R = 7.00% 

N = 4 (as compoundings occur 4 times in a year)

T = 48 months (4 years)

Therefore, applying the formula:

A = 10000 x (1 + 7/4)^4×48 = ₹5,54,811

Recurring Deposit Calculator

To calculate the maturity amount for multiple tenures, using the recurring deposit formula can be a bit tedious. Under such circumstances, the IDFC First Bank Recurring calculator is what you need. 

Here is how you can use it:

  • Step 1: Search for IDFC First Bank RD calculator.
  • Step 2: Specify whether you are a regular or senior citizen. The applicable IDFC First Bank RD interest rate will change accordingly. 
  • Step 3: Select your investment tenure. 
  • Step 4: Enter the deposit amount. 

The calculator will automatically show your RD maturity date, maturity value and aggregate interest amount. What’s more, you can directly apply for a recurring deposit scheme by clicking on ‘Apply Now’.   

Eligibility Criteria to Start an RD Account with IDFC First Bank

Any individual having a savings account or current account at IDFC First Bank is eligible to open an RD account. This rule is also applicable to Non-Resident Indians (NRIs). 

However, if an Indian resident is a joint holder in an NRE/NRO RD account, then the mode of operation can only be ‘Former or Survivor’. Resident Indians are not allowed to be the primary holders of NRE/NRO RD accounts.  

Documents Required for Starting an RD account in IDFC First Bank

For existing customers of IDFC First Bank, no additional documents are required to open an RD account. 

However, if you do not have an account at this bank, you need to open a savings account first. Here are the documents that you need to provide in order to reap benefits from IDFC Bank RD rates. 

  1. Aadhaar card/Passport/Voter ID card/Driving License 
  2. PAN card
  3. Passport-size photographs

Types of IDFC First Bank RD Accounts

Here are the different types of IDFC recurring deposit that you can avail in 2023. 

  1. Domestic RD Account

A domestic RD Account is the standard type of recurring deposit offered by IDFC Bank. It is an ideal option for resident Indians, helping them achieve short and medium-term saving goals.   

  • Minimum Deposit: ₹1,000
  • Maximum Deposit: ₹75,000
  • Tenure: 6 months to 120 months
  • Interest Rate: 4.50% to 7.75% 
  • Eligibility: Resident individuals 
  1. NRE RD Account

NRE or Non-Resident External RD account is an excellent way for NRIs to invest their foreign earnings in a fixed-income instrument and earn assured interest. 

  • Minimum Deposit: ₹1,000
  • Maximum Deposit: ₹75,000
  • Tenure: 12 months to 120 months
  • Interest Rate: 6.50% to 7.75%
  • Eligibility: Non-resident individuals 
  1. NRO RD Accounts 

Non-Resident Ordinary RD account is another popular type of recurring deposit offered by IDFC Bank, highly popular among NRIs. A key interesting feature of this RD account is that it is subject to applicable Tax Deduction at Source (TDS). 

  • Minimum Deposit: ₹1,000
  • Maximum Deposit: ₹75,000
  • Tenure: 6 months to 120 months
  • Interest Rate: 4.50% to 7.75%
  • Eligibility: Non-resident individuals 

IDFC First Bank RD Penalty

IDFC First Bank does not charge any penalty to account holders for missing their monthly RD payments. 

Each customer receives a grace period of 5 days to pay their missed instalments. After 3 instances of non-payment, the bank will close the RD account and the funds will be transferred to the individual’s savings account. 

IDFC First Bank RD Premature Withdrawal Rules

The premature withdrawal rules for IDFC First Bank RD accounts are as follows:

  1. In case of premature withdrawals within 30 days, no interest is payable to the customer and the principal amount is credited to his/her savings account. This is applicable for domestic and NRO RDs. For NRE RDs, this threshold is extended to 365 days.   
  2. If withdrawals are made after 30 days but before 6 months, the applicable interest card rate for 30 to 45 days will apply to account holders. This rule does not apply to NRE RDs. 
  3. In case of withdrawals on or after 6 months, the applicable card charges will be based on the period of time for which the deposit has remained with the bank. 

How to Close IDFC First Bank RD Account Online?

To close IDFC First Bank RD account online, follow the steps given below:

  • Step 1: Open the IDFC Bank app. 
  • Step 2: Scroll down to ‘Deposits’ and click on ‘View All Deposits’.  
  • Step 3: Tap on ‘Recurring Deposits’ and select the RD account which you wish to close. 
  • Step 4: Click on ‘Close RD’.

The amount will be transferred to your savings account. 

How to Close IDFC First Bank RD Account Offline?

Now, if you wish to close your IDFC RD account offline, here are the steps you can follow:

  • Step 1: Visit your nearest IDFC bank branch. 
  • Step 2: Ask the bank officials for an RD account closure form. 
  • Step 3: Fill in all the details. 
  • Step 4: Submit the form. 

Upon successful processing of your RD account closure form, the bank will transfer your RD investment to your savings account. 

TDS on IDFC First Bank RD

Tax Deducted at Source (TDS) at 10% shall be applicable if the interest income from your recurring deposit exceeds ₹10,000 within a financial year.   

Final Word

As you now know the current IDFC RD interest rates, you can start a recurring deposit which aligns with your financial goals. However, interest rates are dynamic and can change without any prior notice. Thus, it is essential that you check the latest rates before starting your RD.   

FAQs

How do I pay for missed RD instalments?

If you miss out on paying your RD instalments due to a low account balance, you can deposit the required amount to your savings accounts via net banking or by visiting the nearest branch.   

Are partial withdrawals allowed for recurring deposits?

No, partial withdrawals are not allowed for RD accounts. You need to fully close your account to access your deposited funds. 

Can I break my RD at any time?

Yes, you can break your RD at any point in time before maturity. However, penalties may be applicable in the form of reduced interest rates.  

Is interest from recurring deposits taxable?

Yes, interest from recurring deposit schemes adds to your yearly income. Thus, it is applicable for taxation as per your applicable income tax slab. 

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