Indian Bank RD Interest Rates – How to Open RD Account?

Indian Bank offers the best RD schemes (Recurring Deposit) for first-time investors. Both general and senior citizens can avail Indian Bank RD rates for long-term investments. The whole concept of RD investment involves saving a fixed amount every month for a predetermined tenure. Most investors use RD as a goal-based savings tool. 

Indian Bank RD Interest Rates 2024

For those looking for a safe and secure investment choice to diversify their portfolio, the Indian Bank Recurring Deposit is an attractive option. Furthermore, Indian Bank RD rates rise for senior citizens, just like they do for the majority of other banks.

Have a glance at the below-mentioned table to learn about the Indian Bank RD interest rates in 2023:

Note: The above-mentioned RD interest rates of Indian Bank are for deposits less than Rs. 2 crore.

Indian Bank Recurring Deposit Interest Rates Features

It is safe to open an Indian Bank account as it is a low-risk form of investment. Below are some of the salient features of Indian Bank RD rates.

1. You can open an account with a minimal deposit of Rs 100 per month.
2. Indian Bank offers flexible tenure options ranging from 6 months to 10 years.
3. You will get higher interest rates with smaller ongoing deposits.
4. Senior citizens get an additional rate of interest of 0.50% per annum.
5. An additional 0.25% p.a. Interest is offered to senior citizens above 60 years for deposit tenures of above 5 years.
6. Indian Bank offers nomination and loan facilities to their customers.
7. In some situations, they allow premature withdrawals.

How to Open an RD Account in Indian Bank Online?

You can open an Indian Bank RD account either offline or online. Here, we have given a step-by-step guide on how to open an RD account in the Indian Bank online.

• Step 1- Visit https://www.indianbank.net.in/ and click on ‘LOGIN for NET BANKING’.
• Step 2- Enter your User ID (CIR ID) and click on ‘Login’.
• Step 3- Again enter your User ID and password and click on the ‘Login’ option.
• Step 4- Click on the ‘Online Term Deposit’ option from the ‘My Account’ drop-down box.
• Step 5- Click on the ‘e-TDA Opening’ option from the drop-down menu.
• Step 6- After reading the given terms and conditions, click on the ‘I Agree’ button.
• Step 7- Fill out the required details like account type, deposit term and amount.
• Step 8- Enter the transaction password and click on ‘Next’.

That’s it! After this whole process, your RD account will be opened in Indian Bank.

How to Open an RD Account in Indian Bank Offline?

Read on to the below-listed steps to learn how to open an Indian Bank RD account offline.

• Step 1- Visit your nearest branch of Indian Bank and collect the RD account opening form.
• Step 2- Fill out the required details like name, age, mode of holding, phone number, address, deposit amount, and RD tenure, nominee name and sign the form.
• Step 3- You have to submit the necessary documents like ID proof, PAN, passport size photo, address proof, etc along with a filled form.
• Step 4- You need to make the first deposit either by cash, net banking or cheque.

Lastly, bank officials will check your form and documents and open an RD account. After opening the account, the bank will provide you with your RD account number and important documents.

How to Calculate RD Interest Rates in the  Indian Bank?

The amount of interest in the Indian Bank RD account is calculated on a compounding basis, where interest compounds every quarter. For example, if you open an account on 15^th September 2023, your interest amount will be compounded on 15^th December, 15^th March, 15^th June and so on annually till your RD account matures.

There are two ways you can calculate your Indian Bank RD rates. Below, we have explained both ways in detail.

RD Calculation Formula

We can manually calculate 

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

In this formula, the above-stated letters denote the following:

• A – Maturity value
• P- Monthly sum of your deposit
• r- Rate of interest
• n- Number of times interest is compounded
• t – Tenure of investment

Refer to the below-shown calculation as an example. 

Supposedly, Tina has opened an Indian Bank recurring deposit account. She deposited Rs. 1,000 p.m for 36 months. Therefore, her rate of interest will be 5.65% p.a. annually. Now, let’s calculate as per the standard RD formula mentioned earlier.

• P = Rs. 1,000
• r = 0.4708 
• n = 4 (12)

Henceforth,

A = Rs. 1000 x (1+0.4708/48) ^ 48 x 36

= Rs. 39,299

Interest = A – P = Rs. 3,299

Indian Bank RD Calculator

Most people use an RD calculator instead of manual calculation as it provides accurate results and is easy to use. Read below to learn more about how to use an RD calculator to find out Indian Bank RD rates.

• Step 1- Search for ‘Indian Bank RD Calculator’ and you will get various platforms offering the calculator.
• Step 2- Select your monthly investment on the calculator tab.
• Step 3- Select the interest rate (per annum) and tenure.

That’s it! The results will be automatically shown in the calculator tab.

Indian Bank RD Account Eligibility Criteria

If you are one of the following then you can be eligible for opening an RD account and get steady Indian Bank RD rates.

1. Indian resident
2. Partnership firms
3. Companies/members of a  Hindu Undivided Family (HUF)
4. Charitable trust
5. Minors
6. Educational institutions
7. Proprietorship
8. Commercial organisations

Documents Required for Indian Bank RD Account

You need to keep all the below-listed documents ready before you open an Indian Bank RD account. Along with the application form, you need to submit or upload all the documents to the bank or online portal respectively.

Identity Proof 

1. 2 Photographs of Depositor
2. Voter ID card
3. Aadhaar card 
4. PAN card 
5. Form 60 or 61 (If you do not have a PAN card)

Address Proof

1. Valid passport 
2. Driving licence (If any)
3. Bank statement (not older than 3 months) 
4. Passbook (not older than 3 months) 
5. Phone or electricity bill (not older than 2 months)

Types of Indian Bank RD Accounts

Indian Bank offers the following two types of recurring accounts for their customers:

Insured Recurring Deposit

• This account type can be opened with just a deposit of Rs 100 for a tenure starting from 3 to 5 years. 
• Under this RD scheme, you may get life insurance coverage. 
• It also allows you to opt for the loan against the amount you deposited.

Variable Recurring Deposit

• By choosing this type of account, you will have the flexibility to alter the monthly instalments. 
• You can open a variable RD account in Indian Bank with a minimum deposit from Rs. 25 up to Rs. 1 lakh.

Indian Bank RD Premature Withdrawal Rules

Penalty for premature withdrawal of NRE and NRO Term deposits and Exercise of discretion to disallow foreclosure of large value term deposits –opened or rolled over on or after 07.10.2015.

Indian Bank RD Penalty

In regards to variable RD accounts, the Indian Bank does not levy any penalties for delayed instalment payments. If you choose to foreclose your account, a penalty will be levied.

How to Close an Indian Bank RD Account Online?

Here, a step-by-step guide on how to close an Indian Bank RD account online is given below.

• Step 1- Download and open the ‘IndOASIS’ application.
• Step 2- Enter your login pin.
• Step 3- After logging in, click on the ‘e-deposit’ option.
• Step 4- Click on the ‘Recurring Deposit’ option and select the RD account you want to close.
• Step 5- Click on the ‘More’ option and select ‘Close RD’.
• Step 6- Select the ‘credit account’ and click on proceed and confirm.
• Step 7- Enter your 4-digit MPIN and click on submit.
• Step 8- Enter the OTP that you will receive on your registered mobile number.

After this, a request for closing your Indian Bank RD account will be successfully sent via the app.

How to Close Indian Bank RD Account Offline?

Read below to learn the steps on how to close your RD account by visiting your nearby branch.

• Step 1- Collect the RD account closure form from your nearby Indian Bank branch.
• Step 2- Fill out the required details like DOB, name, address, and account number. In addition, you need to state the reason for closing your account and your signature.
• Step 3- You need to submit your self-attested KYC documents (PAN and Aadhaar card) along with the closer form to the bank.
• Step 4- You need to submit the balance cheque leaves, the passbook, and the debit card while submitting the form.

TDS on Indian Bank RD

If your FD and RD accounts across all bank branches exceed Rs. 40,000 in a financial year, TDS (Tax Deduction at Source) will be deducted by the Indian Bank. In the case of senior citizens, the maximum limit is Rs. 50,000.

Note: The TDS is applicable at 10% but after the COVID-19 pandemic, it has been reduced to 7.5%.

Loan Against Indian Bank Recurring Deposit

The primary purpose of such loans is to help a borrower meet urgent financial needs such as medical emergencies, educational expenses, weddings, debt consolidation and alike without foreclosing FD amount.

Documents such as salary pay slips (of last 3 months), electricity bill, passport, PAN card, two passport-sized photographs, and duly filled loan application are a must while applying for this loan.

Here are some of the salient features or benefits of a loan against an Indian Bank RD account.

• Under this loan, the maximum amount of loan sanctioned is up to 90% of the accrued value of the deposit.
• As of 2023, the interest rate applicable to this loan is 1% above the Indian Bank RD interest rate.
• Loan against Indian Bank RD account offers a flexible repayment option where you can pay back till the end of the maturity date of the term deposit.
• The pledge of term deposit is considered to be the security of this type of loan.
• Indian Bank does not charge any processing fee.

Now that you have a complete idea of the Indian Bank RD rates for 2023, you can easily make an informed decision while choosing the monthly instalment amount and the tenure. Kindly go through all the scheme-related information before investing.

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