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IndusInd Bank RD Rates – Calculations and Features

IndusInd Bank is one of the leading banks in India offering a wide range of financial services, with recurring deposits being one of them. Widely known for its AA+ CRISIL and ICRA rating, IndusInd Bank is also among the safest Indian banks for opening a recurring deposit. To know more, keep reading this comprehensive guide on IndusInd Bank RD rates.

Minimum Investment ₹500 
Tenure12 to 120 months
Interest Rates for General Citizens 7.00% to 7.50% 
Interest Rates for Senior Citizens 7.75% to 8.25% 
Loan Against IndusInd Bank RDNA
TDS on RDAvailable 

IndusInd Bank RD Interest Rates 2024 under ₹2 Crores

IndusInd Bank RD rates can be beneficial for individuals who are seeking to diversify their portfolio by earning a fixed income at the end of their tenure. Moreover, the RD rates offered by the bank are quite popular among senior citizens since the bank offers additional interest to them.

Let’s take a look at the varying IndusInd Bank recurring deposit interest rates applicable to general and senior citizens in 2023. 

TenureInterest Rates for General CitizensInterest Rates for Senior Citizens
12 months7.50%8.25%
15 months7.50%8.25%
18 months7.50%8.25%
21 months7.50%8.25%
24 months7.50%8.25%
27 months7.25%8.00%
30 months7.25%8.00%
33 months7.25%8.00%
36 months7.25%8.00%
39 months7.25%8.00%
3 years to below 61 months7.25%8.00%
61 months and above7.00%7.75%

Note: The above-mentioned interest rates are effective from 1st December, 2023 and are subject to change from time to time. 

Features of IndusInd Bank Recurring Deposit Interest Rates 2023

Besides high-yielding IndusInd Bank RD rates, the RD accounts of this bank are designed with salient features to meet the unique financial requirements of different investors. Here are some of these features that you need to know. 

  1. An individual can invest a maximum amount of ₹2 crores in an IndusInd RD account. 
  2. IndusInd Bank RD rates are equivalent to the interest rates applicable to the fixed deposits offered by the bank. 
  3. Account holders can have a nominee for their RD. 
  4. The bank allows individuals to close their RD prematurely. 
  5. An RD account of IndusInd Bank can be only booked in multiples of ₹100. 

How to Open an RD Account in IndusInd Bank Online?

You can earn IndusInd Bank RD rates easily with their short and simple application process: 

  • Step 1: Log into your Netbanking account. 
  • Step 2: From the menu click on the ‘E-Recurring Deposit’ option. 
  • Step 3: Fill out the form with the necessary information including the instalment amount and tenure length. 
  • Step 4: This process will get your account activated and IndusInd Bank will credit the RD amount on the due date.  

How to Open an RD Account in IndusInd Bank Offline?

If you are uncomfortable with the online procedure, you can follow the below steps to open an RD account in IndusInd Bank offline. 

  • Step 1: Visit the nearest IndusInd Bank branch. 
  • Step 2: Ask for the recurring deposit account opening form. 
  • Step 3: Fill out the form with the necessary details and submit it. 
  • Step 4: Deposit the first instalment. 

You will be notified about the successful opening of IndusInd Bank recurring deposit. 

How to Calculate RD Interest Rates in IndusInd Bank?

There are two ways of calculating the maturity amount using the applicable IndusInd Bank RD rates, amount of monthly instalments and tenure.  

RD Calculation Formula 

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

In this formula: 

  • A = maturity amount
  • P = principal amount 
  • R = interest rate
  • n = number of times the interest will compound per year 
  • t = tenure 

Let’s say you want to invest ₹3,000 per month for 3 years. According to the current IndusInd Bank RD rates, your interest rate should be 7.50%, compounded quarterly. 

With that, you can calculate the maturity amount that you will receive at the end of the tenure. 

A = 3000 x (1 + 7.50/4)^4×36 = ₹1,21,358 

If you want a simpler and more accurate calculation method, you can opt for any RD calculator available online. 

IndusInd Bank RD Calculator 

Here is a stepwise process you need to follow to determine the maturity value of your RD investment using an RD calculator.  

  • Step 1: Navigate to an RD calculator page online. 
  • Step 2: Enter the amount of monthly investment, tenure and the rate of interest. 
  • Step 3: Press ‘Calculate’. 

The estimated returns and interest income will be displayed on the screen. 

Eligibility Criteria to Start an RD Account with IndusInd Bank

Here’s a list of entities that are eligible to open a recurring deposit with IndusInd Bank. 

  1. Resident individuals
  2. Non-resident individuals 
  3. Minors under guardianship
  4. Senior citizens 
  5. Hindu Undivided Families 
  6. Sole proprietors
  7. Partnership firms
  8. Corporations 
  9. Trusts 
  10. Societies 
  11. Clubs 

Documents Required for Starting an RD Account in IndusInd Bank

Apart from the primary requirements like the application form and passport-size photos, you need two types of documents to start taking advantage of recurring deposit interest rates in IndusInd Bank. 

Identity Proof 

  1. Aadhaar Card 
  2. Driving licence
  3. PAN Card 
  4. Voter’s Identity Card 
  5. Job card issued by NREGA 
  6. Senior Citizen ID Card 

Address Proof 

  1. Passport 
  2. Electricity/Telephone Bill 
  3. Bank Statement with a cheque 

Types of IndusInd Bank RD Accounts

You can benefit from IndusInd Bank recurring deposit interest rates by opening these two types of RD accounts:

1. Regular Recurring Deposit Account 

Under this account, individuals are allowed to invest a minimal amount per month for a predetermined time period to earn profitable and assured returns. 

  • Minimum Deposit: ₹500/month 
  • Maximum Deposit: ₹2 crores/month
  • Tenure: 1 year to 10 years
  • Interest Rate: 7.00% to 7.50% for the general citizens and 7.75% to 8.25% for senior citizens 
  • Eligibility: Indian residents 

2. NRE Recurring Deposit Account

NRE Recurring Deposit Account is an ideal investment option for NRIs to deposit their foreign income. Tax exemption is available on the interest earned from this type of account. 

  • Minimum Deposit: ₹500/month 
  • Maximum Deposit: ₹2 crores/month
  • Tenure: 1 year to 10 years
  • Interest Rate: 7.00% to 7.50% for the general citizens and 7.75% to 8.25% for senior citizens 
  • Eligibility: NRIs 

IndusInd Bank RD Premature Withdrawal Rules

Generally, the IndusInd Bank allows individuals to withdraw 50% of the total deposit prematurely. The bank, however, would only allow a premature withdrawal if the account is in operation for the minimum tenure of 12 months and the investor has paid each instalment successfully. 

IndusInd Bank RD Penalty

According to IndusInd Bank’s guidelines, the bank can levy a penalty for premature closure of an existing RD. The rate of penalty is up to the bank to decide. 

How to Close an IndusInd Bank RD Account Online?

Here’s how you can close your IndusInd Bank RD account online. 

  • Step 1: Download the RD account closure form from the official website of IndusInd Bank. 
  • Step 2: Print it out. 
  • Step 3: Fill up the form carefully with the required details. 
  • Step 4: Submit the form. 

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

How to Close IndusInd Bank RD Account Offline?

Go through the following steps to close your RD account at IndusInd Bank: 

  • Step 1: Visit the nearest IndusInd Bank branch and fill out the RD Account Closure Form. 
  • Step 2: Attach a copy of KYC documents and submit the form to the branch manager or officer-in-charge. 
  • Step 3: Submit the RD receipt. 

Once the verification is complete, withdraw the maturity amount or opt for transfer of the fund to another account. 

TDS on IndusInd Bank RD

The interest earned from recurring deposits of IndusInd Bank is subject to Tax Deducted at Source or TDS as per the current income tax regulations. 

Conclusion 

This blog aims to give you a comprehensive idea about IndusInd Bank RD rates and various aspects of investing in this financial instrument. If you are interested in investing in this scheme, we recommend you check the official website of the bank and take a financial expert’s advice before putting your money into it.  

FAQs

Is RD better than SIP? 

RD is a safer option than SIP as mutual funds are subject to market risks. RD can bring lower overall interest yield than SIP, but its results are predictable and guaranteed. 

How do I avoid tax on RD? 

You cannot avoid tax with RD earnings. If you want tax exemptions, you can invest in schemes like PPF, ULIP, ELSS, NPS, and NSC. 

What is the highest rate of return on an RD at IndusInd Bank? 

8.25% is the highest interest rate IndusInd Bank offers for RDs if the account holder is a senior citizen. For general citizens, the highest interest rate is 7.50%. 

What to do when an RD matures?

Upon maturity of an RD investment, an individual can either invest the total amount in an FD scheme of IndusInd Bank or request the bank to transfer the amount to their savings account.

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