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Cooperative Bank RD: Interest Rates, Features, Eligibility, Documents and Taxes
Across India, there are 34 State Cooperative Banks (StCBs), 1,457 Urban Cooperative Banks, 351 District Central Cooperative Banks (DCCBs), and one Industrial Cooperative Bank.
By delivering cost-effective banking services to rural and urban populations, these banks contribute significantly to financial inclusion.
Among their various financial products, the recurring deposit (RD) interest rates offered by Cooperative Banks are notably higher, making them a reliable option for savers seeking consistent growth with attractive interest rates.
Cooperative Bank RD Rates Latest in 2025
Co-Operative Bank Name | Highest Interest Rate (p.a.) | Highest Interest Rate (p.a.) for Senior Citizens |
West Bengal State Co-operative Bank | 6.50% | 6.75% |
Vidyasagar Central Co-operative Bank | 6.55% | 7.05% |
The Visakhapatnam Co-operative Bank | 6.50% | 7.00% |
Kerala State Co-operative Bank | 7.10% | 7.60% |
The National co op Bank | 7.15% | 7.65% |
SVC Co-Operative Bank | 6.85% | 7.35% |
Raiganj Central Co-operative Bank | 7.10% | 7.60% |
Kangra Central Co-operative Bank | 6.40% | 6.90% |
The Calicut Co-Operative Urban Bank | 7.50% | 8.00% |
Note: The rates may change at any time as per the bank’s policy.
Features and Benefits of Cooperative Bank RD
A Cooperative Bank RD is an excellent option for individuals with a steady income who want to systematically grow their savings by depositing a fixed amount each month while earning attractive interest rates.
- Monthly deposits can start as low as ₹100, with a maximum limit of ₹1,00,000.
- Cooperative bank offers RDs for tenure ranging from 6 months to 10 years.
- Cooperative Bank RD interest rate is compounded quarterly and paid out at the end of the deposit term.
- Depositors can avail of loans against their recurring deposit balance.
- Nomination facility is provided for added security.
- No penalties are applicable if you miss a monthly instalment.
Eligibility to Invest in Cooperative Bank Recurring Deposits
- Age: Most banks allow individuals aged 18 and above to open an RD account. Minors can also open an account with a parent or guardian.
- Income: There is no strict income requirement. Anyone with a regular source of income can invest, though minimum monthly deposit amounts vary across banks.
- KYC Documents: Submission of KYC documents such as Aadhaar, PAN, and address proof is mandatory. These documents ensure secure banking and help prevent fraud and money laundering.
- Account Type: RD accounts can be held individually or jointly. For joint accounts, all holders must meet the age and KYC requirements, e.g., both spouses must be eligible.
Documents Required to Open an RD at Cooperative Bank
The documentation process for opening an RD account with Corporation Bank is straightforward. To ensure a smooth account opening, have the following mandatory documents ready:
Proof of Identity (any one of the following)
- Driving licence
- Senior citizen ID card
- Passport
- PAN Card
- Voter ID card
- Government-issued ID card
- Photo ration card
Proof of Address (any one of the following)
- Bank statement with a cheque
- Certificate or ID card issued by the post office
- Telephone bill
- Passport
- Electricity bill
Tax Implications on Cooperative Bank Recurring Deposits
Interest earned on Cooperative Bank Recurring Deposits (RDs) is fully taxable under “Income from Other Sources” as per your tax slab.
TDS Rates
- 10% TDS (with PAN) and 20% TDS (without PAN) if annual interest exceeds ₹50,000 for regular taxpayers.
- Same TDS, if the annual interest exceeds ₹1,00,000 for senior citizens.
Tax Exemption
To avoid TDS, depositors with a total income below the taxable limit can submit Form 15G for individuals below 60 years or Form 15H for senior citizens.
How to Close a Co-Operative Bank RD?
Here is how you can close co-operative bank recurring deposit account-
- Obtain and Fill the RD Account Closure Form
Visit your co-operative bank branch and request the RD account closure form. Fill in all required details carefully, sign the form, and submit it to the branch manager or bank executive. If the account has joint holders, all parties must sign the form.
- Attach KYC Documents
Include copies of your KYC documents, such as PAN card (proof of identity) and an address proof. Banks may ask for self-attestation of these documents. All account holders need to provide their documents.
- Submit RD Certificate or Receipt
Provide the RD deposit certificate or receipt issued when the account was opened. The bank will verify the documents, and once everything is in order, it will release your RD balance.
Conclusion
Cooperative Bank RD interest rate offers a secure and reliable way to grow savings with attractive interest rates compared to a normal savings account. For those who do not have access to commercial banks, these recurring deposits are a great option for investment.
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