Indian Bank (IB), a top notch public sector bank in India, offers its customers various options to make small systematic savings with ease. One of the key small savings product provided by Indian Bank is the recurring deposit (RD) account. The following are some of the key features of an Indian Bank Recurring Deposit*:
Indian Bank Recurring Deposit
|Deposit Amount||Minimum Rs. 5 per month|
No Maximum Amount
Equal Amount to be deposited every month
|Tenure||Minimum 6 months|
Maximum 10 years (120 months)
Incremental tenure in multiples of 3 months plus the minimum tenure
|Interest Rate||Minimum – 5.75% per annum|
Maximum – 7.35% per annum
|Interest Payout||Quarterly compounding of RD account balance and interest payout at maturity|
|Loan on RD option||Maximum 90% of RD deposit amount|
*The features of Indian Bank recurring deposit are liable to periodic change.
Indian Bank RD Rates 2019
The following are the Indian Bank RD Rates 2019 over various tenures*:
|RD Time Period||RD Interest Rate|
|15 months, 18 months and 21 months||6.60%|
|24 months to 33 months||6.50%|
|36 months to 120 months||6.00%|
*Interest Rates updated as of 15/02/19.
Key Features of Additional Types of Indian Bank RD
Indian Bank offers multiple types of recurring deposits in addition to the Indian Bank RD. Key features of other types of recurring deposits offered by Indian Bank are as follows:
|Indian Bank Insured Recurring Deposit|
|Eligibility||IB RD customers aged 18 years to 55 years (on date of a/c opening)|
|Key Feature||Low cost live insurance cover in addition to RD (Maximum life cover limit is Rs. 10 laksh)|
|Deposit Amount||Minimum Rs. 100 |
Maximum Rs. 10 lakhs
|Tenure||Minimum 36 months |
Maximum 60 months
|Maturity Payout||Maturity pay out equals total deposit plus interest less premium amount paid by bank for life cover of RD holder|
|Additional Features||No upfront premium payment requirement for life cover|
No medical check required only declaration of good health (DGH) is sufficient
No preferential RD rate for senior citizens
|Indian Bank Variable Recurring Deposit|
|Deposit Interval||Half Yearly (every 6 months)|
|Loan/Overdraft Option||Up to 95% of RD account balance at the time of application|
|Deposit Amount||Minimum initial deposit Rs. 25 |
Maximum initial deposit Rs. 1 lakh
Subsequent monthly deposits may be up to 10 lakhs per month
|Tenure||Minimum 12 months, Maximum 120 months|
|Interest Payout||Quarterly compounding with pay out after maturity of account|
|Key Feature||Monthly RD contribution may be varied by depositor without penalties|
Indian Bank Recurring Deposit Eligibility Criteria
Various individuals and organisations/institutions can open a recurring deposit account with Indian Bank. Eligible individuals/institutions that can open an IB RD are:
- Joint Holders (Either or Survivor, Former or Survivor, Anyone or survivor, etc.)
- Registered Clubs
- Registered Societies
- Registered Associations
- Registered Partnerships, etc.
For non-individuals applying for Indian Bank RD account, internal criteria as specified by the bank from time to time will have to be met.
Indian Bank RD Application Form
Indian Bank recurring deposit account opening application form can be obtained either by visiting the nearby branch of Indian Bank in personal or can be downloaded from the official bank website. The form has to be filled out and submitted at an Indian Bank branch for a new recurring deposit to be opened with IB.
Documents Required for Opening Indian Bank RD
The following is a list of key documents that need to be submitted along with the applicable RD application form when opening an Indian Bank recurring deposit:
- KYC mandated Identity and address proof documents like Voter ID, Aadhaar, etc.
- PAN Card or Form 60/Form 61 (in absence of PAN)
- Additional documents such as certificate of incorporation/registration, etc. for societies, trust, etc.
Penalty for Foreclosure of Indian Bank RD
If the depositor requests premature closure of IB RD account, discontinues the account or fails to make 6 consecutive monthly deposit into the recurring deposit account, the bank may allow premature closure. In such cases, the RD account balance will be paid out as a lump sum along with applicable interest at the rate applied by Indian Bank in case of premature account closure. If premature closure occurs within 3 months of opening the Indian Bank recurring deposit, a service charge of Rs. 5 will be applicable.
Indian Bank Loan against Recurring Deposit
Depositors have the option of applying for a loan against their Indian Bank recurring deposit. While disbursal of the loan is at the discretion of the bank, the maximum Indian Bank loan against RD amount is up to 90% of the outstanding deposit in the RD account. The minimum loan against Indian Bank recurring deposit is Rs. 100 and minimum tenure for this secured loan is 6 months. The rate of interest for this loan varies on a case to case basis depending on the internal criteria of Indian Bank.