Indian Bank (IB), a 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 the Indian Bank is the recurring deposit (RD) scheme.
Indian Bank RD Rates, 2020
The following are the Indian Bank RD Rates in 2020 over various tenures*:
|RD Time Period||RD Interest Rate|
|180 days or 6 months||4.75%|
|9 months to less than 1 year||5.25%|
|Above 12 months – less than 24 months||5.65%|
|Above 2 months – less than 36 months||5.65%|
|Above 36 months to less than 60 months||5.65%|
|Above 60 months||5.65%|
|61 months and above||5.65%|
*Interest Rates updated as of 1st May 2020.
Indian Bank RD – Key Features
The following are some of the key features of an Indian Bank Recurring Deposit*:
Indian Bank Recurring Deposit
|Interest Payout||Quarterly compounding of RD account balance and interest payout at maturity|
|Loan on RD option||Maximum 90% of RD deposit amount|
Indian Bank RD – Eligibility Criteria
Various individuals and organisations/institutions can open a recurring deposit account with Indian Bank. Eligible individuals/institutions that can open an IB recurring deposit 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.
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.