IDBI Bank Recurring Deposit Interest Rates
Priya has recently started a job in a tech company after completing her degree. She has heard a lot about saving up and investing in fixed deposits for the future. The problem is that she doesn’t have a huge amount of money that she can invest for such a long time.
Priya learns about Recurring Deposits from researching on the Internet. In a Recurring deposit account, she won’t need to deposit a huge amount of money at once and can deposit a small amount every month. She decides to make an IDBI RD account and here is what she learns about its interest rates:
IDBI Bank Interest rates
IDBI Bank offers recurring deposit accounts that can be opened with a minimum amount of Rs 100 for a tenure ranging from 1 year to 10 years. The interest rates can reach up to 5.25% for general citizens and up to 5.75% for senior citizens. Loans facility is available against the RD account in IDBI Bank. Nomination for the maturity amount can also be made.
The detailed interest rates are given below:
|Tenure||General rates||Senior citizen rates|
|1 year 1 day to 2 years||5.00%||5.50%|
|2 years 1 day to less than 3 years||5.10%||5.60%|
|3 years to less than 5 years||5.25%||5.75%|
|5 years 1 day to 7 years||5.25%||5.75%|
|7 years 1 day to 10 years||5.25%||5.75%|
Note: These interest rates have last been updated on Nov 15, 2021.
IDBI Bank Medium Term Recurring Deposit Interest Rates
A Recurring deposit account added for a period from 1 year to less than 3 years falls into the medium-term bracket. The rate of interest offered by IDBI bank to general citizens is between the ranges of 4.90 to 5.10% p.a. Senior citizens are offered a rate of interest between the ranges of 5.40 to 5.60% p.a.
IDBI Bank Long Term Recurring Deposit Interest Rates
A Recurring deposit account opened for a period above 3 years falls into the long-term bracket. The rate of interest offered by IDBI bank to general citizens is 5.25 % p.a.Senior Citizens are offered a rate of interest of 5.75 % p.a.
Factors Affecting IDBI Bank Recurring Deposit Rates
The factors that affect the interest rates of recurring deposit accounts are as follows:
- Reserve Bank Of India (RBI) policies – Changes in Cash Reverse Ratio (CRR) and repo rate made by the RBI affect interest rates of all banking instruments including recurring deposits.
- Recession – During times of recession, RBI releases funds in the market and hence surfaces liquidity in the market. Because of high liquidity and low credit demand in the market, banks reduce their rates on RD.
- Inflation- Inflation has a positive effect on interest rates. RD interest rates during periods of inflation.
- The current state of the economy in India- In times when the economy is booming, people are inclined to take larger credits to fulfill their personal and business needs. In times of high credit demands, banks offer higher interest rates to collect more funds through recurring deposits.
IDBI RD Calculator
If you are planning to open an IDBI bank recurring deposit account, you might want to consider checking your maturity amount with the help of an RD calculator.
To calculate this you need to know:
- Deposit amount- the initial amount deposited during the opening of the account. Higher interest rates may be offered on higher deposits. The minimum deposit for opening an RD account in IDBI bank is Rs. 100.
- Rate of interest- A higher rate of interest is offered on longer-term RD accounts and a lower rate of interest is offered on shorter-term RD accounts.
- Tenure – Lower interest rates are offered for the shorter term and higher interest rates are offered for the longer term.
The formula for calculating RD maturity compound interest is :
Here M is the maturity value, R is the monthly installment, i is the rate of interest divided by 4 and n is the tenure (in a quarter).
What is the eligibility to open an IDBI Bank Recurring Deposit account?
To open a Recurring Deposit account in an IDBI Bank the eligibility is
# An individual who is an Indian citizen and member of a Hindu undivided family (HUF).
# NRIs can open an account through Non-Resident Ordinary Account (NRO) and Non-Resident External Account (NRE) accounts.
# A recurring account can be opened for a minor under the supervision of their guardian
Is partial withdrawal allowed in an IDBI Bank Recurring Deposit account?
Partial withdrawals are not allowed in the Idbi Bank Recurring deposit bank account.