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CreditMantri Finserve Private Limited
CreditMantri Finserve Private Limited Unit No. B2, No 769, Phase-1, Lower Ground Floor, Spencer Plaza, Anna Salai, Chennai - 600002
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Save money while enjoying a higher interest rate with Indian Overseas Bank Recurring Deposits. Indian Overseas Bank Recurring Deposit Interest Rates differ for resident and NRI customers. Indian Overseas Bank Senior Citizen RD Interest Rates are higher.
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A long- term investment plan, Recurring Deposit (RD) is a systematic investment plan wherein you make regular instalments and earn interest at the end of the maturity period. It functions similarly to the Fixed Deposit scheme. Small amounts of deposit is made on a monthly basis for a specific period to help in saving money. A major difference between recurring deposit and Fixed Deposit (FD) is the size of investment to be made. In fixed deposit, one needs to deposit a huge amount in a single-go for a specific period instead of smaller instalments. Interest rates are however similar in both types of investments.
About Indian Overseas Bank Recurring Deposit Rate
Indian Overseas Bank offers recurring deposit scheme that helps salaried or a rural saver to invest in small amounts and earn returns. One can make monthly deposits in this scheme and achieve financial goals like children’s education or marriage. The depositor can decide the period of investment and the number of instalments. Indian Overseas Bank also offers loan facility against the recurring deposit.
Indian Overseas Bank offers interest rate on recurring deposit same as that of Fixed Term Deposit. The bank can change these rates at their discretion and hence it is recommended that you check on the current rates before opening an account.
| Period of Deposit | New Rate (%) effective from 05-04-2018 |
|---|---|
| Up to less than Rs. 1 Crore | |
| 7-14 days* | 4.50 |
| 15-29 days | 4.50 |
| 30-45 Days | 4.50 |
| 46 -60 Days | 4.60 |
| 61-90 days | 4.60 |
| 91-120 days | 5.25 |
| 121-179 days | 5.50 |
| 180 -269 days | 5.75 |
| 270 days - < 1 year | 6.25 |
| 1 yr - < 2 yrs | 6.60 |
| 2 yrs to < 3yrs | 6.75 |
| 3 Yrs and above | 6.80 |
*Minimum amount Rs. 1 lac
For Senior citizens, the bank offers an additional rate of 0.50%
| Period of Deposit | New Rate (%) effective from 05-04-2018 |
|---|---|
| Up to less than Rs. 1 Crore | |
| 1 Year to < 2 Years | 6.60 |
| 2 Years to < 3 Years | 6.75 |
| 3 Years and Above | 6.80 |
The Indian Overseas Bank has categorized the people who could possible benefit from a recurring deposit Account:
Some of the advantages of having a recurring deposit account to put your savings are mentioned below:
| Description | Foreclosure Charges |
|---|---|
| Retail Term Deposits up to Rs. 15,000/- | Nil |
| Retail term deposits of Rs. 15,001/- up to Rs. 5 lakhs | 0.50% |
| Retail term deposits above Rs. 5 lacs but below Rs. 1 Crore | 1.00% |
| Bulk deposits of Rs. 1 crore & above | 1.00% |
1. What is the difference between recurring deposit and fixed deposit account?
In a recurring deposit account, you can make small investments on a regular basis to earn a lump sum amount at the end of the maturity period. In Fixed Deposit account, you need make an investment of huge amount in one-go and earn returns at the end of the tenure.
2. What is the minimum amount to put into a recurring deposit account?
With Indian Overseas Bank, you can start a recurring deposit account with a low amount of Rs. 50/- and then in multiples of Rs. 5/- thereafter.
3. Is there a minimum period of investment?
Yes, you will need to invest for a minimum period of 6 months.
4. Can I get a loan on the recurring deposit account?
The Indian Overseas Bank offers 90% loan on the deposit amount in the recurring deposit account. The Interest rate is also applicable accordingly.
5. Does Indian Overseas Bank offer any special privileges to senior citizens?
Yes, senior citizens get an additional interest rate of 0.50% over the card rate with Indian Overseas Bank.
6. How is the interest calculated in a recurring deposit account?
Interest is compounded on a quarterly basis and paid at the end of the maturity period.
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf. We do not sell any loans on our own and do not charge any fee from our customers/viewers for the purpose of loan application