Indian Bank Swarna Nidhi RD
The Indian Bank Swarna Nidhi Deposit is a recurring deposit and a variable recurring deposit that offers you an excellent option to use the maturity proceeds to buy golds coins at a discount. Deposit holders get a discount on the gold coins to be purchased from the proceeds at Rs 25 per gram.
IB Swarna Nidhi RD/IB Swarna Nidhi VRD is offered as a recurring deposit scheme for customers with an option to purchase a gold coin from Indian Bank after the maturity date.
This recurring deposit from Indian Bank offers complete flexibility with regards to deposit amounts and deposit tenures.
Features of IB Swarna Nidhi RD/IB Swarna Nidhi VRD
Interest Rates:
The interest rates on an IB Swarna Nidhi RD/IB Swarna Nidhi VRD account is applied on a quarterly basis. For deposit amounts below Rs. 1 crore, the interest rate offered by Indian Bank ranges from 5.00% to up to 7.25%.
For deposit amounts varying from Rs. 1 crore to up to Rs. 5 crores, the interest rate offered by Indian Bank ranges from 5.00% to up to 7.00%.
For Deposits up to Rs.1 Crore | |
Tenure | Interest Rate |
6 months to 9 months | 7.00 % p.a. |
9 months to below 1 year | 7.25 % p.a. |
1 year to 2 years | 7.25 % p.a. |
2 years to 3 years | 7.25 % p.a. |
3 years and above | 7.00 % p.a. |
For Deposits between Rs.1 Crore and Rs. 5 crores | |
Tenure | Interest Rate |
6 months to 9 months | 6.75 % p.a. |
9 months to below 1 year | 6.75 % p.a. |
1 year to 2 years | 6.75 % p.a. |
2 years to 3 years | 6.75 % p.a. |
3 years and above | 6.50 % p.a. |
Deposit Amount:
Customers can open recurring deposit accounts with a minimum amount of Rs. 500 and can be increased in multiples of Rs. 100. For the IB Swarna Nidhi VRD scheme the maximum deposit amount can be Rs. 10 lakhs per month.
Deposit Tenure:
Customers can open recurring deposit accounts with a minimum tenure of 6 months and up to a maximum tenure of 12 months.
Other Features:
Account holders can get discounts on the purchase of gold coins at the rate of Rs. 25 per gram. If the customer's account has a maturity value of Rs. 12,000 or above, then Indian Bank will provide complimentary personal accident insurance for a value of Rs. 1 lakh under the IB Chatra policy.
Special Benefits
Gold Coin Discount: ₹25 per gram discount at maturity
Complimentary Insurance: If maturity value is ₹12,000 or above, customer gets ₹1 lakh Personal Accident Insurance under the IB Chatra Policy
Flexible deposit options under VRD
Nomination facility available
Additional Important Points
- Eligibility: Individuals (single/joint), minors, HUFs, firms, and other eligible entities as per bank rules.
- Premature Withdrawal: Allowed with applicable penalty as per bank norms.
- Loan/Overdraft Facility: May be available against RD balance.
- Taxation: Interest earned is taxable under “Income from Other Sources.”
- TDS: Applicable if interest exceeds the prescribed limit under Income Tax Act.
- Mode of Payment: Cash, cheque, standing instruction, ECS, or online transfer.
- Maturity Payout: Credited to linked savings/current account unless used for gold purchase.
- Ideal For: Customers planning to buy gold in the short term while earning interest on savings.
- Risk Factor: Gold price at maturity may differ from current rates (discount applies only on bank’s selling price).
Who Should Consider This Scheme?
- Individuals planning to buy gold within 6–12 months
- Parents saving for small gold purchases for weddings or festivals
- Investors looking for short-term disciplined savings with an additional gold benefit
RD Article Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes
- Monthly Recurring Deposit
- Co-operative Bank Recurring Deposit
- City Union Bank Recurring Deposit
- Indian Bank Recurring Deposit
- Union Bank Recurring Deposit
- UCO Bank Recurring Deposit
FAQs
- What is IB Swarna Nidhi RD?
IB Swarna Nidhi RD is a recurring deposit scheme that allows customers to accumulate savings and use the maturity proceeds to purchase gold coins from Indian Bank at a discount of ₹25 per gram.
- What is the difference between RD and VRD?
- RD (Recurring Deposit): Fixed monthly instalment.
- VRD (Variable Recurring Deposit): Flexible monthly deposit amount (subject to scheme limits).
- What is the minimum deposit amount?
The minimum deposit is ₹500 per month, in multiples of ₹100.
- What is the maximum deposit allowed?
Under the VRD option, customers can deposit up to ₹10 lakh per month.
- What is the tenure of the scheme?
The minimum tenure is 6 months and the maximum tenure is 12 months.
- What are the interest rates offered?
Interest rates range from 5.00% to 7.25% p.a., depending on tenure and deposit amount. Interest is compounded quarterly.
- Is there any benefit for purchasing gold?
Yes. Customers receive a ₹25 per gram discount on gold coins purchased using the maturity proceeds.
- Is TDS applicable on this RD?
Yes. TDS is applicable if the interest earned exceeds the prescribed limit under the Income Tax Act.
- Can I withdraw the deposit before maturity?
Yes, premature withdrawal is allowed, subject to applicable penalties as per bank rules.
- Is loan or overdraft facility available?
Loan/overdraft may be available against the RD balance as per bank norms.
- Is nomination facility available?
Yes, nomination facility is available.
- Who is eligible to open the account?
Individuals (single or joint), minors, HUFs, firms, and other eligible entities as per bank guidelines can open the account.
- How can I open IB Swarna Nidhi RD?
You can open the account:
- By visiting the nearest Indian Bank branch
- Through net banking (if eligible)
- Through mobile banking
- Is the gold price fixed at the time of opening the RD?
No. The gold price applicable will be the bank’s selling price at the time of purchase (maturity), and the ₹25 per gram discount will be applied on that price.
- Is the interest earned taxable?
Yes, the interest earned is taxable as per your income tax slab under “Income from Other Sources.”
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