Citibank RD Interest Rates 2019

Last Updated 20th May 2019

Citibank Interest Rate on RD, 2019

Tenure General Rates Senior Citizen Rates
365 days to 400 days 6.25% 6.75%
401 days to 540 days 7.25% 7.75%
541 days to 731 days 6.00% 6.50%
732 days to 1095 days 7.50% 8.00%

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Citibank RD Calculator
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Citibank Recurring Deposit

  • Citibank offers RD interest rates up to 7.50%
  • Interest on RD with Citibank is compounded quarterly.
  • Citibank accepts minimum deposits starting at Rs. 1,000.
  • For senior citizens Citibank offers RD rate upto 8.00%.
Citibank Recurring Deposit Interest Rates – Special Features
  • you can place a monthly standing instruction to automatically debit your account and book a Recurring Deposit
  • Bank provides attractive rate of interest alongwith a range of flexible tenures
  • The deposit tenure ranges from 12 months to 24 months
  • The minimum amount can deposited in multiples of Rs. 5,000 or Rs. 10,000
  • Visit any Citibank branch to avail this service
  • TDS deductions are subject to the existing income tax rules as at the time of opening the RD account

Citibank RD Account

Citibank offers recurring deposit option to their customers to park their periodically generated surplus savings for a fixed tenure. A customer is required to make a deposit once into their RD account at the time of opening the account with the bank. The customer then makes periodic deposits and withdraws any money in the account during the tenure of the deposit.

Regular RD

  • you can place a monthly standing instruction to automatically debit your account and book a Recurring Deposit
  • Bank provides attractive rate of interest along with a range of flexible tenures
  • The minimum tenure of this RD is 12 months
  • The minimum deposit to be made in this account is Rs. 1,000
  • The minimum amount can deposited in multiples of Rs. 5,000 or Rs. 10,000

Citibank Recurring Deposit Rates

There are some factors that affect Citibank Recurring Deposit interest rates. These are as follows:

Policies Framed by RBI : The change in Cash Reserve Ratio (CRR) and repo rate as directed by the RBI affect the interest rate of all banking instruments including the recurring deposit.

Recession – In times of recession, RBI releases funds in the market and hence injecting liquidity in the market. As a result of high liquidity and low credit demand, banks reduce the rates on RD.

Inflation – Inflation has a positive effect on a fixed deposit interest rate. Hence, RD rates tend to be higher in a period of rising inflation.

Current State of Economy – In a booming economy, people take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through recurring deposits.

Citibank RD Interest Calculator

RD maturity amount that you will get depends on the following three parameters

  • Deposit amount – This is the initial amount deposited by a customer in Citibank. Higher interest rate might be offered on larger deposits. Citibank offers deposit amount starting at Rs. 1,000.
  • Rate of Interest- Citibank offers a higher rate of interest on recurring deposits of longer tenure and lower interest rate on deposits held for a shorter period. Highest interest rate offered by SBI is 7.50% for deposit amount.
  • Period of deposit- Bank offers low interest rate for short tenure RDs and higher interest rate for long tenure RDs.

Duration of Recurring Deposits with Citibank

You can open a Recurring Deposit account with Citibank Bank for a minimum tenure of 12 months which can go up to maximum tenure of 24 months.

Premature withdrawal of RD with Citibank

Premature withdrawal of RD with Citibank Bank is allowed. Citibank Bank may charge a nominal amount of penalty as per their banking norms.

However, Partial withdrawal of RD account is not allowed.

Penalty for delayed installment of RD with Citibank

Bank may give you grace of some days if you delay the payment beyond the due date. In case you do not pay your installment after due date, Citibank Bank will charge a penalty as per their norms.

Illustration: Mr. A opens a RD account for tenure of 1 year with periodic deposits of Rs. 5,000 per month at an interest rate of 7.50%. In this case, the maturity amount at the end of 1 year will be Rs. 62,478 and includes the collected principal and total interest earned on the principal amount during the period at Rs. 2,478. Similarly, you can calculate the interest and maturity amount for higher tenures by using RD calculator.

Frequently Asked Questions

What is the eligibility for opening an RD account?

Indian residents and HUF (Hindu Undivided Families) can open RD account. NRIs can also open the RD account through NRO and NRE accounts.
Banks provide RD scheme for minors as well, under the guardianship of parents to supervise their finances.

What is the general tenure/duration of Citibank Recurring Deposits?

Citibank RD can be opened for minimum 12 months to maximum tenure of 24 months.

Is premature withdrawal allowed in RD accounts?

The amount can only be withdrawn on maturity. In case of emergency you can break your RD before maturity, but after that your account will be closed. Banks may deduct 1 or 2 percent penalty from the interest accrued on your RD amount for the period for which the amount was with the bank.
The minimum lock in period is 3 months and if the depositor request a premature withdrawal before that, he earns zero interest and only the principal amount will be refunded to him. Apart from cancelled interest, any incentives offered are also withdrawn.

Is partial withdrawal of RD accounts allowed by Citibank?

Partial withdrawal of recurring deposit is not allowed by Citibank. However, some banks offer the facility to obtain Loan or Overdraft by keeping your RD as collateral. On the other hand, premature withdrawals are allowed by post offices if you have an RD account with them for at least a year. The withdrawn amount is considered a loan, which has to be paid in lump sum.
Premature Closure is allowed, but with some penalty.

What exactly happens on maturity of RD account?

On maturity of your RD account, you can ask the bank to transfer the principal amount and the accumulated interest component directly into your linked savings account. You can also invest your RD amount in fixed deposits after maturity.

Is nomination facility available in Citibank RD account?

Nomination facility is available in Citibank recurring deposits. Whether you open it in single name or joint name, only one nominee per account is permissible. You should ensure that the nomination is followed as per RBI rules. You can change the nominee through declaration in appropriate form.

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