Andhra Bank is a public-sector bank with a network of 2000 plus branches, 38 satellite offices, 15 extension counters, and thousands of ATMs spread across the country. Andhra Bank was established by the eminent freedom fighter Dr. Bhogaraju Pattabhi Sitaramayya. The bank started its operations on 28th November 1923.
Andhra Bank Fixed Deposit:
The bank provides retail investment solutions through its fixed deposit schemes with competitive interest rates for different tenures. However, Andhra Bank’s FD rates are subject to change based on the bank’s liquidity needs and fluctuations in the market.
A fixed deposit is a financial product provided by the banks which enables you/investors to get higher rate of interest on your savings when compared to a regular savings account. It is a kind of savings account or certificate of deposit which pays you a fixed rate of interest on your savings until a given maturity date. Fixed deposits usually cannot be withdrawn prior to maturity. However, with advance notice and paying the penalty fee, one can withdraw money from fixed deposits. Andhra Bank provides fixed deposit for different tenures at different rates by using which you can get greater benefits on your savings.
Features of Andhra Bank FD:
- With Andhra bank, you can invest in fixed deposits for a minimum period of 6 months and a maximum period of 10 years.
- Short-term deposits of 7 days are also offered. For this, the minimum deposit amount required is ₹ 1,00,000. In all other cases the minimum deposit period is 15 days.
- You will be paid simple interest on maturity of the deposit.
- You will get interest on monthly basis at discounted rates. Or, the interest may be paid to you on quarterly basis as desired by you.
- The bank offers FCNR term deposits and NRE term deposits for the NRIs.
Andhra Bank FD Eligibility:
Senior citizens, NRIs and Indian residents are eligible for opening an FD account with Andhra Bank. Individuals (both single and jointly), partnership firms, private and public limited companies, HUFs, specified associations, trusts, and society can open their FD accounts with Andhra Bank.
Andhra Bank FD for Senior Citizens:
Senior citizens i.e. those who have completed 60 years can get some extra benefits on FDs at Andhra Bank. Currently, senior citizens are allowed to open an FD account with Andhra Bank at a rate of interest that is 0.50% higher than standard rates, for all maturity periods. Existing and retired staff are also eligible for additional rate of interest on maturity.
Andhra Bank FD's for NRI
Andhra bank offers fixed deposits for non-resident Indians (NRI). It offers NRE and FCNR term deposits for NRIs. The NRE term deposits are accepted for a maximum period of 10 years while FCNR deposits are accepted for a maximum period of 5 years. Andhra Bank NRE term deposits can be maintained in Indian rupee. FCNR deposits can be maintained in GBP, EURO, USD, AUD and CAD. The highest rate of interest offered for NRE fixed deposits is 5.45%. The bank offers different interest rates for FCNR term deposits opened in different currencies. For example, it offers 4.57% for fixed/term deposits maintained in AUD. Both NRE and FCNR term deposits offered by Andhra Bank can be opened jointly.
Andhra Bank FD Interest Rates:
The bank offers different FD schemes for different tenures at different rates ranging between 3.5% and 5.00% on short-term holdings from 7 days to 1 year and around 5.40% to 5.45% on long-term holdings from 1 to 10 years.
Andhra Bank FD application Form:
You can download your FD application form from the website of Andhra Bank to open a fixed deposit account. In the form, you need to fill your personal and financial information such as PAN number, DOB, mobile no, TDS details etc.
Andhra Bank Fixed Deposit FAQ's
- Does Andhra Bank allow premature renewal of FD?
Depositors can renew their deposits by requesting for premature closure of an existing term deposit account. Andhra Bank will permit the renewal at the rate effective on the date of renewal, if the deposit is renewed for a period greater than the balance period of the original deposit.
- What is the Minimum/Maximum amount required to open an FD account with Andhra Bank?
In case of domestic term deposits, the bank accepts deposits up to Rs. 1 crore. The bank accepts fixed deposit above Rs. 100 crore, in which case, the branch accepting such high-value deposits, needs to get permission from the General Manager, Corporate Planning Department of Andhra Bank, before accepting the Deposit.
- What is theMinimum/Maximum deposit tenures of Andhra Bank FDs?
You can open an FD account with Andhra Bank for a minimum period of 6 months and a maximum period of 10 years.
- Are loans provided against FDs at Andhra Bank?
Normally Andhra Bank does not provide any loan against its term deposits. However, the bank may consider loan against deposit standing in the name of minor. It also considers loans against third party deposits.
- Is tax deducted on FDs at Andhra Bank?
Andhra Bank has the legal right to deduct tax at source if the total interest payable on all term deposits held by a person exceeds the amount specified under the Income Tax Act, 1961 which is currently Rs. 10,000 per year. You will get a TDS Certificate for the amount of tax deducted.
- Does Andhra Bank allow premature withdrawal of FD?
Andhra Bank allows pre-mature withdrawal of term deposits on request made by the depositor. A penalty charge of 1% is levied on premature cancellation/withdrawal of fixed deposits. However, certain scenarios are exempted from paying the penalty charge as per the bank’s terms and conditions.