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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.
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 Fixed deposits usually cannot be withdrawn prior to maturity.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.
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.
In case of domestic term deposits, the bank accepts deposits up to ₹ 1 crore. The bank accepts fixed deposit above ₹ 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.
You can open an FD account with Andhra Bank for a minimum period of 6 months and a maximum period of 10 years.
The bank offers different FD schemes for different tenures at different rates ranging between 7% and 8.5% on short-term holdings from 7 days to 1 year and around 8.5% to 8.75% on long-term holdings from 1 to 10 years.
The Andhra Bank FD interest rate starts from 7.00% and goes up to 8.75%, even if you open an FD account for above ₹ 100 crore. Interest rates are determined in keeping with market conditions and the bank’s requirements and are subject to change.
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.
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.
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.
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.
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.
If a fixed deposit matures on a Sunday or a holiday or a non- working day, bank would pay interest at the originally contracted rate on your deposit amount.
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 ₹ 10,000 per year. You will get a TDS Certificate for the amount of tax deducted.
Yes, the 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 8.50%. 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.