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Allahabad Bank Recurring Deposit

Allahabad Bank which merged with Indian Bank recently following the mega merger offer individuals the option of opening a Recurring Deposit account with them. The account can be opened for a period between 6 months and 10 years. The interest offered is in the range of 5.50% to 5.80% p.a. Senior citizens are offered additional interest of 0.50% p.a.

Rate of return offered by Allahabad Bank on RDs

The interest rates offered by Allahabad Bank on recurring deposits depending on the tenure is mentioned in the table below:

Tenure Interest rate of general public (p.a.) Interest rate of senior citizens (p.a.)
6 months to less than 9 months 5.50% 6.00%
9 months to less than 12 months 5.50% 6.00%
12 months 5.90% 6.40%
12 months 1 day to less than 24 months 5.80% 6.30%
24 months to less than 36 months 5.80% 6.30%
36 months to less than 60 months 5.80% 6.30%
60 months 5.80% 6.30%
Above 60 months 5.80% 6.30%

Note: The mentioned rates are for deposits less than Rs.2 crore.

Disclaimer: Allahabad Bank has merged with Indian Bank. It will now operate as branches of Indian Bank.

Type of Recurring Deposits

Allahabad Bank offer two types of recurring deposits. They are:

  • Regular recurring deposits
  • Variable recurring deposits

Features of Regular recurring deposits

Some of the features of Regular recurring deposits offered by Allahabad Bank:

  • Can be opened with a minimum of Rs.100 per month
  • Interest is compounded quarterly
  • Nomination, loan and foreclosure facilities available

Features of Variable Recurring Deposit

The features of Variable Recurring Deposit are listed below:

  • Can be opened with an initial deposit of Rs.500
  • Maximum monthly instalment is capped at Rs.1 lakh
  • Can foreclose the Variable RD account
  • Nomination facility available
  • Can avail a loan against the outstanding balance amount
  • It can be opened for a period of 36 months

Who can open a Recurring Deposit account with Allahabad Bank?

To open the variable recurring deposit with Allahabad Bank, you need to be:

  • A Resident Indian
  • A member of a Hindu Undivided Family (HUFs)
  • Minor
  • Commercial organisations, educational institutions, partnership firms, charitable trust, proprietorship, company, club, and societies.

How to open an Allahabad Bank RD?

You can open the Variable RD account with Allahabad bank either online or offline. You can book the RD through net banking or by visiting the bank branch along with the necessary documents.

Documents Required

The documents which need to be submitted are listed below:

  • Passport-size photograph
  • Identity proof
  • Address proof

Short-term Recurring Deposit Interest Rates

RD accounts opened for a tenure between 6 months and less than 12 months are known as short-term recurring deposits. Allahabad bank offer general citizens interest of 5.50% p.a. on such tenures. Senior citizens are offered 6.00% p.a.

Medium Recurring Deposit Interest Rates

Medium-term Recurring deposits are those which are opened for a period ranging between 12 months and 33 months. The interest offered on such deposits is in the range of 5.80% p.a. to 5.90% p.a. Citizens above the age of 60 years are offered additional interest of 0.50% p.a.

Long Term Recurring Deposit Interest Rates

Deposits opened for a period in excess of 3 years fall under the category of long-term recurring deposits. The interest paid by Allahabad bank on such tenures is 5.80% p.a. for general citizens and 6.30% p.a. to senior citizens.

Allahabad Bank Recurring Deposit FAQs

  1. When is the interest paid if I open a variable recurring deposit?

    Interest is paid on the minimum balance between 10th and the last day of the month.

  2. Is TDS applicable?

    Yes, TDS is applicable.

  3. Is a penalty for delayed payment of RD instalments?

    No, there isn’t any penalty on delayed payment of instalments

  4. Can I vary subsequent monthly instalment when it comes to variable recurring deposit?

    Yes, you can vary the subsequent monthly instalment. However, this is subjected to a maximum of Rs.10 lakh every month.

  5. What is the purpose of RD calculator?

    Using the RD calculator helps you compute the returns and know the exact amount which you will receive at the end of the investment tenure.

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