Andhra Bank Recurring Deposit (RD)
The Andhra Bank Recurring Deposit (RD) scheme, now merged with Union Bank of India, offers a safe and convenient way to save small amounts regularly with a guaranteed interest rate. It is ideal for those who want a disciplined approach to saving without exposing their money to market risks.
Andhra Bank is one of those public-sector banks that was part of the megabank merger. The bank that merged with Union Bank of India lets you open a recurring deposit account with them.
The RD account can be opened with the bank for a period that ranges between 6 months and 10 years. The interest payable is in the range of 5.50% to 6.30% p.a. Senior citizens are offered additional interest of 0.50% on all deposit tenures.
Interest Rates Offered by Andhra Bank on RDs
In the table listed below, we provide you the interest rates offered by Andhra Bank on recurring deposits depending on the tenure:
Tenure | Interest rate of general public (p.a.) | Interest rate of senior citizens (p.a.) |
6 months to less than 12 months | 5.50% | 6.00% |
12 months | 5.75% | 6.25% |
12 months 1 day to less than 444 days | 5.75% | 6.25% |
444 days | 5.85% | 6.35% |
445 days to less than 555 days | 5.75% | 6.25% |
555 days | 5.90% | 6.40% |
556 days to 36 months | 5.75% | 6.25% |
36 months 1 day to 120 months | 5.80% | 6.30% |
Note: The mentioned rates are for deposits less than Rs.2 crore.
Disclaimer: Andhra Bank has merged with Union Bank of India. It will now operate as branches of Union Bank of India
Andhra Bank offers various types of recurring deposits
The bank offers three type of recurring deposits. They are:
- Andhra Bank Shubh Yatra
- AB Recurring Plus
- AB Recurring Deposits
Features of Andhra Bank Shubh Yatra
Listed below are the features of Andhra Bank Shubh Yatra:
- Rate of return offered is 5.75% p.a.
- Available tenure is 12 months
- M/s Thomas will fund the balance 13th instalment after factoring the accrued interest and deducted TDS.
- The maturity proceeds will be transferred to M/s Thomas Cook to pay for the pre-selected holiday package.
- Premature closure is allowed.
Features of AB Recurring Plus
The features of AB Recurring Plus are:
- Can be opened for a period between 6 and 60 months
- Senior citizens are offered additional interest of 0.50%
- Interest accrued is not subjected to any TDS
- The minimum and maximum monthly instalment is Rs.100 and Rs.1,00,000 respectively.
- You can set up instalments up to 10 times of the 'core amount' selected at the time of opening the RD account during any or all months before maturity of the deposit amount.
Features of AB Recurring Deposits
The features of AB Recurring Deposits are listed below:
- Can be opened for a period that ranges between 6 and 120 months
- There is no cap on the maximum deposit amount
- Interest is compounded on a quarterly basis
Who can open a recurring deposit account with Andhra Bank?
In order to open a recurring deposit account with Andhra Bank, you need to fulfil the following eligibility criteria:
- Must be a resident Indian
- Hindu Undivided Family (HUFs), minors, proprietorship, partnership firms, commercial organisations, educational institutions, charitable trust, company, club, society etc. are also eligible to open a RD account.
How to open an Andhra Bank RD account?
You can open an Andhra Bank RD by using either the online or offline mode. You can request it through net banking or visit the bank branch with the necessary documents.
Documents Required For Andhra Bank RD
The documents which need to be submitted are listed below:
- Passport-size photograph
- Identity proof
- Address proof
Andhra Bank RD Calculator
You can try out online RD calculators to calculate the interest on your RD. There are many websites that offer recurring deposit calculators. The process is simple and hassle-free. All you need to do is enter all the details pertaining to your RD account, including the amount, tenure, and rate of interest.
You can invest money in RD schemes offered by Andhra Bank and enjoy competitive rates. However, to enjoy better returns, look for other investment vehicles like mutual funds, fixed deposits, stocks, and bonds, among others.
Short-term Recurring Deposit Interest Rates
Short-term recurring deposits are those which have a tenure between 6 months and less than a year. Andhra Bank offers a rate of return of 5.50% p.a. on such deposits. Senior citizens avail 6.00% p.a.
Medium-term Recurring Deposit Interest Rates
RD accounts opened for a period between 1 year and 3 years are known as medium-term recurring deposits. The interest offered on such deposits is in the range of 5.75% p.a. to 5.90% p.a. Citizens above the age of 60 years are offered an interest between 6.25% p.a. and 6.40% p.a. for opening a medium-term recurring deposit.
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 the lender on such deposits is 5.80% p.a. while senior citizens are offered 6.30% p.a.
FAQs on Andhra Bank Recurring Deposit
- What is the penalty for delay in payment of instalment with regard to Andhra Bank Shubh Yatra RD?
For delay in the payment of instalment of Andhra Bank Shubh Yatra RD, the bank charges a penalty of Rs.1 for Rs.100 every month.
- Can I avail tax benefits for investing in Andhra Bank Recurring deposits?
Yes, you are eligible to avail tax benefits.
- With regard to AB recurring deposits, what is the penalty for closure of the account within 6 months?
The penalty for closure of the RD account within 6 months is Rs.10 where the balance outstanding is less than Rs.100, Rs.20 where the balance outstanding is between Rs.100 and Rs.1,000, and Rs.50 where the balance outstanding is more than Rs.1,000.
- Can I choose the deposit amount when opening the Andhra Bank Shubh Yatra account?
No, you can't do that. The amount is selected by Thomas Cook based on the package selected by you.
- Can I know the amount which I will be receiving at the time of maturity before starting to invest in the RD account?
Yes, you can. All you need to do is use the bank's RD calculator and enter the details like deposit amount, tenure, and rate of interest.
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