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Introduction
A Recurring Deposit (RD) is a form of a term deposit that is provided by many banks. It allows the customer to deposit the needed amount of money in periodic intervals with the bank and, it acquires a certain amount of interest on the same. These periodic monthly deposits can be made over a certain period decided by the depositor.
The major difference between a fixed deposit and a recurring deposit is that a recurring deposit allows one to make regular investments in the deposit that goes on for the full duration, whereas a fixed deposit, allows one to deposit the entire sum of money at the time they open the fixed deposit account.
About Andhra Bank Recurring Deposit Rate
- Andhra Bank Recurring Deposit Schemes
- Features of AB Recurring Deposit
- Penalty charges of AB Recurring Deposit
- Benefits of AB Recurring Deposit
- AB Recurring Deposit Interest Rates
- For Recurring Deposits Below Rs.10 crores
- NRE accounts
- Senior Citizens Interest rate
- Andhra Bank Recurring Deposit Calculator
- Advantages of Opening a Recurring Deposit Account
- Disadvantages of Opening a Recurring Deposit Account
- Andhra Bank Recurring Deposit FAQs
Andhra Bank Recurring Deposit Schemes
A recurring deposit in Andhra Bank helps the individual develop a habit of saving at regular intervals. There recurring deposit scheme offered by Andhra Bank is known as ‘AB recurring deposit’.
Features of AB Recurring Deposit
- There is no maximum ceiling for this deposit.
- The duration for the recurring deposit ranges between 6 months to 10 years.
- The interest that is earned is compounded quarterly
- There is a penalty for closure within 6 months of opening the recurring deposit
- The customer must choose a specified number of monthly instalments which is subject to the minimum amount. This cannot be changed later.
Penalty charges of AB Recurring Deposit
- It is Rs.10/- if balance is less than Rs.100/-
- It is Rs.20/- if balance is between Rs.100/- to Rs.1000/-
- It is Rs.50/- if balance is above Rs.1000/-
Benefits of AB Recurring Deposit
- It allows one to safely deposit a small amount of money periodically rather than a large amount as in the case of a fixed deposit.
- It is apt for individuals with a stable monthly income who may not be able to spare a large amount of money to open a fixed deposit
- It provides flexible tenures that span from 6 months to 10 years
- It is very safe and a low-risk type of investment
- It is not affected by market fluctuations
- The interest is paid only on maturity of the deposit
AB Recurring Deposit Interest Rates
Andhra Bank recurring deposit interest rates are same as the rates offered for the fixed deposit accounts.
Following is an overview of AB recurring deposit Rates as of 10.09.2018
(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the bank. For the latest rates, it is advisable to check with Andhra Bank directly.)
For Recurring Deposits Below Rs.10 crores:
| Maturity periods | Less than Rs.1.00 crore | Rs.1.00 Crore to Rs.10.00 Crore |
|---|---|---|
| 7 days to 14 days | 4.00 | 4.00 |
| 15 days to 45 days | 5.25 | 4.00 |
| 46 days to 90 days | 6.00 | 6.26 |
| 91 days to 179 days | 6.26 | 6.26 |
| 6 months to < 9 months | 6.26 | 6.26 |
| 9 months to < 1 year | 6.60 | 6.26 |
| ONE year to 18 months | 6.80 | 6.90 |
| Above 18 months to 2 years | 6.80 | 6.51 |
| Above 2 years to 3 years | 6.75 | 6.25 |
| Above 3 years to 5 years | 6.75 | 6.25 |
| Above 5 years to 10 years | 6.50 | 6.25 |
Deposits Above Rs.10 crores
| Maturity period | Above Rs. 10 Crores to Rs. 50 Crores | Above Rs. 50 Crores to Rs. 100 Crores | Above Rs.100 Crores |
|---|---|---|---|
| 7 days to 14 days | 4.00 | 4.00 | 4.00 |
| 15 days to 45 days | 4.00 | 4.00 | 4.00 |
| 46 days to 90 days | 6.26 | 6.26 | 6.26 |
| 91 days to 179 days | 6.26 | 6.26 | 6.26 |
| 6 months to < 9 months | 6.26 | 6.26 | 6.26 |
| 9 months to < 1 year | 6.26 | 6.26 | 6.26 |
| 1 year to 18 months | 7.00 | 7.00 | 7.00 |
| Above 18 months to 2 years | 6.51 | 6.51 | 6.51 |
| Above 2 years to 3 years | 6.25 | 6.25 | 6.25 |
| Above 3 years to 5 years | 6.25 | 6.25 | 6.25 |
| Above 5 years to 10 years | 6.25 | 6.25 | 6.25 |
NRE accounts
| Period | Rate of Interest (%) p.a. | |
|---|---|---|
| Less than Rs.1 Crore | Rs.1 Crore to Rs.10 Crore | |
| ONE Year to 18 Months | 6.80 | 6.90 |
| Above 18 Months to 2 Years | 6.80 | 6.51 |
| Above 2 Years to 3 years | 6.75 | 6.25 |
| Above 5 Years to 10 years | 6.50 | 6.25 |
Senior Citizens Interest rate:
An additional rate of interest of 0.50% p.a. is offered to Senior Citizens which is extended to all the Domestic Term Deposits beyond Rs. 1.00 crore without any cap on the amount of deposit. However, for the deposit of Rs. 1.00 crore and above the minimum tenor should be minimum 6 months & above.
Andhra Bank Recurring Deposit Calculator
You can make use of the Andhra Bank recurring deposit Calculator to calculate the interest and the maturity that is received on the amount you invest. Using an RD calculator is easy as you just need to enter the amount you want to invest monthly, mention the date of opening of RD, the tenure and due date of RD. The calculator will then provide the maturity amount that you get at the time of maturity of the recurring deposit.
Using a recurring deposit calculator gives you the maturity amount and you can accordingly decide how much you want to invest. You can try various investment amount options and opt for the one that is most suited to your budget and helps achieve your financial goals.
Advantages of Opening a Recurring Deposit Account
- Apt for customers who cannot deposit a large amount of money in the beginning for a fixed deposit but want to deposit small amounts at regular intervals.
- A recurring deposit account can be started with small minimum amount.
- A big amount of money is received at maturity, along with the interest amount that is earned on it.
- The rate of interest is much higher when compared to an ordinary saving bank account
- The interest earned is generally the same as that of a fixed deposit
- Flexible tenures are available for the individual to choose from
- recurring deposit Interest Rates are fixed so you are guaranteed of a steady return
- Loan / overdraft facility is available with some banks.
- More liquid than most financial investment instruments
Disadvantages of Opening a Recurring Deposit Account
- If you need to take money from your recurring deposit due to a financial emergency, you will need to pay a penalty for the same.
- The interest earned might be lesser than other, riskier forms of financial investment, say investing in mutual funds, etc.
Andhra Bank Recurring Deposit FAQs
1. What is the maximum amount one can deposit in an RD with Andhra Bank?
There is no ceiling on the maximum amount with Andhra Bank.
2. What is the minimum and maximum deposit period with Andhra Bank?
The minimum deposit tenure is 6 months and can extend up to a maximum of 10 years with Andhra Bank.
3. Are the interest rates of a recurring deposit similar to that of a Fixed Deposit?
Yes, they are similar.
4.Do senior citizens have more interest with Andhra Bank?
Yes, an additional rate of interest of 0.50% p.a. is offered for senior citizens with Andhra Bank.
Andhra Bank Recurring Deposit Rate - Customer Reviews
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