Andhra Recurring Deposit Interest Rates
Andhra Bank Recurring Deposit
A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. It is a special kind of term deposit offered by banks in India that help people save money by depositing a fixed amount of money on a regular basis into the RD account—and earn interest on it. It is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount.
The deposit matures on a specific date as per the tenure chosen which can range anywhere from 6 months to 120 months. Thus, Recurring Deposit schemes presents people with an opportunity to build up their savings through regular monthly deposits of a fixed sum for a fixed period of time.
The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.
Advantages to opening an RD account:
- Interest Rate earned is generally equal to that of an FD
- Safe and secure form of investment
- Secure from fluctuations and volatility
- Ideal for starters who wish to save money for specific purposes
- Ideal for people with a regular source of income who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
- Can be opened with small minimum amount.
- Lump sum received at maturity, including the interest—similar to an FD
- The rate of interest is higher as compared to an ordinary saving bank account
- Flexible tenures and minimum amount to suit the budget of the individual
- Loan / overdraft facility available with some banks.
Andhra Recurring Deposit
An RD in Andhra Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to an Andhra Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Key Features of Andhra Bank RD Account
- Allows you to safely deposit small amount of money on a regular basis
- Ideal for people with a steady income who may not be able to spare enough money for the minimum amount to open an FD.
- Flexible tenure – you can choose tenures which can range from a few months to several years depending on your financial goal
- Attractive interest rates: Offers a higher rate of interest than a savings account and similar to an FD account
- Is a safe, low-risk form of investment
- Quick liquidity options and access to your funds in times of need with nominal penal charges.
Types of Recurring Deposits Offered by Andhra Bank:
Regular Recurring Deposit:
- No cap on maximum amount
- Period of RD: 6 months to 120 months
- Preferential interest rate for senior citizens
- TDS on Interest is applicable
- Nomination facility available
- Premature Closure of RD Allowed
- Interest is compounded quarterly
- Penal charges apply for closure within 6 months
- Amount once opted cannot be altered by the depositor
Andhra Recurring Deposit Interest Rates
Andhra Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Andhra Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Andhra Bank RD interest rates including Andhra Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Andhra Bank, it is advisable to check with the bank directly.
Andhra Bank recurring deposit interest rates 2015 – 2016
The current RD Interest rate ranges from 6% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and most up to date interest rates as they fluctuate on a regular basis.
Andhra Bank Senior Citizen RD Interest Rates
Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.
How to apply for an RD in Andhra Bank:
You can download the Deposit form available on the Andhra Bank website and submit the filled-in application form along with the required documents. Alternatively, you can visit your nearest branch directly and have a bank representative help you with your savings needs.
Andhra Bank Recurring Deposit Calculator:
Calculating the maturity amount and the interest earned on your investment can be tedious and time-consuming. In such instances, you can make use of the Andhra Bank Deposit Calculator to help compute the interest and the maturity earned on your invested amount. Using an the Calculator is easy— you need to enter the installment amount you want to invest monthly, the duration, the interest rate, choose the kind of deposit and the calculator will provide the maturity amount that you get at the time of maturity of the Recurring Deposit. Using an RD calculator helps you find out how much you need to save. You can try various amounts and opt for the one that helps achieve your financial goal and suits your budget.
Andhra Bank RD FAQs
Who is eligible to open an RD account with Andhra Bank?
Individuals (singly or jointly), minors who have attained the age of 10 years and above in his/her own name (proof of age required), minors below the age of 10 years under guardianship of Natural/legal guardian, proprietorship/partnership firm, commercial organization, company / corporate body, HUFs, association, club, society, trust or religious/charitable educational institutions, etc are eligible to open RD accounts. Illiterate and blind persons can also open accounts.
What is the minimum deposit period?
The minimum deposit tenure is 6 months and can go up to as high as 120 months.
How do I apply for a regular recurring deposit?
You can visit your nearest branch and submit the Deposit Account form. Forms are available on the website.
What is the documentation required to open an RD account?
You will require the following documents:
- Filled-in application form
- Passport size photograph
- Proof of residence, PAN Card, ID Proof
- Any other KYC documents as required by the bank
Is there any penalty for closing the RD prematurely?
Yes, nominal penal charges apply as follows if you close the RD account within 6 months:
- Rs.10 where the balance outstanding is less than Rs.100
- Rs.20 where the balance outstanding is between Rs.100 to Rs.1000
- Rs.50 where the balance outstanding is more than Rs.1000