Regional Rural Banks (RRB) in India offer Gramin FDs to citizens of India. These banks are established by the Government of India to develop the rural economy by catering to their basic banking needs. There are 56 RRBs that offer Gramin Fixed Deposits. These FDs offer a higher interest rate than the commercial bank FDs. Hence providing a good alternative to people looking for safer investment options.
Gramin FDs are safe and guarantee returns in the form of interest. Their tenure ranges between 7 days and 1- year. The interest rates for Gramin FDs range between. 3%-7.5%. Investors can prematurely withdraw their deposits. They can also take a loan against their FD investments. The interest is taxable as per the income tax slab of the investors. Moreover, TDS will be applicable as per the IT guidelines.
Top Gramin Bank Fixed Deposit Interest Rates 2021
Check out the latest fd interest rates.
|Bank Name||Tenure||Interest Rates|
|Telangana Grameena Bank||7 days to 10 years||3.50% – 5.75%|
|Kerala Gramin Bank||7 days to 10 years||5.40% – 6.20%|
|Baroda Gramin Bank||7 days to 10 years||4.00% – 6.00%|
|Punjab Gramin Bank||7 days to 10 years||3.10% – 5.50%|
|Karnataka Gramin Bank||7 days to 10 years||3.00% – 5.65%|
|Uttarakhand Gramin Bank||7 days to 10 years||4.50% – 6.25%|
|Dakshin Bihar Gramin Bank||7 days to 10 years||3.10% – 5.30%|
|Maharashtra Gramin Bank||7 days to 10 years||3.00% – 5.20%|
|Saptagiri Grameena Bank||15 days to 10 years||3.60% – 5.50%|
|Chhattisgarh Rajya Gramin Bank||7 days to 10 years||3.00% – 5.50%|
|Pallavan Grama Bank||7 days to 10 years||4.50% – 7.15%|
|APGV Bank||7 days to 10 years||3.50% – 5.75%|
|Himachal Gramin Bank||7 days to 10 years||3.00% – 5.30%|
|Uttar Bihar Gramin Bank||7 days to 10 years||2.75% – 5.00%|
|Aryavart Gramin Bank||7 days to 10 years||3.25% – 5.30%|
|Sarva UP Gramin Bank||7 days to 10 years||3.00% – 5.50%|
|Assam Gramin Vikash Bank||7 days to 10 years||3.25% – 6.00%|
|Odisha Gramya Bank||7 days to 10 years||3.25% – 5.25%|
|Baroda Gujarat Gramin Bank||7 days to 10 years||2.90% – 5.15%|
|Mizoram Rural Bank||7 days to 10 years||2.90% – 5.50%|
|Meghalaya Rural Bank||7 days to 10 years||3.00% – 5.10%|
|Kaveri Grameena Bank||15 days to 10 years||5.25% – 7.30%|
|Utkal Grameen Bank||7 days to 10 years||2.90% – 5.40%|
|Jammu And Kashmir Grameen Bank||7 days to 10 years||3.00% – 5.25%|
Features of Gramin Bank Fixed Deposits
- Tenure: The tenure of Gramin FDs range between 7 days and 10 years.
- Interest rates: The interest rates for Gramin FDs vary with different banks. However, on average, they range between 3%-7% per annum. Also, senior citizens get an additional interest rate for their investment in Gramin FD. Check FD rates for all banks.
- Investment: The minimum investment in Gramin FDs is INR 1,000. However, there is no limit on the maximum amount of investment in Gramin FDs.
- Withdrawals: Banks allow premature withdrawals of Gramin FDs, however, with a penalty on the contracted interest rate.
- Eligibility: All Indian citizens, members of HUF, firms, local bodies, companies, and government departments can invest in Gramin FDs.
- Documents required: To open a Gramin FD, one would need a PAN Card, Aadhar Card, Driving License, Passport, Voter ID Card, and also a senior citizen card (if any).
- Loan against FD: banks allow investors to take a loan against Gramin FD. The limit on the loan, tenure, and loan interest rate depends on the bank.
- Nomination facility: A nomination facility is available for Gramin FD.
- Auto-renewal: The auto-renewal facility is available for Gramin FD.
How to open an FD Account in a Gramin Bank?
To open an FD account in a Gramin bank, one has to visit the bank’s branch. The below steps will help in opening an FD account in a Gramin Bank:
- Visit the Gramin bank branch in which one wishes to open their FD account.
- Fill the fixed deposit account opening form. Provide all the necessary personal information and other information. For example, name, address, contact number, PAN details, email id, type of account, nominee details, etc.
- Mention the desired FD tenure
- Attach a cheque for the amount the one wishes to open the FD account. However, one can also do the amount transfer through internet banking.
- Attach all the mandatory documents along with the account opening form.
- Next, the banker will verify all the details and documents.
- On successful verification, the banker will issue an acknowledgment slip.
Following are eligible to open an FD account in a Gramin Bank:
- Indian Citizen
- Hindu Undivided Family (HUF), companies, partnership firms, local bodies, any government department, etc.
Eligible individuals have to provide the following documents while opening the FD account:
- Aadhaar Card
- Driving License
- Passport size photographs
- Voter’s ID card
- Permanent Account Number (PAN) Card
- Any other firm/ company-related documents.
Frequently Asked Questions
A Gramin Bank is a Regional Rural Bank (RRB). They were established by the Government of India and are regulated by the Reserve Bank of India (RBI). These banks are jointly owned by the Government of India(GOI) (50%), Sponsor Bank (35%) and the concerned State Government (15%). They are set up under the provisions of the RRB Act 1976 to develop the rural economy by catering to their basic banking needs. There are 56 RRBs in India currently.
In India, as of May 2021, Chaitanya Godavari Grameena Bank has the highest FD interest rate at 6.85% per annum for a tenure of 12 months.
Account-holders can check their Gramin bank account balance by giving a missed call on the bank’s helpline number. The account balance details are sent an SMS on the registered mobile number by the bank. An individual can find the missed call number on the respective bank’s website.
Account-holders can also check their account balance at an ATM machine. One has to insert their ATM card into the machine, enter the ATM PIN and click on ‘Balance Enquiry’. The machine displays the account balance on the screen. Furthermore, one can print the balance information as a receipt.