8 Mins

Introduction

Bandhan Bank offers five different types of FD schemes with varying interest rates, tenure and minimum investment levels. The interest of Bandhan Bank FDs is higher than their savings account. The minimum and maximum investment tenure for Bandhan Bank FD is seven days and ten years, respectively. The FD also allows premature withdrawal and loan and overdraft facility on the investment. In this article, we have covered Bandhan Bank FDs in detail.

Bandhan Bank FD interest rates 2020

The below table shows the current FD interest rates offered by Bandhan Bank for different tenures.

Bandhan Bank fixed deposit rates vary between 3% to 6% for a tenure of 7 days to 10 years for regular citizens. For senior citizens, the FD rates vary between 3.75% to 6.75%. The FD rates of Bandhan Bank are higher than their savings account rates. The FD interest rate for senior citizens is higher by 0.75% than regular interest rates.

The highest Bandhan Bank FD rate is 6% for regular citizens for a tenure of 18 months to 2 years. For the same tenure, for senior citizens, the interest rate is 6.75%, which is the highest FD rate. Investors can estimate their returns from Bandhan Bank FDs using a fixed deposit calculator.

Bandhan Bank FDs interest is taxable as per investor’s income tax slab rate. Moreover, if the interest income exceeds INR 40,000 per annum (INR 50,000 per annum for senior citizens), then a TDS of 10% if charged. The TDS rate will be 20% if the PAN card details aren’t provided.

TenureRegular Fixed Deposit Interest RatesSenior Citizen Fixed Deposit Interest Rates
7 days to 14 days3.00%3.75%
15 days to 30 days3.00%3.75%
31 days to 1 month 29 days3.50%4.25%
2 months to 2 months 29 days3.50%4.25%
3 months to 5 months 29 days3.50%4.25%
6 months to 364 days5.75%6.50%
18 months 1 day to 1 year 364 days6.00%6.75%
1 year 1 day to 18 months5.75%6.50%
2 years to 2 years 364 days6.00%6.75%
3 years to 4 years 364 days5.75%6.50%
5 years to 10 years5.75%6.50%
Note: Bandhan Bank Fixed Deposit rate is revised periodically

Key Features of Bandhan Bank Fixed Deposit

Bandhan Bank offers fixed deposit schemes at attractive interest rates that help the savings grow multifold. The bank offers schemes for long and short term goals. Also, depositors enjoy the flexibility to withdraw the money in case of emergencies. Following are the key features of Bandhan Bank fixed deposits:

Tenure

The fixed deposit tenure ranges between 7 days to 10 years. Once the FD has commenced, it is difficult to change the tenure of the existing FD. However, one can withdraw their FD investment and start a fresh FD with the new and desired investment tenure.

Minimum and Maximum Deposit Amount

The minimum amount of investment for Bandhan Bank FDs depends on the type of FD chosen. Below is the minimum investment for different types of FDs.

  • Standard FD – INR 1,000
  • Premium FD – INR 2 crore
  • Tax saver FD – INR 1,000, maximum is INR 1,50,000 per annum
  • FD advantage – INR 1,000
  • Dhan Samriddhi FD – INR 5,000

Bandhan Bank Fixed Deposit Rate

Bandhan Bank FD offers interest rates in the range of 3.00% p.a to 6.00% p.a. Depositors can choose the interest payout frequencies.

Preferential Interest Rates

The bank offers preferential interest rates (additional 0.75%) to senior citizen depositors. The interest rates range between 3.75% to 6.75% for senior citizen depositors.

Eligibility

All resident individuals, minors, NRIs, HUFs, partnership firms are all eligible to invest in Bandhan Bank FDs.

Documents Required

To invest in Bandhan Bank FDs, one would require the following documents.

  • Passport size photos
  • PAN Card
  • Address proof (Aadhar Card, Voter ID, Passport, electricity bill etc.)
  • Identity proof (Aadhar Card, Pan Card, Driver’s license)
  • Form 15H or form 15G.

Additional Payments

No, once the FD commences, one cannot invest an additional amount in the existing FD. However, the investor can always invest the additional amount in a fresh FD.

Tax and TDS

Investment in Bandhan Bank Tax Saver Fixed Deposit qualifies for tax saving under Section 80C of the Income Tax Act, 1961. Investors can claim their tax benefit while filing tax returns. All other Bandhan Bank FDs do not qualify for tax saving.

The interest that one earns on their Bandhan Bank term deposit investments is taxable. The tax rate varies as per the depositor’s income tax slab rates. Furthermore, the bank cuts a TDS of 10% in case the interest income exceeds INR 40,0000. For senior citizens, the TDS is cut when the interest exceeds INR 50,000. Moreover, the TDS rate of 10% is applicable only if the depositor submits the PAN details to the bank. If the PAN card details aren’t submitted, then the TDS rate is 20%.

To determine if the interest income from Bandhan Bank term deposit is above or below the TDS threshold limit, one can use a bank fixed deposit calculator available online. Also, to estimate the tax liability one can use the Income Tax Calculator. Scripbox’s online Income Tax Calculator helps in determining tax liability.

Safety

Under the Deposit Insurance Scheme of RBI, DICGC insures all Bandhan bank deposits up to INR 5,00,000.

Premature Withdrawal and Premature Closure

Bandhan Bank offers premature or early withdrawal of the deposit at a penalty. The penalty charges vary with different FDs and tenures. No early withdrawal is allowed on tax saving FDs.

Nomination Facility

Depositors can nominate beneficiaries for their Bandhan Bank FDs.

Auto-Renewal

Bandhan Bank offers an auto-renewal facility for the deposits.

Convenience

One can open a Bandhan bank FD account through various channels such as Internet banking or phone banking or by visiting the nearest bank branch.

Loan against FD and Overdraft

Bandhan Bank offers loans against their fixed deposits. This helps the depositors to meet their liquidity requirements without breaking the deposit. Investors can get up to 90% of the loan amount for the interest of 1.5% to 2% above the FD interest rate. Investors have to repay the loan within three years. Loan facility is only available for Bandhan Bank FDs.

Loans such as loan against property (home loan), business loan, education loan, etc., can be taken against an FD. One can always calculate their loan EMI using the loan EMI calculator. The loan EMI calculator works as a personal loan EMI calculator, a home loan EMI calculator and car loan EMI calculator. The investor can also use this EMI calculator in multiple scenarios by changing the personal loan interest rates, home loan interest rate and car loan interest rate.

PAN Card

Details of PAN card isn’t mandatory to open a Bandhan Bank FD account. However, there are a few implications for this.

  • The rate of TDS that will be cut if interest income exceeds INR 40,000 is 20%, instead of 10% as per the regulations of Section 206AA.
  • Bandhan Bank will not issue a TDS certificate.
  • The bank does not issue any certificate for TDS
  • All exemption certificates, including Form 15G/H, will be invalid.

Types of Fixed Deposit Schemes offered by Bandhan Bank

  • Premium Fixed Deposit
  • Standard Fixed Deposit
  • Tax Saver Fixed Deposit
  • Advantage Fixed Deposit
  • Dhan Samriddhi Fixed Deposit

Types of Fixed Deposit Schemes: In Detail

Premium Fixed Deposit

Premium Fixed Deposits offer preferential interest rates to high-value depositors. Also, depositors can avail loan or overdraft or can foreclose the deposit in case of emergencies.

  • Deposit Tenure: Ranges between 7 days to 10 years
  • Deposit Amount: Minimum deposit INR 2 crore and above

Standard Fixed Deposit

An individual can invest their idle savings in the Standard Fixed Deposit and meet their goals faster. The scheme offers better interest rates than the savings account. It also provides loan and overdraft facility in case of emergencies against the deposit amount.

  • Investment: Short term or long term
  • Deposit Tenure: Ranges between 7 days to 10 years
  • Deposit Amount: Minimum deposit INR 1,000 and in multiples of Re 1 thereafter
  • Interest payout: Monthly or quarterly payouts

The scheme allows partial withdrawal or premature closure and also has automatic renewal facility. Additionally, the bank issues TDS certificates as per the Income Tax Act.

Tax Saver Fixed Deposit

Depositors can park their savings into the Tax Saver fixed deposit and enjoy dual benefits – high-interest rates and tax benefits. Deposits up to INR 1,50,000 into this fixed deposit qualify for tax deduction under Section 80C of the Income Tax Act.

  • Lock-in period: 5 years to 10 years
  • Minimum Deposit Amount: INR 1,000
  • Maximum Deposit Amount: INR 1,50,0000

The deposit scheme has a lock-in period, and hence one can’t close prematurely or withdraw the deposit amount.

Advantage Fixed Deposit

The Advantage Fixed Deposit gives depositors the advantage of compounding interest. One can realise their goals and dreams faster. Depositors can avail loan and overdraft facility against their deposit amount. Also, the scheme allows partial withdrawal or premature closure in case of emergencies. Furthermore, there is an option for the auto-renewal of the deposits. The bank also issued TDS certificate as per the Income Tax Act.

  • Deposit Tenure: Ranges between 6 months to 10 years
  • Deposit Amount: Minimum deposit INR 1,000 and in multiples of Re 1 thereafter

Dhan Samriddhi Fixed Deposit

The scheme offers faster growth in the shortest time. The deposit amount grows faster with compound interest being reinvested into the scheme. This fixed deposit is a growth-oriented scheme that helps in meeting financial goals such as marriage, education, travel, etc. in the shortest time. Depositors can open a single or joint account. Also, the fixed deposit offers a loan or overdraft facility and auto-renewal facility. Furthermore, the bank issues TDS certificates as per the Income Tax Act.

  • Deposit Tenure: Ranges between 6 months to 10 years
  • Deposit Amount: Minimum deposit INR 5,000

Does Bandhan Bank offer Recurring Deposits?

Yes, Bandhan bank offers recurring deposit schemes. The scheme helps in growing money slowly but steadily. Through this scheme, one can set aside a small amount every month and save towards achieving their financial goals.

TenureGeneral RatesSenior Citizen Rates
6 months to 364 days5.40%6.15%
1 year to 18 months6.75%7.50%
18 months 1 day to 1 year 364 days6.75%7.50%
5 years to 10 years6.50%7.25%
2 years to 3 years6.75%7.50%
3 years 1 day to 5 years6.60%7.35%
Note: Bandhan Bank revises RD interest rates periodically