Bandhan Bank RDs are investments that allow investors to save small amounts regularly. The bank has a tenure of 6 months to 10 years, and the interest rates vary with the tenure.
|Bandhan Bank RD Details|
|Interest Rates||4.50% – 7.50% p.a.|
|Tenure||6 Months – 10 Years|
|Minimum Deposit Amount||INR 100|
Bandhan Bank RD Interest Rates 2022
|Senior Citizen Rates||Normal Rates||Tenure|
|7.5||7||3 years to < 5 years|
|7.5||7||Above 18 months to < 2 years|
|7.5||7||2 years to < 3 years|
|7.5||7||1 year to 18 months|
|6.35||5.6||5 years to up to 10 years|
|5.25||4.5||6 months to < 1 year|
*Bandhan Bank RD Interest rates are percentage per annum for both normal and senior citizens
Bandhan Bank RD rates range between 4.50% to 7.00% p.a for regular citizens. For senior citizens, the RD rates range between 5.25% to 7.50%. One can estimate the returns from their Bandhan RD investment using the Bandhan Bank recurring deposit calculator. The RD rates of Bandhan Bank are higher than their saving account rates. The Bandhan Bank RD rate of interest differs based on the investor’s age, investment tenure, RBI policies and economic conditions in the country.
When investors earn interest from RD investment, it is taxable as per their income tax slab rates. Also, investors have to file this income under the head ‘Income from Other Sources’ while filing their income tax returns. Moreover, the bank has to deduct a TDS of 10% if the interest income exceeds INR 40,000 (INR 50,000 for senior citizens). Furthermore, this rate is applicable if the investor submits their PAN card details. Else, the TDS rate is 20%.
Bandhan Bank Recurring Deposits Features
- Tenure: The Bandhan bank recurring deposit tenure ranges between 6 months to 120 months, in multiples of 3 months
- Minimum and Maximum Deposit Amount: The minimum amount of investment in Bandhan bank RD is INR 100, and in its multiples thereafter. However, there is no limit on maximum investment.
- Deposit Rate: Bandhan Bank recurring deposit rate is in the range of 4.50% to 7.50% p.a. One can estimate the returns from RD investment using the recurring deposit calculator.
- Preferential Interest Rates: Bandhan bank offers preferential interest rates for senior citizens. Senior citizens are eligible for an additional 0.5% on their Bandhan RD investments. The Bandhan bank RD interest rates for them range between 5.25% – 7.50%.
- Tax and TDS: Bandhan bank RDs do not qualify for tax saving. The interest income that one earns from Bandhan bank RDs is taxable as per the individual’s respective income tax slab rates. Moreover, Bandhan bank deducts a TDS of 10% if the interest income per annum exceeds INR 40,000 (INR 50,000 for senior citizens). The 10% TDS is applicable only when PAN details are furnished; else the bank deducts TDS at 20%.
One can determine whether Bandhan bank RD interest income is above or below the TDS threshold limit using the Bandhan Bank RD Calculator. Also, investors can calculate their income tax liability using Scripbox’s Income Tax Calculator.
- Premature withdrawal: Bandhan bank allows investors to prematurely withdraw their recurring deposits. However, Bandhan bank charges a penalty depending on their banking norms. Usually, the charges are between 1-2%.
- Nomination Facility: Depositors can nominate beneficiaries for their Bandhan Bank RDs.
- Convenience: Opening and managing recurring deposit investments are easy and convenient through Bandhan bank’s online portal.
- Loan Facility: Bandhan Bank allows investors to take a loan after 3 months of RD account opening.
Requirements of Bandhan Bank RD Scheme
Eligibility: Following is the eligibility criteria for opening a Bandhan Bank RD account
- Resident Individuals, including minors
- Sole Proprietary firms
- Partnership firms
- Associations and trusts
The above entities must have a savings account with Bandhan Bank and NRIs must have an NRE or NRO account.
Deposit and account: One can open a Bandhan Bank recurring deposit account with a minimum investment of INR 100 and in multiples thereafter. However, there is no limit on the maximum investment amount for Bandhan Bank RD.
- PAN Card,
- Aadhar Card,
- Driving licence,
- Government ID card,
- Senior Citizen Card
- Utility bills,
- Bank statement with cheque,
- Certificate or ID card issued by the post office
Withdrawal: Bandhan Bank allows investors to prematurely withdraw their RD investment, however, with a penalty. The bank charges a penalty on the interest rate which varies depending on the banking policies. Usually, the penalty charges are between 1-2%.
Nomination: Bandhan Bank RDs have a nomination facility where the account holder can nominate beneficiaries.
Types of Bandhan Bank Recurring Deposit Schemes
Bandhan Bank offers the following recurring deposit schemes:
- Tenure: 6 months – 120 months (in multiples of 3 months)
- Minimum Deposit Amount: INR 100, and in multiples of it thereafter.
- Maximum Deposit Amount: No limit
- Tax Deducted at Source: Applicable
- Nomination Facility: Available
- Premature closure: Available, however, with a penalty of 1-2% depending on banking norms.
- Penalty for late deposits: If the instalment is delayed beyond the stipulated due date and grace days, then banks will charge a penalty as per their norms.
Difference between Bandhan Bank RD and FD
|Tenure||Highest RD Rates||Highest FD Rates|
|6 Months to 9 Months||5.25%||5.25%|
|9 Months to 1 Year||5.25%||5.25%|
|1 Year to 2 Years||7.50%||7.50%|
|2 Years to 3 Years||7.50%||7.50%|
|3 Years to 5 Years||7.50%||7.50%|
|5 Years to 10 Years||6.35%||6.35%|
Bandhan Bank RDs are considered a good investment for investors who can save small amounts of money regularly. Also, they are low-risk investments as they offer guaranteed returns. Therefore, investors who are looking for guaranteed returns from their investments can consider recurring deposits. However, one has to understand the taxes that they have to pay on interest earned on Bandhan Bank RD investments.
Frequently Asked Questions
The minimum deposit amount for Bandhan Bank RD is INR 100 per month. And, there is no maximum amount of investment in Bandhan bank RD.
Yes, one can open a Bandhan RD account on behalf of a minor.
One can open a Bandhan Bank RD account through offline and online modes. For online mode, one has to visit the Bandhan website. And for offline mode, one has to visit the nearest branch of Bandhan Bank.
To be able to invest in Bandhan Bank RD, one needs to have all valid documents. They need to have a Bandhan RD application form, duly filled and signed and passport-size photographs. For identity proof, they need a PAN card, Aadhar card, voter ID, and driving licence and for residence proof, they need an Aadhar card, utility bills, and a driving licence. For age proof, they need a birth certificate, matriculation certificate, and PAN card.
Yes, it is possible to renew a Bandhan Bank RD account. However, the renewal is possible as per Bandhan Bank norms and rules.