Bandhan Bank Recurring Deposit Interest Rates
Mr. Imran is a senior retired businessman who has always had a habit of saving money towards investment policies. But now that he has retired, he is wondering which policy to invest in regularly where he will get the maximum benefits.
From his research, he learns about Recurring Deposit accounts and how they offer extra 0.5% interest for senior citizens. He decides to open a Bandhan Bank Recurring deposit account and learns about its interest rate. Here is what he discovered:
Bandhan Bank Interest rates
Bandhan Bank offers recurring deposit accounts that can be opened with a minimum amount of Rs 100 for a tenure ranging from 6 months to 10 years. The minimum amount can be deposited in multiples of Rs 25. The interest rates range from 4.50% p.a to 5.25% p.a for general citizens and additional interest of 0.75% p.a is offered to senior citizens. Loans facility is available after 6 months of opening the account against the RD account in Bandhan Bank. Nomination for the maturity amount can also be made. Passbook facility is also available with a recurring deposit account.
The detailed interest rates are given below:
|Tenure||General Rates||Senior Citizen Rates|
|6 months to 364 days||4.50 %||5.25 %|
|1 year to 18 months||5.50 %||6.25 %|
|18 months 1 day to 1 year 364 days||5.50 %||6.25 %|
|2 years to 3 years||5.50 %||6.25 %|
|3 years 1 day to 5 years||5.25 %||6.00 %|
|5 years to 10 years||5.00 %||5.75 %|
Note: These interest rates have last been updated on Nov 10, 2021.
Bandhan Bank Short Term Recurring Deposit Interest Rates
A Recurring deposit account added for a period from 6 months to less than 1 year falls into the short-term bracket. The rate of interest offered by Bandhan Bank to general citizens is 4.50 % p.a. Senior citizens are offered a rate of interest of 5.25 % p.a.
Bandhan Bank Medium Term Recurring Deposit Interest Rates
A Recurring deposit account added for a period from 1 year to less than 3 years falls into the medium-term bracket. The rate of interest offered by Bandhan Bank to general citizens is 5.50 % p.a. Senior citizens are offered a rate of interest of 6.25 % p.a.
Bandhan Bank Long Term Recurring Deposit Interest Rates
A Recurring deposit account added for a period that ranges between 3 years and 10 years fall into the long-term bracket. The rate of interest offered by Bandhan Bank to general citizens is between 5.25% p.a and 5.00% p.a. Senior citizens are offered a rate of interest between 6.00% and 5.75% p.a.
Factors Affecting Bandhan Bank Recurring Deposit Rates
The factors that affect the interest rates of recurring deposit accounts are as follows:
- Reserve Bank Of India (RBI) policies – Changes in Cash Reverse Ratio (CRR) and repo rate made by the RBI affect interest rates of all banking instruments including recurring deposits.
- Recession – During times of recession, RBI releases funds in the market and hence surfaces liquidity in the market. Because of high liquidity and low credit demand in the market, banks reduce their rates on RD.
- Inflation- Inflation has a positive effect on interest rates. RD interest rates during periods of inflation.
- The current state of the economy in India- In times when the economy is booming, people are inclined to take larger credits to fulfill their personal and business needs. In times of high credit demands, banks offer higher interest rates to collect more funds through recurring deposits.
Deciding Factors for Interest Rates
The parameters which decide the interest rates and ultimately the maturity amount are as follows:
- Deposit amount- the initial amount deposited during the opening of the account. Higher interest rates may be offered on higher deposits. The minimum deposit for opening an RD account in Bandhan bank is Rs. 100.
- Rate of interest- A higher rate of interest is offered on longer-term RD accounts by Bandhan bank and a lower rate of interest is offered on shorter-term RD accounts by Bandhan bank.
- Tenure – Lower interest rates are offered for a shorter tenure and higher interest rates are offered for a longer tenure.
How can a person open a recurring bank account in Bandhan Bank?
There are various ways of opening a recurring bank account with Bandhan bank. These include visiting the bank’s official website, visiting the nearest Bandhan Bank branch, or by calling 033-6633 3333 or 1800 258 8181.
Is premature withdrawal allowed in RD of Bandhan Bank?
Yes, premature withdrawal is allowed but a nominal amount of penalty may be withdrawn as per the bank’s norms. Partial withdrawal is not allowed.