Allahabad Bank Fixed Deposit (FD) Interest Rates 2025

Allahabad Bank has been merged under Indian Bank. Visit the Indian Bank FD Interest Rates page for more details.

Investment in a fixed deposit scheme is often considered safer as compared to investing in other investment options like shares or money markets. Fixed deposit schemes allow people to invest money for a stated period of time post which a fixed rate has to be paid until the end of the deposit period. Allahabad Bank’s fixed deposit scheme offers great returns upon maturity.

RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.

Highlights for 2025 Fixed Deposit Scheme of Allahabad Bank

Interest Rate of FD for Allahabad Bank for the Year 2025

Special Features in Allahabad Bank FD

• Nomination facility is available to any family member or spouse who can be nominated to receive the final amount
• The minimum deposit period is 7 days and the maximum is 10 years.
• An initial deposit of Rs 1,000 needs to be made for a duration of 1 year.
• Competitive interest rates are offered against all FD schemes
• Easy and fast liquidity options are available.
• The facility of account auto-renewal is available upon maturity
• You can choose to get interested monthly, quarterly or annually based on your preference.

Is it the best way to save?

When people have excess funds, they often consider fixed deposit schemes. Allahabad Bank offers attractive rates across various tenures, with flexible interest payouts—monthly, quarterly, or at maturity. However, exploring alternative investment options like mutual funds can yield higher returns.

Mutual funds, managed by professional fund managers who track market trends, offer the potential for significantly higher returns compared to fixed deposits. While fixed deposit rates remain constant during the tenure, mutual funds can deliver up to twice the returns in a favorable market, despite carrying some risk.

Eligibility Criteria for Allahabad Bank FD

The following groups and individuals are eligible to open an FD account with Allahabad Bank

• Individuals
• Joint accounts for 2 or more individuals
• Partnership firms
• Trusts
• Minors
• Blind persons
• Illiterate persons
• Joint Hindu families
• Limited companies and partnership firms
• Municipalities and panchayats
• Charitable, religious, and educational institutions
• Associations, societies, clubs etc.
• Sole proprietary concerns

Premature Withdrawal of Allahabad Bank

Allahabad bank does not generally allow premature withdrawal of money before the end of tenure. The bank does not charge a penalty on the withdrawal of a unit if the deposit remains with the bank for a period of less than 7 days. However, in case you need to prematurely withdraw funds after 7 days, the applicable penalty amount will be levied.

Tax benefits on Allahabad bank fixed deposit

For tax-saving purposes, Allahabad Bank offers a term deposit scheme under "Single Holder Type Deposits" and "Joint Holder Type Deposits" with a lock-in period of 5 years. Premature withdrawal is not allowed, and the interest rate is 6.25% per annum. This scheme is available to individuals, minors, and HUFs and qualifies for tax benefits under Section 80C of the Income Tax Act, 1961.

However, taxes on fixed deposit interest depend on your tax bracket, regardless of tenure. If interest exceeds Rs. 10,000 annually, 10% TDS is deducted by the bank, which issues a TDS certificate.

Documents required to open Allahabad bank FD account

1. Identity proof

• Passport
• PAN card
• Voter ID card
• Driving licence
• Government ID card
• Photo ration card
• Senior citizen ID card

2. Address proof

• Passport
• Telephone bill
• Electricity bill
• Bank Statement with Cheque
• Certificate/ ID card issued by Post office

Types of Fixed Deposit offered by Allahabad Bank

• Fixed/Short Term Deposit– A standard FD scheme offered by Allahabad bank wherein customers are paid fixed interest amounts at regular intervals.
• Quarterly/Monthly Term Deposit– In this scheme, customers can choose to receive interest payments at monthly or quarterly intervals
• You can also choose to receive payment upon maturity of the account.

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