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.
Allahabad Bank Fixed deposit interest rates
|Tenure||FD Rates||Senior Citizen FD Rates|
|7 days to 14 days||4.00%||–|
|15 days to 29 days||4.00%||–|
|30 days to 45 days||4.50%||–|
|46 days to 60 days||5.50%||–|
|61 days to 90 days||6.00%||–|
|91 days to 179 days||6.00%||–|
|180 days to 269 days||6.25%||–|
|270 days to 364 days||6.50%||–|
|1 year to 1 year 11 months 29 days||6.50%||–|
|2 years to 2 years 11 months 29 days||6.50%||–|
|3 years to 4 years 11 months 29 days||6.50%||–|
|5 years to 10 years||6.50%||–|
Note: Senior citizens are not offered any special rates.
Allahabad Bank FD: Special Features
- Nomination facility is available to any family member or spouse 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 25,000 needs to be made for a duration of 1 year.
- Depositors can withdraw money anytime during the deposit tenure in multiples of Rs 5000
- Competitive interest rates are offered against all FD schemes
- Easy and fast liquidity options are available.
- Facility of account auto renewal is available upon maturity
- You can choose to get interested monthly, quarterly or annually based on your preference.
Allahabad Bank FD: Is it the best way to save?
Whenever there are excess funds involved people often think of investing in fixed deposit schemes. Allahabad bank offers attractive rates over various deposit periods with the flexibility of earning interest monthly, quarterly or at the end of maturity. However, it is advisable to explore saving options apart from fixed deposits which are can earn higher returns.
One such option is investing in mutual funds. The advantage of investing in mutual funds over fixed deposits primarily is that they are managed by professional fund managers who have a good sense of market trends and make sure you get the highest returns. This mitigates the risk that mutual funds come with to a large extent. The return rates for fixed deposits are fixed for a particular deposit tenure however in case of mutual funds you can get almost 2x more returns in a positive market.
Allahabad Bank FD: Eligibility Criteria
The following groups and individuals are eligible to open an FD account with Allahabad Bank
- Joint accounts for 2 or more individuals
- Partnership firms
- 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
Allahabad Bank: Premature Withdrawal
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 less than 15 days. However, in-case you need to prematurely withdraw funds after 15 days, applicable penalty amount will be levied.
Tax benefits on Allahabad bank fixed deposit
For the purpose of tax saving, Allahabad bank offers term deposit scheme for “ Single holder Type Deposits” and “Joint holder type deposits” with a minimum lock-in period of 5 years. No premature withdrawal is allowed in tax saving deposits and the applicable rate of interest is 8.75% per annum. Individuals, minors, and HUFs are eligible for this. You can go for this fixed deposit scheme to avail tax benefits under section 80C of the Income Tax Act,1961.
However it is important to note here that in case of fixed deposits, tax levied is dependent on the tax bracket you fall into, irrespective of FD tenure. If the interest earned on your fixed deposit is more than Rs 10,000, TDS deduction of 10% would be deducted by the bank. TDS certificate will be provided by the bank upon deduction.
Mutual funds have an edge over fixed deposit in this regards as tax payable on mutual funds depends on the category. For example, return on equity funds like Equity Linked Savings Scheme (ELSS) are tax free and upto 1.5 lakh can be claimed under section 80C of the Income Tax Act,1961.Also , long term capital gains on equity mutual fund units held for more than 12 months are tax exempt . They offer a higher capital appreciation potential and a smaller lock in period of 3 years. Hence we can say investing in Mutual funds is viable tax saving option.
Documents required to open Allahabad bank FD account
1. Identity proof
- PAN card
- Voter ID card
- Driving licence
- Government ID card
- Photo ration card
- Senior citizen ID card
2. Address proof
- 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 account.