Allahabad Bank Recurring Deposit (RD) Rates

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

Allahabad Bank, now merged with the Indian Bank, provides effective Recurring Deposit (RD) schemes at attractive rates for different tenures. RD schemes are one of the favourable options when it comes to risk-free investments. Each scheme enables you to accumulate interest and principal once the tenure is completed. 

Read the article until the end to learn the significant details related to the Allahabad Bank RD interest rates.

Allahabad Bank Recurring Deposit Scheme Highlights for 2024

Here are the most important details of Allahabad Bank RDs you need to know:

Allahabad Bank RD Interest Rate 2024

The following table features the Allahabad Bank RD interest rates in 2024 for deposits of less than Rs. 3 crore:

Allahabad Bank Senior Citizen RD Interest Rate

Here are the Allahabad Bank senior citizen RD interest rates 2024 for deposits of up to Rs. 10 crore:

Types of Allahabad Bank RD Accounts

Allahabad Bank, now merged with Indian Bank, offers two major types of recurring deposit accounts for the general public and senior citizens. Given below is a brief overview of the two Allahabad Bank Recurring Deposit schemes:

Recurring Deposit (Regular) 

The regular RD allows you to grow your savings over time to meet your financial needs at the end of the tenure. Here are its features:

• Deposit Amount: Initial deposit of at least Rs. 100 and in multiple thereof up to Rs. 10 crore
• Tenure: 6 months to 10 years
• Facilities Available: Nomination, loan against RD and preclosure

Variable Recurring Deposit 

Variable RDs allow depositors to change the instalment amounts each month. Here are its features: 

• Deposit Amount: Initial deposit of Rs. 500 and in multiples thereof up to Rs. 1 lakh. Subsequent instalments can be up to Rs. 10 lakh per month. 
• Tenure: 3 years 
• Facilities Available: No penalty on delayed payments, nomination, loan and foreclosure

How to Calculate Allahabad Bank RD Interest Rate?

The Allahabad Bank RD interest rates are compounded quarterly, enabling you to earn interest on good returns.

The following is the formula used for RD interest calculations:

A = P x (1 + r/n) ^ (n x t)

Here:

'A' = Maturity Amount 

'P' = Principal Amount 

'r' = Rate of Interest 

'n’ = Compounding Frequency 

‘t’ = Time duration 

Example: Suresh opens an RD account in Allahabad Bank with a monthly deposit of Rs. 2000 for 24 months at an interest rate of 6.70%.

As per the formula, 

• P = Rs. 2000 
• r = 0.067
• n = 4
• t = 24

A = 2000 x (1 + 0.067/4) ^ (4 x 24)

A = Rs. 51,478

Interest earned = Rs. 3,478

Use our Indian Bank RD Calculator to easily calculate your RD interest and maturity amount in seconds.

Features of Allahabad Bank RD Interest Rates

Here are the features of Allahabad Bank RD rates:

• Minimum Deposit

You can open a recurring deposit with a monthly instalment of just Rs. 100. The upper limit is Rs. 10 crore, while the maximum limit of a single deposit in a day is Rs. 2 crore.

• Flexible Deposits 

Allahabad Bank Bank offers a special RD, where you can deposit variable monthly instalments. This facility comes with zero penalty on delayed payments. In addition, the bank offers special RDs for NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin).

• Interest Rates

Allahabad Bank Recurring Deposit interest rates are competitive in nature and go up to 7.10% for the general public and 7.60% for senior citizens. Even though the interest rates are subject to change, these give you attractive returns.

• Tenure

Allahabad Bank allows account holders to select a tenure at their convenience, ranging from 6 to 10 years. Also, the Allahabad Bank RD interest rates vary based on the tenure you choose.

• Penalty

Allahabad Bank does not charge any penalty for defaults or delays in monthly instalments for deposits below Rs. 5 lakh.

Eligibility For Opening Allahabad Bank RD Account

The eligibility parameters for opening an Allahabad Bank recurring deposit account are as follows:

• Resident Indian, NRI, PIO or HUF (Hindu Undivided Family) 
• Must be above 18 years of age
• In the case of minors, the account must be held by parents or guardians

Documents Required For Opening Allahabad Bank RD Account

You need to submit the following documents whenever you opt to open Allahabad Bank recurring deposit accounts:

• RD application form provided by the bank
• PAN card or Form 16 
• Identify proof (Voter ID, Aadhaar card, passport, driving licence, etc.)
• Address proof (Voter ID, ration card, utility bills, passport, etc.)
• Passport-size photographs
• Other documents (as requested by the bank)

How to Open Allahabad Bank RD Account?

Opening a Recurring Deposit account at the Allahabad Bank offers flexible options for offline and online processes. You can opt for one of them at your convenience. Go through the following process of opening an Allahabad Bank RD account:

Online Application

1. Login to the Indian Bank Net Banking website. 
2. Select the 'E-Recurring Deposit' option. 
3. Next, fill out the application form, link your savings account, and issue standing instructions to open an RD account.
4. After verifying the information, click ‘Continue’ to submit your application and set up the RD account.

Offline Application

1. Visit your nearest Allahabad Bank.
2. Ask for an RD account application form from the bank officials.
3. Fill in the application form by providing all the essential details including deposit tenure, instalment amount, payment mode, nominee etc.
4. Make your first deposit in cash or by using a cheque.
5. Submit the application form along with copies of the required documents to the branch officials.

How to Close Allahabad Bank RD Account?

Given below is the process to close an Allahabad Bank RD account:

1. Visit your nearest Allahabad Bank with your RD account details.
2. Obtain the RD account closure form and fill in the required details on the form. 
3. Attach the self-attested copies of the required documents with the closure form. These include KYC, PAN card, address proof, identity proof, RD account receipt, RD certificate, etc.
4. Submit the form to the branch officials.

Benefits Of Allahabad Bank RD Account

Here are the benefits of Allahabad Bank recurring deposit accounts:

• RD account is a secure, risk-free investment option for conservative savers.
• You can invest at regular intervals and get interest rates similar to those of an FD without depositing a lump sum.
• RD account inculcates a habit of saving regularly and helps to secure a financial future.
• Allahabad Bank offers flexible tenure options for account holders ranging from 6 months to 10 years.
• Allahabad Bank offers a variable recurring deposit scheme, allowing you to choose the amount you want to deposit every month.
• You are also allowed to choose nominees or opt for loan facilities with your Allahabad Bank Recurring Deposit accounts.

Allahabad Bank RD Premature Withdrawal Rules

The Allahabad Bank allows investors to withdraw their recurring deposit investment prematurely without penalty charges for deposits less than Rs. 5 lakhs. For deposits of Rs. 5 lakh and above, a 1% premature penalty is charged when the RD account is closed. 

Further, certain deposits, including those of staff and ex-staff and deposits of government bodies, corporations, and non-profitable institutions, are exempt from foreclosure/premature withdrawal charges. 

The Allahabad Bank recurring deposit schemes benefit all individuals, irrespective of their income levels or professions. With the competitive interest rates of the bank, you can be assured of getting handsome returns on your monthly investment, which eventually shall turn into a higher sum.