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Allahabad Bank has been merged under Indian Bank. Visit the Indian Bank RD Interest Rates page for more details.
Recurring deposit schemes are a wonderful way to build your savings over a period of time through regular monthly deposits. Not only do you save money but also earn interest on your deposits. Continue reading to see what Allahabad bank’s recurring deposit options have to offer.
|Investment period||RD rates for regular deposit||RD rates for Senior Citizens|
|180 days to 269 days||6.50%||–|
|270 days to 364 days||6.50%||–|
|1 year to 1 year 11 months 29 days||7.00%||–|
|2 years to 2 years 11 months 29 days||6.75%||–|
|3 years to 4 years 11 months 29 days||6.50%||–|
|5 years to 10 years||6.50%||–|
Saving a specific amount of money every month can lead to a substantial amount as an emergency fund in the long term.Recurring deposit options can be availed to do so. However, they are not the best saving option if wealth creation is the objective. Let’s see you plan on saving for your retirement. A Recurring Deposit with 6.5% interest rate may not give you the returns needed to create a substantial retirement fund. However, depositing the same amount in a Mutual Fund as SIP (Systematic Investment Plan) can help you achieve your financial goals.
Allahabad bank allows account holders to prematurely withdraw money but a nominal amount of penalty might be levied on based on the scheme chosen. If the amount deposited is less than Rs 1 crore than 1% penal interest would be charged and if the amount deposited is greater than Rs 1 crore then 4% penal interest would be charged. However, partial withdrawal of amount is not allowed.
All recurring deposits, including Allahabad bank recurring deposit, are taxable under the Income Tax Act 1961. The money that is invested in RD will be included in your yearly income and a TDS ( Tax Deducted at Source) of 10% is applicable on the interest earned ( If it is more than (if it is more than RS. 10,000 per year).To save TDS on your RD gains, you can fill either Form 15G or Form 15H.
Conditions for submitting Form 15G:
To open a recurring bank account with Allahabad Bank, you need to submit any one of the following.
1. Proof of identity
2. Address Proof
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