Andhra Bank Fixed Deposit (FD) Rates

Updated on:  

08 min read

Andhra Bank and Corporation Bank have been merged under Union Bank of India. Visit the Union Bank of India FD Interest Rates page for more details.

Here is all the information you must know about fixed/term deposit schemes offered by Andhra Bank.

Latest Update

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.

Fixed Deposit Interest Rates 2021 of Andhra Bank

Here is the table of fixed deposit tenures available and the corresponding interest rates effective from 1 September 2020.

Deposit TenureInterest Rate for Regular Customers (% p.a.)
7 to 14 Days3.00
15 to 30 Days3.00
31 to 45 Days3.00
46 to 90 Days3.75
91 to 120 Days4.25
121 to 180 Days4.30
181 Days < 1 Year4.50
1 Year5.25
>1 Year to 3 Years5.25
>3 Years to 5 Years5.30
>5 Years to 10 Years5.40

Different Types of Andhra Bank FD Schemes

  • AB Fixed Deposits:

    The minimum deposit tenure for the account is seven days, and the minimum deposit sum is Rs.1 lakh. Simple interest will be paid on maturity or a quarterly basis as per the depositor’s choice. This is the regular fixed deposit account offered by the bank.

  • AB Freedom (Flexi) Deposit Scheme:

    The account is a combination of savings account and term deposit account. The account comes with an auto-sweep and auto-reverse sweep facilities. You have to maintain a minimum of Rs.5,000 in AB Freedom SB Account. An amount over Rs.25,000 in the SB account will be transferred to the term deposit account in multiples of Rs.1,000 through an auto-sweep facility. The deposit term can range from 15 days to 12 months. Interest will be paid every quarter for the units converted to a term deposit.

  • AB Money Time:

    AB Money Time is a monthly income deposit scheme that contributes as a source of income to customers through monthly payouts. The interest payout will begin at the end of the deposit’s maturity period. Minimum deposit amount for this account is Rs.25,000 and the minimum period is one year and three months and can go up to 120 months.

  • AB Tax Saver:

    This tax-saving fixed deposit scheme comes with a lock-in period of five years. Customers can get income tax benefits under Section 80C by depositing money in this account.

  • AB Kalpataruvu Deposits:

    It is a cumulative term deposit account with a minimum deposit amount of Rs.100. No maximum limit on deposit is applicable. The deposit tenure can be from six months up to 10 years. Interest gets compounded quarterly and is paid on maturity.

  • AB Smart Choice:

    The minimum deposit sum for this account is Rs.1 crore. The deposit period can be from seven days up to 179 days. Loans and overdraft facilities are available under this scheme. No penalty on premature withdrawal as long as the deposit is retained for a minimum of seven days.

Andhra Bank FD Special Features and Benefits

  • The minimum deposit period is seven days for regular FD schemes.
  • The minimum deposit amount starts at Rs.100 and varies based on the scheme selected.
  • Premature withdrawal is allowed subject to the scheme chosen and other conditions.
  • Additional interest will not be paid for staff, retired staff, and senior citizens under specific schemes.
  • Nomination facility is available.

Basic Eligibility Criteria for Andhra Bank FD

  • Individuals
  • Two or more individuals forming joint accounts
  • Hindu Undivided Families (HUFs)
  • Clubs
  • Associations
  • Trusts
  • Hospitals
  • Schools and Colleges
  • Minors

There may be exceptions and additions based on the scheme selected.

Tax Benefits on Andhra Bank Fixed Deposit

Andhra Bank offers ‘AB Tax Saver’ scheme that provides a tax benefit to taxpayers as per Union Government Notification No.203/2006 dated 28.07.2006. Individuals and HUFs (IT assessees having PAN) are eligible to get the benefits of the scheme.

The deposit amount for this scheme has an upper limit of Rs.1.5 lakh per financial year. The lock-in period for this account is five years. Depositing money in this scheme will allow you to claim income tax deduction under Section 80C of the Income Tax Act, 1961.

In the case of fixed deposits, the tax levied is dependent on the tax bracket you fall into irrespective of factors, such as the interest rate. If the interest earned on your fixed/term deposit is more than Rs 40,000 during the financial year, the bank deducts tax at source at 10%. This rate has been reduced to 7.5% due to COVID-19 pandemic during the period from May 2020 to March 2021.

FD Interest Rate Calculator

Check the returns you may receive from Andhra Bank FD schemes with our easy-to-use FD calculator page.

Frequently Asked Questions (FAQs)

Is partial withdrawal allowed?

Partial withdrawal is allowed for some schemes. For example, in the case of AB Freedom (Flexi) Deposit Scheme, the deposit gets broken in the multiples of Rs.1,000 on a last-in-first-out basis in the case of partial withdrawals. The remaining balance in the account continues to earn interest.

Do I receive a deposit certificate when I subscribe for a term deposit scheme?

You may or may not receive a deposit certificate based on the scheme you choose. When you subscribe to AB Freedom (Flexi) Deposit Scheme, a deposit certificate will not be issued.

Is the nomination facility available for all deposit schemes?

Most of the deposit schemes offers nomination facilities.

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