Andhra Bank and Corporation Bank have been merged under Union Bank of India. Visit our Union Bank of India RD Interest Rates page for more details.
The Andhra Bank Recurring Deposit (RD) scheme, now merged with Union Bank of India, offers a safe and convenient way to save small amounts regularly with a guaranteed interest rate. It is ideal for those who want a disciplined approach to saving without exposing their money to market risks.
Read the article till the end to learn about Andhra Bank RD interest rate, eligibility, opening process and more.
The table below provides the highlight of Andhra Bank recurring deposit scheme:
Tenure | 6 months to 10 years |
Senior Citizen Interest Rates | 4.00% to 7.80% |
General Public Interest Rates | 3.50% to 7.30% |
Highest Rates for Public | 7.30% |
Minimum Deposit Amount | Rs.100 |
Highest Rates for Senior Citizens | 7.80% |
Following table provides Andhra Bank RD interest rates for 2024 for deposits below Rs.3 crore:
Tenure | Interest Rates for the General Public (per annum) |
7 to 14 days | 3.50% |
15 to 30 days | 3.50% |
31 to 45 days | 3.50% |
46 to 90 days | 4.50% |
91 to 120 days | 4.80% |
121 to 180 days | 5.00% |
181 to 332 days | 6.35% |
333 days | 7.00% |
334 to less than 1 year | 6.35% |
1 year | 6.80% |
More than 1 year to 398 days | 6.80% |
399 days | 7.00% |
400 days to 455 days | 6.60% |
456 days | 7.30% |
457 days to 2 years | 6.60% |
More than 2 years to 996 days | 6.60% |
997 days | 6.40% |
998 days to less than 3 years | 6.60% |
3 years | 6.70% |
3 years to 5 years | 6.50% |
More than 5 years to 10 years | 6.50% |
The following table provides the Andhra Bank of India RD interest rates for senior citizens for deposits less than Rs.3 crore:
Tenure | Interest Rates for Senior Citizens (per annum) |
7 to 14 days | 4.00% |
15 to 30 days | 4.00% |
31 to 45 days | 4.00% |
46 to 90 days | 5.00% |
91 to 120 days | 5.30%. |
121 to 180 days | 5.50% |
181 to 332 days | 6.85% |
333 days | 7.50% |
334 to less than 1 year | 6.85% |
1 year | 7.30% |
More than 1 year to 398 days | 7.30% |
399 days | 7.50% |
400 days to 455 days | 7.10% |
456 days | 7.80% |
457 days to 2 years | 7.10% |
More than 2 years to 996 days | 7.10% |
997 days | 6.90% |
998 days to less than 3 years | 7.10% |
3 years | 7.20% |
3 years to 5 years | 7.00% |
More than 5 years to 10 years | 7.00% |
Andhra Bank, after merging with Union Bank of India, offers two major types of recurring deposit accounts for the general public and senior citizens, which are as follows:
The Monthly Plus Recurring Deposit Scheme is a flexible deposit scheme where you can deposit amounts conveniently. You must declare the initial deposit amount at the time of your RD account issuance, which is considered the core amount. You are allowed to increase the monthly amount up to 10 times.
You can later also reduce the existing monthly amount. However, it should never be less than the core amount. You are also allowed to deposit more than once in a month, within a maximum number of 10 deposits monthly.
The minimum deposit amount is Rs.100 and the maximum amount is Rs.1,00,000. No penalty is charged for late or missed instalments. Nomination and loan facility is available in this scheme. Premature closure of this account is also allowed under this scheme as per the norms of the bank.
The Cumulative Deposit Scheme enables you to make monthly deposits with lower amounts. The minimum deposit amount is Rs.50. No penalty is charged for late or missed instalments. Premature closure of this account is also allowed under this scheme as per the norms of the bank.
Andhra Bank RD interest is compounded quarterly. The formula used for calculating RD maturity and interest rates is:
A = P x (1 + r/n) ^ (n x t)
Here:
For example, if you invest Rs.5,000 per month for two years at a 6.60%, your final maturity amount would be around Rs.1,28,560, thanks to the power of compound interest. Following is the calculation:
A = 5000 x (1 + 0.066/4) ^ (4 x 24)
A = Rs.1,28,560
Interest accumulated = Rs.8,560
Use our Union Bank RD Calculator to easily calculate your RD interest and maturity amount in seconds.
The eligibility criteria for opening an RD account in Andhra Bank are as follows:
To comply with RBI’s KYC norms, depositors must submit the following documents while opening an RD account:
Opening an Andhra Bank (now Union Bank of India) Recurring Deposit (RD) account is simple and can be done either online or by visiting the bank branch. Here is a guide for both methods:
Online Application
Once you receive a confirmation message on your registered mobile number and email ID after the completion of your application process, your specified instalment amount will be debited accordingly.
Offline Application
Once you complete the process, the bank shall process your RD account application within a stipulated time.
Closing an Andhra Bank (now Union Bank of India) RD account can be done by following a simple process:
Below are the key benefits of Andhra Bank Recurring Deposit (RD) account:
Premature withdrawals are allowed under the Andhra Bank RD schemes without any penalty charges. Thus, customers can withdraw money from Andhra Bank FD accounts in case of emergencies without paying an extra penalty.
Andhra Bank's Recurring Deposit (RD) schemes for 2024 provide a reliable and flexible way to save regularly and grow your wealth over time. Andhra Bank’s RD schemes are an excellent choice for individuals looking to build disciplined savings while ensuring safety, stability, and guaranteed returns.