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Andhra Bank Recurring Deposit (RD) Interest Rates 2025

Q: What are the current RD interest rates offered by Andhra Bank for 2025?

Andhra Bank RD interest rates range from 5.75% to 7.25% for regular customers, with senior citizens receiving an additional 0.50% interest rate. Rates vary depending on the tenure. Check the Andhra Bank website for the latest updates.

Q: What is the tenure range for Andhra Bank RD accounts?

Andhra Bank offers RD tenures ranging from 6 months to 10 years.

Q: Do senior citizens get higher interest rates on Andhra Bank RDs?

Yes, senior citizens are eligible for an additional 0.50% interest rate on RD deposits.

By Mayashree Acharya

Updated on: Dec 20th, 2024

9 min read

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.

Highlights of 2025 Recurring Deposit Scheme for Andhra Bank

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%

2025 RD Interest Rates of Andhra Bank

Following table provides Andhra Bank RD interest rates for 2025 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%

Andhra Bank RD Interest Rate for Senior Citizens 2025

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%

Types of Andhra Bank RD Accounts

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:

Union Monthly Plus Recurring Deposit Scheme:
A flexible RD scheme where the initial deposit amount, declared at account opening, is the core amount. Monthly deposits can be increased up to 10 times the core amount or reduced but not below the core amount. Up to 10 deposits per month are allowed. The minimum deposit is Rs.100, and the maximum is Rs.1,00,000. The scheme offers no penalties for late or missed instalments, and features nomination, loan facilities, and premature closure as per bank norms.

Union Bank of India Cumulative Deposit Scheme:
Designed for smaller monthly deposits, with a minimum deposit amount of Rs.50. The scheme imposes no penalties for late or missed instalments and permits premature closure as per bank norms.

How to Calculate Andhra Bank RD Interest Rate?

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:

A = Maturity Amount
P = Principal Amount
r = Interest rate
n = Number of Times Interest is Compounded
t = Time Period

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.

Eligibility for Opening Andhra Bank RD Account

The eligibility criteria for opening an RD account in Andhra Bank are as follows:

Individuals
Hindu Undivided Families (HUFs)
Minors (with guardians)
Companies
Partnerships
Trusts
Clubs

Documents Required for Opening Andhra Bank RD Account

To comply with RBI’s KYC norms, depositors must submit the following documents while opening an RD account:

Proof of Identity: Passport, PAN card, voter ID, driving licence, or senior citizen ID card.
Proof of Address: Passport, utility bills, or bank statements.

How to Open an Andhra Bank 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

Log in to the Union Bank of India Netbanking portal.
Navigate to the option to open a Recurring Deposit account.
Enter the information as asked, including instalment amount, account number, tenure, etc.
Choose a nominee after checking the applicable interest rate.
Read the terms and conditions and tick the checkbox.
Click on the ‘Submit’ option to complete your RD account application process.

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

Visit your nearest Union Bank of India branch with your savings account details.
Navigate to the necessary authority member and ask for an RD account application form.
Fill in the application form by providing all the essential details including deposit tenure, instalment amount, payment mode, nominee etc.
Make your first deposit in cash or by using a cheque.
Submit the application form along with copies of the required documents to the branch officials.

Once you complete the process, the bank shall process your RD account application within a stipulated time.

How to Close Andhra Bank RD Account?

Closing an Andhra Bank (now Union Bank of India) RD account can be done by following a simple process:

Visit your nearest Union Bank of India branch with your RD account details.
Navigate to the necessary authority member and ask for an RD account closure form.
Fill in the required details. Please note that if the RD account has a joint holder, the closure accounts will need their signature and consent as well.
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.
Submit the form to the branch officials.

Benefits of Andhra Bank RD Account

Below are the key benefits of Andhra Bank Recurring Deposit (RD) account:

Small, Regular Contributions: Allows you to save small amounts periodically instead of a large lump sum like in fixed deposits.
Ideal for Steady Income Earners: Suitable for those with a stable monthly income who may not have a large amount to invest at once.
Flexible Tenure Options: Depending on your financial goals, you can choose from tenures ranging from 6 months to 10 years.
Safe, Low-Risk Investment: Your deposits are secure and not subject to market fluctuations, ensuring stable growth.
Guaranteed Returns: Interest is paid on maturity, providing predictable earnings without market risk.

Andhra Bank RD Premature Withdrawal Rules

Andhra Bank allows premature withdrawals from RD accounts without penalty charges, providing flexibility during emergencies. This ensures customers can access their funds from RD accounts without incurring additional costs.

The 2024 RD schemes offer a reliable and flexible way to save regularly and grow wealth steadily. With safety, stability, and guaranteed returns, these schemes are ideal for individuals seeking disciplined savings options.

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Frequently Asked Questions

What are the current RD interest rates offered by Andhra Bank for 2025?

Andhra Bank RD interest rates range from 5.75% to 7.25% for regular customers, with senior citizens receiving an additional 0.50% interest rate. Rates vary depending on the tenure. Check the Andhra Bank website for the latest updates.

What is the minimum deposit required to open an RD account with Andhra Bank?

The minimum deposit required to open an RD account with Andhra Bank is ₹100 per month.

What is the tenure range for Andhra Bank RD accounts?

Andhra Bank offers RD tenures ranging from 6 months to 10 years.

Do senior citizens get higher interest rates on Andhra Bank RDs?

Yes, senior citizens are eligible for an additional 0.50% interest rate on RD deposits.

How is interest calculated on Andhra Bank RD accounts?

Interest is compounded quarterly and credited at maturity along with the principal amount.

Can I prematurely close my RD account with Andhra Bank?

Yes, you can prematurely close your RD account. However, a penalty may be charged, and the interest will be recalculated based on the actual deposit period.

What happens if I miss an RD installment?

If you miss an installment, Andhra Bank may charge a penalty. Repeated defaults could result in reduced interest or closure of the account.

Can I open an RD account online with Andhra Bank?

Yes, Andhra Bank allows you to open an RD account online through Net Banking or the Andhra Bank Mobile App.

Is TDS applicable on the interest earned from Andhra Bank RD?

Yes, TDS is deducted if the interest earned in a financial year exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if eligible.

Can I take a loan against my RD with Andhra Bank?

Yes, Andhra Bank provides loans or overdrafts against RD deposits, typically up to 90% of the RD amount.

Does Andhra Bank provide auto-renewal for RD accounts?

No, Andhra Bank does not offer auto-renewal for RD accounts. Upon maturity, the amount (principal + interest) is credited to your linked savings account.

Can I partially withdraw funds from my RD before maturity?

No, partial withdrawals are not allowed. You must prematurely close the RD account to access the funds before maturity.

What documents are required to open an RD account with Andhra Bank?

For existing customers with updated KYC details, no additional documents are needed. New customers will need to provide proof of identity, address, and PAN card.

Are there any special RD schemes offered by Andhra Bank?

Andhra Bank occasionally offers special RD schemes with attractive interest rates or promotional benefits. Check their website or visit a branch for the latest offers.

Can I modify the deposit amount or tenure of my RD mid-term?

No, once an RD is created, the deposit amount and tenure cannot be changed. However, you can open a new RD with different terms if desired.

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About the Author

Mayashree Acharya

Senior Content Writer

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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