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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.
It is always good to have a rainy day fund to fall back on in case of emergencies. A good way of building up your savings is by investing in a recurring deposit scheme. With attractive recurring deposit options offered by Andhra bank, not only can you save money, but also earn interest on your monthly deposits over a period of time. Continue reading to see what the Andhra bank recurring deposit options have to offer!
|Investment period||RD rates for regular deposit||RD rates for Senior Citizens|
|6 months to 8 months 29 days||6.25%||6.75%|
|9 months to 364 days||6.25%||6.75%|
|1 year to 2 years||7.00%||7.50%|
|2 years 1 day to 3 years||6.50%||7.00%|
|3 years 1 day to 5 years||6.50%||7.00%|
|5 years 1 day to 10 years||6.50%||7.00%|
Saving a specific amount of money every month can lead to a substantial amount for the 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 7% interest rate may not give you the returns needed to create a decent retirement fund. However, depositing the same amount in a Mutual Fund as SIP (Systematic Investment Plan) can help you create the kind of wealth you are aiming for.
In case of premature withdrawal following penalty rates are applicable if the account is closed, before 6 months terms.
All recurring deposits, including Andhra 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:
Proof of identity
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