Andhra Bank Recurring Deposit (RD) Rates

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.

Andhra Bank Recurring Deposit Scheme Highlights for 2024

The table below provides the highlight of Andhra Bank recurring deposit scheme:

Andhra Bank RD Interest Rate 2024

Following table provides Andhra Bank RD interest rates for 2024 for deposits below Rs.3 crore: 

Andhra Bank RD Interest Rate for Senior Citizens

The following table provides the Andhra Bank of India RD interest rates for senior citizens for deposits less than Rs.3 crore:

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:

1. Union Monthly Plus Recurring Deposit Scheme

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.

2. Union Bank of India Cumulative Deposit Scheme

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.

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

1. Log in to the Union Bank of India Netbanking portal.
2. Navigate to the option to open a Recurring Deposit account.
3. Enter the information as asked, including instalment amount, account number, tenure, etc.
4. Choose a nominee after checking the applicable interest rate.
5. Read the terms and conditions and tick the checkbox.
6. 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

1. Visit your nearest Union Bank of India branch with your savings account details.
2. Navigate to the necessary authority member and ask for an RD account application form.
3. Fill in the application form by providing all the essential details including deposit tenure, instalment amount, payment mode, nominee etc.
4. Make your first deposit in cash or by using a cheque.
5. 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:

1. Visit your nearest Union Bank of India branch with your RD account details.
2. Navigate to the necessary authority member and ask for an RD account closure form.
3. 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.
4. 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.
5. 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

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.

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