Andhra Bank FD Interest Rates, Feb 2018

Andhra Bank FD rates

Tenure FD Rates Senior Citizen FD Rates
7 days to 14 days 4.00% 4.50%
15 days to 45 days 4.50% 5.00%
46 days to 90 days 5.25% 5.75%
91 days to 179 days 6.00% 6.50%
6 months to 8 months 29 days 6.25% 6.75%
9 months to 364 days 6.25% 6.75%
1 year 6.50% 7.00%
1 year 1 day to 2 years 6.50% 7.00%
2 years 1 day to 10 years 6.25% 6.75%

The above rates are applicable for deposits of below Rs. 1 crore.

Andhra Bank FD Maturity Calculator
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Andhra Bank FD Interest Rates 2018

Andhra Bank offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of Andhra Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in Andhra Bank are:

  • Interest will be paid on monthly basis at discounted rate or quarterly basis as desired by the depositor
  • Nomination facility is available
  • Simple interest is paid on maturity of the deposit
  • Easy investment with attractive returns

FD Rates in Andhra Bank

FDs are attractive financial instruments for depositors looking for attractive returns and high safety. FD interest rates in Andhra Bank range from 4.00% p.a. to 6.25% p.a. for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term Andhra Bank FD rates for senior citizens range from 4.50% to 6.75% p.a.

Always, compare tenure wise FD rate of banks to choose the FD rate at which the bank offers the highest fixed deposit interest rate and if possible, opt for FD with highest interest rate. Andhra Bank FD rates are the highest for the deposits with a tenure of 1 year to 2 years, wherein the FD rate of interest is 6.50% p.a

Andhra Bank FD interest rates for long term deposits with tenure of 5 years to 10 years offer good returns. Andhra Bank fixed deposit rates for deposits with a tenure of 10 years is 6.25%. Senior citizen are offered deposit rates of 6.75% p.a. for long termed FDs.

Andhra Bank Fixed Deposit Rates

Andhra Bank offers best FD rate of 6.50% on term deposits for a tenure of 1 year to 2 years. The bank offers special interest rate on FD for senior citizens. Current Andhra Bank FD rates for senior citizens range from 4.50% to 7.00%. Fixed Deposits rates of Andhra Bank are a function of many factors such as monetary policies of RBI, economic growth rate, credit demand and liquidity position of the bank.

The factors affecting Fixed Deposit interest rates are as follows:

Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and repo rate affects the interest rate of all banking instruments including the fixed deposit.

Recession – Recession results in a decrease in the interest rate offered on fixed deposit. At the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.

Inflation – Inflation has a positive effect on a fixed deposit interest rate. Banks typically fix interest rates of FD in a manner that it is higher than the existing inflation rates. Hence, FD rates tend to be higher in a period of rising inflation.

Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. In a booming economy, people need and are willing to take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through fixed deposits.

Andhra Bank Fixed Deposit

Regular Fixed Deposit

Description:

  • Under this scheme, the depositor is allowed to make investment into the deposit to earn attractive and higher returns along with a flexibility and security.
  • Interest will be paid on monthly basis at discounted rate or quarterly basis as desired by the depositor
  • Nomination facility is available
  • Simple interest is paid on maturity of the deposit
  • Easy investment with attractive returns

Who is eligible?

  • Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

Andhra Bank FD Calculator

Andhra Bank fixed deposit calculator helps you to calculate maturity value of your deposited amount at the interest rate offered compounded at quarterly. The amount of fixed deposits, interest rates on FD, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.

  • Deposit amount – This is the initial amount deposited by a customer in Andhra Bank. Bank may allows higher interest rate on larger deposits. Andhra Bank offers deposit amount in the range of Rs. 1,00,000 to No Limit.
  • Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. Andhra Bank offers a higher rate of interest on fixed deposits of longer tenure and lower interest rate on deposits of less than a year. Highest interest rate offered by Andhra Bank is 6.50% for deposit amount below Rs. 1 crore corresponding to a deposit tenure of years months days to years months days .
  • Period of deposit - Bank offers low interest rate for short tenure FDs and higher interest rate for long tenure FDs. Bank offers a rate of 4.00% for a 7 Days FD and a rate of 6.25% for a 10 Years FD.
  • Interest Compounding Frequency - This determines the frequency at which interest is compounded. Compounding frequency can be monthly, quarterly, half yearly or annual frequency.

Illustration: : Mr. A opens a FD account of Rs. 1 lakh with a tenure of 7 Days at an interest rate of 4.00 %. In this case, the maturity amount at the end of 7 Days will be Rs. 100,076 which includes the principal of Rs. 1 lakh and interest of Rs. 76 is earned on the principal amount during the period. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.

Andhra Bank calculates quarterly interest on its fixed deposits.

FD in Andhra Bank – Premature Withdrawal

Premature closure of Term Deposit with Andhra Bank is along with the lower interest rate of than the contracted rate. The penal provisions for premature closure on Andhra Bank FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit Andhra Bank

Andhra Bank offers loan up to 0% against its own deposit. Note that Andhra Bank will not give you loan against FD of any other bank. Andhra Bank offers Loan against FD at the rate of 5% to 7.5%

Maximum loan tenure is restricted up to the maximum tenure of the FD.

Documents required to open Fixed Deposit Account in Andhra Bank

  • PAN Card
  • 2 Photographs

FAQs on Andhra Bank Fixed Deposit

What is the highest FD rate for Andhra Bank?

You can earn a maximum interest of 6.50% on Andhra Bank fixed deposit.

Are there any special rates for senior citizens FD of Andhra Bank?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 4.00% to 6.50%. Compared to this, the rate of senior citizens FD are in the range of 4.50% to 7.00%.

What is the tenure range for Andhra Bank Fixed Deposit?

The tenure ranges from 7 days to 10 years.

Is there any minimum amount that I have to give for opening a Fixed Deposit with Andhra Bank ?

The minimum deposit amount required to book an FD with Andhra Bank is Rs. 1,00,000.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

Who is eligible for opening an FD account in Andhra Bank?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

What documents are required to open an FD account in Andhra Bank ?

The documents required to open an FD account in Andhra Bank includes PAN Card, 2 Photographs.

Is it possible to change the tenure of my existing fixed deposit account with Andhra Bank ?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with Andhra Bank without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

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