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Recurring deposit schemes are a great way for individuals to build on their savings over a period of time through regular monthly deposits. It is a kind of term deposit offered by banks where people can deposit a certain amount on a monthly basis into their RD account and earn interest at the rate applicable to fixed deposits. Allahabad Bank provides users the facility of opening three different kinds of recurring deposits, namely Normal RD Account, AllBank Monthly Plus (Variable RD) and Double Deposit Plan. The interest rates offered by the bank are competitive, and once the tenure is complete, the instalments deposited are repaid along with the interest, as per the agreed terms and prevailing rules.
About Allahabad Bank: Allahabad Bank was founded in Allahabad on April 24, 1865. The bank's head office shifted to Kolkata (formerly Calcutta) in 1923, following certain business considerations. In July 1969, the government moved to nationalize Allahabad Bank, along with thirteen other banking institutions. The bank crossed benchmark business figure of Rs. 3,00,000 crores in the year 2013 and entered the "Orbit of Large Banks". Recently, Allahabad Bank celebrated 150 years of foundation.
Allahabad Bank Interest Rates on Retail Term Deposits of Less Than Rs. 2 crores - 2019
|Investment Period||Interest Rates|
|180 - 269 days||6.50%|
|270 days to less than 1 year||6.50%|
|1 year to less than 2 years||6.75%|
|2 years to less than 3 years||6.60%|
|3 years to less than 5 years||6.50%|
|5 years to 10 years||6.50%|
|Maturity Period||Rs. 2 crores to less than Rs. 5 cr (%) p.a.||Rs. 5 crores to less than Rs. 10 cr (%) p.a.||Rs. 10 crores to less than Rs. 50 cr (%) p.a.||Rs. 50 crores and above (%) p.a.|
|180 to 269 days||6.00||4.00||4.00||4.00|
|270 days to less than 1 year||6.00||4.00||4.00||4.00|
|More than 1 year to less than 2 years||5.75||4.00||4.00||4.00|
|2 years to less than 3 years||4.00||4.00||4.00||4.00|
|3 years to less than 5 years||4.00||4.00||4.00||4.00|
|5 years to 10 years||4.00||4.00||4.00||4.00|
Source: Allahabad Bank official website
Rate of interest: The interest rates applicable to recurring deposits are as per the guidelines issued by the bank from time to time. It is calculated at quarterly rests on the basis of monthly products with the help of interest tables. Senior citizens are paid additional interest, as prescribed by the bank.
Penal charges: In case the depositor does not pay the instalments by the stipulated time, interest shall be charged on the arrears at the following rate - Rs. 2 for every Rs.100 per month for deposits of 5 years and less.
Following are some of the features of Allahabad Bank Normal RD Account:
Following are some of the features of AllBank Monthly Plus (Variable RD)
Following are some of the features of Double Deposit Plan
The below entities can open a Normal RD account with Allahabad Bank:
The period of deposit is in multiples of 3 months. The minimum period for which the deposit has to be maintained is 6 months, while the maximum is 120 months.
The below entities can open an AllBank Monthly Plus (Variable RD) with Allahabad Bank:
The below entities can open a Double Deposit Plan with Allahabad Bank:
An applicant will have to submit an ID proof and address proof to open a recurring deposit account with Allahabad Bank. The documents acceptable are:
Bank statement with cheque
To open a recurring deposit account with Allahabad Bank, one will need to contact the nearest branch and submit an application form. Additionally, it is necessary that the applicant carries the basic KYC documents, like identity proof and address proof, as the bank will require them to process the application.
Under the Income Tax Act 1961, all recurring deposits - including Allahabad Bank recurring deposit - are subject to tax. The money deposited into an RD account will be included in one’s annual income and a 10% TDS shall apply on the interest earned. In order to reduce this tax burden, one can fill either Form 15G or Form 15H. Timely submission of these documents can help ensure that TDS is not deducted from income, if the RD account holder meets certain conditions.
What is the interest rate that Allahabad Bank offers on senior citizens RDs?
Senior citizens will be paid additional interest, as prescribed by the bank from time to time.
Can I make alterations to the tenure of my ongoing Allahabad Bank Recurring Deposit?
No. One cannot make changes to the tenure and instalment due date, (auto debit date) after opening a recurring deposit account.
How to open an Allahabad Bank Recurring Deposit account without a PAN card?
In case PAN is not available, an individual will have to make a declaration in Form 60.
What is the highest interest rate offered on Allahabad Bank Recurring Deposit?
The highest interest rate currently offered on recurring deposits below Rs. 2 crores is 6.75%.
What are the RD tenure options available with Allahabad Bank Recurring Deposit?
The minimum period for which deposits in the Normal RD account has to be maintained is 6 months, while the maximum is 120 months.
What is the minimum amount required to start an Allahabad Bank Recurring Deposit account?
There is no minimum or maximum limit on the amount of each instalment in RD Scheme.
What is the eligibility criteria to open an Allahabad Bank Recurring Deposit account?
Those who can open a Normal RD account with Allahabad Bank include individual - In his/her name, two or more individuals - joint Accounts in their names, minors, sole proprietary concerns, partnership firms, limited companies, illiterate persons, blind persons and students of the age of 10 years and above. The period of deposit has to be in multiples of 3 months. The minimum period for which deposit needs to be maintained is 6 months, while the maximum is 120 months.
Can I open my Allahabad Bank Recurring Deposit without a PAN card?
While it is possible to open a recurring deposit account without a PAN card, there are certain implications to it. The TDS applicable will be recovered at 20% (as against 10% with PAN card). There will be no TDS credit from the Income Tax department, and no TDS certificate shall be issued (As per CBDT circular no: 03/11). Additionally, penal TDS will apply and Form 15G/H and other exemption certificates become invalid. It must be noted that no deposit for a sum equal to or more than Rs. 50,000 shall be booked if the PAN is not provided.