Bandhan Bank RD Interest Rates – How to Open RD Account?

Headquartered in Kolkata, Bandhan Bank is one of the leading commercial banks in India, offering retail and corporate financial services. Its expert portfolio of banking products includes recurring deposits with a varied range of flexible tenure options. 

Now opening an RD in this bank has become easy with their online banking portal. Recurring deposits are designed to help you save and grow your hard-earned money eventually. Moreover, investments through little installments every month is a good practice to induce in. 

Scroll down to have a comprehensive idea about Bandhan Bank RD interest rates.

Bandhan Bank RD Interest Rates 2024

Bandhan Bank offers a hike of 0.75% Bandhan Bank RD interest rate to senior citizens. Kindly, have a glance at the below-mentioned table below to learn more about the applicable Bandhan Bank RD interest rate today. 

Features of Bandhan Bank Recurring Deposit Interest Rates 2024

For better insights on Bandhan Bank RD interest rates, read on to the below-mentioned features of the RD account in Bandhan Bank.

1. You can deposit a minimum amount of ₹100 and thereafter in multiples of ₹1.
2. The tenure of Bandhan Bank Recurring Deposit account ranges from 6 months to 10 years.
3. RD accounts in this bank offer an overdraft facility after 3 months.
4. You can avail the premature withdrawal option if required.
5. Bandhan Bank offers a passbook facility to its depositors.
6. You can easily open and manage your RD account through their online portal.

How to Open an RD Account in Bandhan Bank Online?

Here is a stepwise process you need to follow with due diligence to open a Bandhan Bank Recurring Account online.

• Step 1: Activate your net banking account from the official website of Bandhan Bank. 
• Step 2: Log in to your account with your registered user ID and password.
• Step 3: Click on the ‘E-Recurring Deposit’ option. An RD account opening application form will be displayed. 
• Step 4: Fill in the details such as tenure and RD amount. 
• Step 5: Click on the ‘Submit’ tab. 

That’s it! After the whole process, you will get your RD account number on the redirected page.

How to Open an RD Account in Bandhan Bank Offline?

Scroll down to discover the step-by-step guidelines on how to avail the secured RD interest rate in Bandhan Bank by visiting your nearest branch.

• Step 1: Collect the RD opening form from the bank and fill out all the required details such as your particulars, tenure, deposit amount and nominee name (if any) along with your signature.
• Step 2: Attach the required documents with the form and submit it. 
• Step 3: Make your first deposit either by cash, cheque or via net banking.

Afterwards, the official bankers will verify the documents and open your RD account in the Bandhan Bank.

Bandhan Bank RD Interest Rate Calculation

You can manually calculate the RD interest that you will receive at the end of the tenure, using a standard RD formula. Or else, you can opt for an online RD calculator that is easily accessible on the bank’s website. Below, both ways are explained in detail for your better understanding.

1. RD Calculation Formula

A = P x (1 + R/n)^nt

Here, 

• A = maturity amount
• P = principal amount 
• R = interest rate
•  n = number of times the interest will compound per year 
•  t = tenure 

Let’s say you have invested ₹3,000/ month for 3 years (36 months). As per the current Bandhan Bank RD rates, your interest rate will be 7.25% (Quarterly compounded).

Let’s calculate the amount of interest using the RD formula,

A = 3000 x (1 + 7.50/4)^4×36 = ₹1,21,358 

2. RD Calculator

The calculation of interest using the RD formula can be overwhelming for some individuals, whereas RD calculators are easy to use and give accurate results. Read below to learn how to use the RD calculator.

• Step 1: Navigate to an online RD calculator tool.  
• Step 2: Enter the amount of interest, tenure and the rate of interest. 

That’s it! After this, you will get to know the total sum of the deposit money, the maturity amount and the interest that you will earn.

Bandhan Bank RD Account Eligibility Criteria

Here is a list of entities that are eligible to open an RD account with the Bandhan Bank. 

1. Resident Individuals
2. Minors (Under guardianship)
3. Partnership firms
4. Associations 
5. Trusts
6. HUFs (Members of a Hindu Undivided Family)
7. Sole proprietary firms
8. Non-resident individuals
9. Companies

Documents Required for Bandhan Bank RD Account

You must keep all the below-listed documents handy while opening an RD account in Bandhan Bank.

1. Proof of Identity

1. 2 Passport size photographs
2.  Government ID cards (Voter ID and Aadhaar card)
3.  PAN Card

2. Proof of Address

1. Driving Licence 
2. Valid Passport 
3. Phone or Electricity Bill  (not older than 2 months)
4. Bank Statement (not older than 3 months) 
5. Passbook (not older than 3 months) 

Types of Bandhan Bank RD Accounts

Kindly refer to the below-stated types of RD Accounts if you are prioritising the attractive Bandhan Bank RD interest rates.

1. Domestic Recurring Deposit

The Domestic Recurring Deposit account of Bandhan Bank is the standard type of RD provided by the bank. It offers a hike of 0.75% interest rates over the rates applicable to general citizens. 

• Minimum Deposit: ₹100/month 
• Maximum Deposit: No limit specified 
• Tenure: 6 months to 10 years
• Interest Rate: 4.50% to 7.85% for the general citizens and 5.25% to 8.35% for senior citizens
• Eligibility: Resident Individuals, Minors, Partnership Firms, Associations, HUFs (Hindu Undivided Family), Non-resident individuals

2. NRO Recurring Deposit

NRO or Non-resident Ordinary recurring deposit account is a type of NRI Bandhan Bank RD, enabling Indians residing abroad to earn high-yielding interest on their foreign income. This account comes with additional benefits such as timely passbook updates and nomination facilities.

• Minimum Deposit: ₹100/month 
• Maximum Deposit: No limit Specified
• Tenure: 6 months to 10 years
• Interest Rate: 4.50% to 7.85%
• Eligibility: Existing NRI card holders, POI & OCI 

3. NRE Recurring Deposit

Under the NRE RD, you will get attractive returns on regular investments of yours. The interest earned from NRE Recurring Deposit is exempt from taxation. Moreover, this RD account comes with full and free repatriation benefits. 

• Minimum Deposit: ₹100/month 
• Maximum Deposit: No limit Specified
• Tenure: 1 to 10 years
• Interest Rate: 5.85% to 7.85%
• Eligibility: Existing NRI card holders, POI & OCI 

Bandhan Bank RD Premature Withdrawal Rules

Investors need to pay penalties if they prematurely withdraw their RD investment from Bandhan Bank. However, this penalty will not be applicable upon premature withdrawals of RD investment in the event of the death of a primary/joint account holder. 

Bandhan Bank RD Penalty

The following are some of the penalties that you need to know before opting for Bandhan Bank RD interest rates.

• The bank will charge a penalty of 1% on the card rate for premature and partial withdrawals of RD investment. 
• In case of delayed instalments, the bank will charge a penalty of ₹2 per deposit of ₹100. 

How to Close Bandhan Bank RD Account Offline?

In case you want to close your Bandhan Bank RD account offline, follow the below-stated steps.

• Step 1: Visit your nearest Bandhan Bank branch and collect the account closure form.
• Step 2: After filling up the form, carefully submit it along with the required KYC documents. 
• Step 3: Submit the RD receipt or RD certificate containing various important details like the amount of the deposit, tenure and the applicable Bandhan Bank RD Interest Rates.

That’s it! The bank officials will verify all your documents and close your Bandhan Bank RD account.

TDS on Bandhan Bank RD

The Recurring Deposit in the Bandhan Bank does not qualify for tax savings. To learn more about the TDS on the Bandhan Bank Recurring Deposit, scroll down.

1. The interest income earned from Bandhan Bank RD will be taxable as per the applicable tax slab rate. 
2. A TDS of 10% will be deducted if your interest income exceeds ₹40,000 in a financial year.
3. In the case of senior citizens, the Bandhan Bank will deduct 10% TDS if their interest income exceeds ₹50,000 in a financial year.
4. However, the applicable rate of TDS will extend to 20% if an account holder does not provide his/her PAN details. 

Loan Against Bandhan Bank Recurring Deposit

You can get a loan against Bandhan Bank RD for any financial emergencies up to 90% after 3 months of account opening. However, take note of the following factors before applying for this loan facility. 

1. The bank will give you a term of 5 years to repay the loaned amount.
2. The interest charged on the loan varies, depending upon the applicable RD interest rates plus 1.50% to 2.00%.
3. Bandhan Bank charges zero processing fees.
4. You can repay your loaned amount in equated monthly instalments either by electronic clearing system or standing instructions.
5. Any existing RD holders of Bandhan Bank are eligible for the loan against RD facility.
6. Documents like duly filled application form, RD receipt, proof of identity and address proof are compulsory for applying for this loan.

Recurring Deposit in Bandhan Bank is one of the best low-risk investments for those who want to save small amounts per month. Now that you know how you can avail the impressive Bandhan Bank RD interest rates, you can start your investment journey. 

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