Latest Bandhan Bank FD Interest Rate April 2023
Bandhan Bank FD interest rates range from 3% to 8% for the general public and 3.75% to 8.50% for senior citizens. The deposit tenure starts from 7 days and goes up to 10 years. Bandhan Bank also offers a 5-year tax-saver FD scheme with which you can claim tax deduction benefits of up to Rs.1.5 lakh under Section 80C of the I-T Act.
There are different types of FD schemes offered by Bandhan Bank. These include the Standard Fixed Deposit, Premium Fixed Deposit, Advantage Fixed Deposit, Dhan Samriddhi Fixed Deposit and Super Saved Fixed Deposit. Moreover, NRIs can also invest in the different types of NRI FDs the bank offers.
Bandhan Bank FD Interest Rates 2023 Highlights
| Interest Rate | 3% – 8% (general public) 3.75% – 8.50% (senior citizens) |
| Tenure | 7 days – 10 years |
| Minimum Deposit | Rs.10 (daily) or Rs.1000 lump sum |
| Maximum Deposit | No Upper Limit |
| Lock-in Period | NA (5 years forTax Saver FD) |
How to Calculate Bandhan Bank FD Interest Rate?
FDs might offer two types of interest rates – simple interest and compound interest. The calculation of the FD interest rate depends on which type of interest rate is being offered.
1. Bandhan Bank Fixed Deposit Interest Rate – Simple Interest
Under the simple interest method, the interest is calculated on the amount deposited for each year.
The formula for calculating the bank FD interest rate under the simple interest rate method is as follows –
Simple Interest = (P * R * T)/100
where,
- P = Principal amount invested
- R = Rate of interest (%)
- T = Tenure
For instance, if you deposit Rs.50,000 for 5 years at an interest rate of 7%, the simple interest would be calculated as follows –
Simple Interest = (50,000 * 7 * 5) /100 = Rs.17,500
Maturity Value = Principal Amount + Simple Interest = Rs.50,000 + Rs.17,500
So, at the time of your FD maturity, you will get Rs.67,500
2. Bandhan Bank Fixed Deposit Interest Rate – Compound Interest
Compound interest is the interest earned on the initial investment plus the interest earned on the interest already accumulated. The formula for calculating the compound interest is as follows:
A = P (1+r/n) ^ (n * t)
where,
- A = Maturity Amount
- P = Principal amount invested
- r = Rate of Interest (in decimals)
- n = number of times the interest is compounded in a year
- t = number of years
For instance, say you deposit Rs.50,000 for 5 years at 7% interest rate compounded half-yearly. Then, the values would be as follows –
P = Rs.50,000, Interest Rate = 7%, Number of times interest is compounded in a year is 2 i.e., once every 6 months, Number of years is 5 years and A = 50,000 (1+0.07/2) ^ (2*5)
A or Maturity Amount = Rs.70,530
Interest amount = Rs.70,530 – Rs.50,000 = Rs.20,530
Factors that Can Affect Bandhan Bank Fixed Deposit Rate
The following factors affect the Bandhan Bank FD interest rates –
1. Deposit Tenure
The deposit tenure also affects the Bandhan Bank FD interest rates. The rates are different for different tenures. Usually, FDs with a longer tenure can yield higher interest rates than those with lower tenures.
2. Deposit Amount
Banks usually differentiate the interest rates for FDs below Rs.2 crores and for FDs above this limit. So, depending on the deposited amount, the Bandhan Bank FD rates might change.
3. Age of the Depositor
Senior citizens earn higher interest rates than normal individuals. So, the FD interest rate also depends on the depositor’s age.
4. Monetary Policy
The Reserve Bank of India’s (RBI) monetary policy directly impacts the Bandhan Bank fixed deposit rates. Usually, hikes in repo rates increase the FD rates and vice versa.
Bandhan Bank FD Interest Rate for General Public
Bandhan Bank offers different types of fixed deposit schemes, each with different interest rates depending on the amount and tenure. The interest rates for term deposits of less than Rs. 2 crore differ from term deposits of Rs.2 crore or more. The fixed deposits of Rs.2 crore or more are known as bulk deposits.
1. Bandhan Bank FD Interest Rates for Deposits Below Rs.2 Crore
| Tenure | Interest Rates |
| 7 days to 14 days | 3% |
| 15 days to 30 days | 3% |
| 31 days to less than 2 months | 3.50% |
| 2 months to less than 3 months | 4.50% |
| 3 months to less than 6 months | 4.50% |
| 6 months to less than 1 year | 4.50% |
| 1 year to 599 days | 7.25% |
| 600 days (1 year, 7 months, and 20 days) | 8.00% |
| 601 days to less than 2 years | 7.25% |
| 2 years to less than 3 years | 7.25% |
| 3 years to less than 5 years | 7.25% |
| 5 years to up to 10 years | 5.85% |
2. Bandhan Bank FD Interest Rates for Deposits Above Rs.2 Crore
| Tenure | Interest Rates |
| 7 days to 15 days | 5.00% |
| 16 days to 28 days | 5.80% |
| 29 days to 45 days | 5.80% |
| 46 days to 90 days | 5.80% |
| 91 days to 180 days | 6.50% |
| 181 days to 364 days | 7.00% |
| For 365 days | 7.70% |
| For 366 days | 7.70% |
| For 367 days to less than 15 months | 7.70% |
| 15 months to less than 2 years | 6.75% |
| 2 years to less than 3 years | 6.75% |
| 3 years to less than 5 years | 6.15% |
| 5 years to 10 years | 5.00% |
Note
The interest rates stated above are subject to change from time to time without any advance notice.
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Bandhan Bank FD Interest Rate for Senior Citizens
Bandhan Bank offers a high rate of interest to senior citizens having an FD account with the bank (standard rate+ 0.75%) on the amount of deposit if the deposit is below Rs.2 crore.
1. The Table below Represents Bandhan Bank FD rates for Senior Citizens.
| Tenure | Interest Rate |
| 7 days to 14 days | 3.75% |
| 15 days to 30 days | 3.75% |
| 31 days to less than 2 months | 4.25% |
| 2 months to less than 3 months | 5.25% |
| 3 months to less than 6 months | 5.25% |
| 6 months to less than 1 year | 5.25% |
| 1 year to 599 days | 7.75% |
| 600 days (1 year, 7 months, and 20 days) | 8.50% |
| 2 years to less than 3 years | 7.75% |
| 3 years to less than 5 years | 7.75% |
| 5 years to up to 10 years | 7.75% |
| 2 years to less than 3 years | 6.60% |
Note
The interest rates stated above are subject to change from time to time without any advance notice.
Bandhan Bank FD Interest Rate for NRI
Bandhan Bank FD rates for NRIs (Non-resident Indians) range from 3% to 8%. Note that there is no preferential rate for senior citizens when it comes to NRI accounts. The different types of FD schemes offered by Bandhan Bank for NRIs are:
- Foreign Currency Non-Resident (FCNR-B) Fixed Deposit
- NRE Fixed Deposit
- NRO Fixed Deposit
1. Bandhan Bank NRO FD Interest Rate
NRO FD or Non-Resident Ordinary-Fixed Deposit is a type of fixed deposit account which can be opened by non-resident Indians (NRIs) in India. NRO FD helps the NRIs to manage their Indian income and earnings such as rent, pension, dividends which they receive while residing outside India. Bandhan Bank offers upto 8% interest rates on NRO FD term deposits. The tenure begins at 7 days and goes up to 10 years. Here is the interest rate chart of Bandhan Bank NRO FD for different tenures:
| Tenure | Interest Rates |
| 7 days to 14 days | 3% |
| 15 days to 30 days | 3% |
| 31 days to less than 2 months | 3.50% |
| 2 months to less than 3 months | 4.50% |
| 3 months to less than 6 months | 4.50% |
| 6 months to less than 1 year | 4.50% |
| 1 year to 599 days | 7.25% |
| 600 days (1 year, 7 months, and 20 days) | 8.00% |
| 601 days to less than 2 years | 7.25% |
| 2 years to less than 3 years | 7.25% |
| 3 years to less than 5 years | 7.25% |
| 5 years to up to 10 years | 5.85% |
Note
The interest rates stated above are subjected to change from time to time without any advance notice.
2. Bandhan Bank NRE FD Interest Rate
NRE FD stands for Non-Resident External Fixed Deposits, which can be opened by non-resident Indians (NRIs) in India to hold their overseas earnings in India. The NRIs can convert their foreign earnings into Indian Rupees by depositing them in NRE FD accounts. Bandhan Bank fixed deposit interest rate for NRE accounts range from 3% to 8% depending on the tenure and the deposit amount. The minimum tenure is, however, 1 year.
| Tenure | Interest Rates |
| 1 year to 599 days | 7.25% |
| 600 days (1 year, 7 months, and 20 days) | 8.00% |
| 601 days to less than 2 years | 7.25% |
| 2 years to less than 3 years | 7.25% |
| 3 years to less than 5 years | 7.25% |
| 5 years to up to 10 years | 5.85% |
Note
The interest rates stated above are subjected to change from time to time without any advance notice.
3. Bandhan Bank FCNR Interest Rates
Foreign Currency Non-Resident (FCNR) account is a type of fixed deposit in which NRIs can hold their funds in India in foreign currency deposits of their choice. Bandhan Bank offers FCNR deposits in three currencies, namely USD, GBP and EURO, with interest rates ranging from 2.46% to 6.01% depending on the currency and the tenure. The interest is compounded half-yearly.
| Currency | USD | GBP | EURO |
| Tenure | Interest Rate | Interest Rate | Interest Rate |
| 1 year to less than 2 years | 4.92% | 3.82% | 2.62% |
| 2 years to less than 3 years | 5.18% | 3.80% | 2.46% |
| 3 years to less than 4 years | 5.59% | 4.13% | 2.70% |
| 4 years to less than 5 years | 5.82% | 4.35% | 2.92% |
| 5 years | 6.01% | 4.57% | 3.04% |
*Note: The interest rates stated above are subjected to change from time to time without any advance notice.
Bandhan Bank Vs Other Banks’ FD Interest Rates
The table below compares Bandhan Bank fixed deposit rates with other banks’ interest rates. We have considered the term deposits below Rs. 2 crores based on the common threshold in India. The upper limit stated for FD interest rate includes interest rate for senior citizen/super senior citizen FDs:
| Name of the Bank | Maturity Period | Interest Rate Range |
| Central Bank of India | 7 Days to 10 Years | 4.00% to 7.25% |
| State Bank of India | 7 Days to 10 Years | 3.00% to 7.50% |
| Karnataka Bank | 7 Days to 10 Years | 4.5% to 7.80% |
| Union Bank of India | 7 Days to 10 Years | 3.00% to 7.80% (0.5% higher for senior citizens) |
| Bank of Baroda | 7 Days to 10 Years* | 3.00% to 7.55% |
| Punjab National Bank | 7 Days to 10 Years | 3.50% to 8.05% |
| Bank of India | 7 Days to 10 Years | 3.00% to 7.65% |
| Citibank | 7 Days to 10 Years | 3.50% to 8.01% |
| IDFC First Bank | 7 days to10 years | 3.50%-7.75% |
| Indian Overseas Bank | 7 Days to 10 Years | 4.30% to 7.75% |
| Deutsche Bank | 7 days to 5 years | 3% to 7.75% |
| HDFC Bank | 7 Days to 10 Years | 3.00% to 7.75% |
| Axis Bank | 7 Days to 10 Years | 3.50% to 8.01% |
| ICICI Bank | 7 Days to 10 Years | 3.00% to 7.60% |
| Kotak Mahindra Bank | 7 Days to 10 Years | 2.75% to 7.70% |
| Paytm Payments Bank | 7 days to 1 year | 2.75% to 5.5% |
| DBS Bank | 7 days to 5 years and above | 2.5% to 8% |
| IndusInd Bank | 7 Days to 10 Years | 3.25% to 8.25% |
| RBL Bank | 7 Days to 20 Years | 3.50% to 8.30% |
| Sundaram Finance | 12 months to 36 months | 7.45% to 8.25% |
| Canara Bank | 7 Days to 10 Years | 4.00% to 7.75% |
| Punjab and Sind Bank | 7 Days to 10 Years | 2.80% to 7.60% |
| IDBI Bank | 7 Days to 10 Years | 3.00% to 7.25% |
| HSBC | 7 Days to 5 Years | 2.85% to 8.00% |
| Indian Bank | 7 Days to 5 Years | 2.80% to 6.70% |
| Federal Bank | 7 Days to 2223+ Days | 3.00% to 7.75% |
Features and Benefits of Bandhan Bank Fixed Deposit
The salient features and benefits of Bandhan Bank fixed deposits are as follows –
- The fixed deposit tenure starts from 7 days. However, NRE deposits, the minimum tenure is 1 year. Tax-saving FDs have a minimum investment tenure of 5 years.
- The maximum deposit tenure goes up to 10 years.
- You can open a deposit account with as little as Rs.10 per day.
- There’s no limit on the maximum deposit amount.
- You can get the interest credited to your account quarterly or monthly to create a regular source of income.
- Some deposit schemes allow the facility of premature closure. However, a penalty might apply on the interest rate.
- Under some deposit schemes, the compound interest earned on the deposit gets reinvested for higher returns.
- Some schemes offer a doorstep collection facility.
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Different Types of Bandhan Bank FD Schemes
Different types of fixed deposit schemes are available with Bandhan Bank, for both resident individuals and NRIs. Here’s a look at the different types of fixed deposits available with the bank –
- Standard Fixed Deposit
- Premium Fixed Deposit
- Tax Saver Fixed Deposit
- Advantage Fixed Deposit
- Dhan Samriddhi Fixed Deposit
- Super Saver Fixed Deposit
- Foreign Currency Non-Resident (FCNR – B) Fixed Deposit
- NRE Fixed Deposit
- NRO Fixed Deposit
1. Standard Fixed Deposit
- Minimum Deposit: Rs.1,000
- Maximum Deposit: No Upper Limit
- Tenure: 7 days to 10 years
- Interest Rate: 3% to 8.50%
- Eligibility Criteria: Indian resident
2. Premium Fixed Deposit
- Minimum Deposit: Rs.2 crores
- Maximum Deposit: No Upper Limit
- Tenure: 7 days to 10 years
- Interest Rate: 5% to 8%
- Eligibility Criteria: Indian resident
3. Tax Saver Fixed Deposit
- Minimum Deposit: Rs.1000
- Maximum Deposit: Rs.1.5 lakh
- Tenure: 5 years
- Interest Rate: 5.85% (6.60% for senior citizens)
- Eligibility Criteria: Indian resident
- Lock-in Period: 5 years
4. Advantage Fixed Deposit
- Minimum Deposit: Rs.1000
- Maximum Deposit: No Upper Limit
- Tenure: 6 months to 10 years
- Interest Rate: 3% to 8.50%
- Eligibility Criteria: Indian resident
5. Dhan Samriddhi Fixed Deposit
- Minimum Deposit: Rs.5,000
- Maximum Deposit: No Upper Limit
- Tenure: 6 months to 10 years
- Interest Rate: 3% to 8.50%
- Eligibility Criteria: Indian resident
6. Super Saver Fixed Deposit
- Minimum Deposit: Rs.10
- Maximum Deposit: Rs.8000
- Tenure: 1 year
- Interest Rate: N.A
- Eligibility Criteria: Indian resident
7. Foreign Currency Non-Resident (FCNR-B) Fixed Deposit
- Minimum Deposit: USD – 1,000, GBP – 1000 and Euro – 1000
- Maximum Deposit: No Upper Limit
- Tenure: 1 year to 5 years
- Interest Rate: 2.46% to 6.01%
- Eligibility Criteria: Non- resident Indian
8. NRE Fixed Deposit
- Minimum Deposit: Rs.1,000
- Maximum Deposit: No Upper Limit
- Tenure: 1 years to 10 years
- Interest Rate: 3% to 8.00%
- Eligibility Criteria: Non-resident Indian
9. NRO Fixed Deposit
- Minimum Deposit: Rs.1,000
- Maximum Deposit: No Upper Limit
- Tenure: 7 days to 10 years
- Interest Rate: 3% to 8.00%
- Eligibility Criteria: Non-Resident Indian
How to Invest in Bandhan Bank Fixed Deposits?
Here’s you can open Bandhan Bank FD account via net banking:
Step 1: Log into your net banking account using your user ID and password
Step 2: Choose the fixed deposit option and then select the type of fixed deposit that you want to open
Step 3: Choose the account from where the deposit for the fixed deposit account would be debited
Step 4: Fill out the FD details, including the amount and the tenure
Step 5: Choose auto-renewal if you want to reinvest your FDamount upon maturity
Step 6: Accept the terms and conditions to complete the application and open the account
Documents Required to Open a Bandhan Bank Fixed Deposit Account
You have to submit some documents to open a Bandhan Bank Fixed Deposit Account. Some of these documents include the following –
- Proof of Identity: Aadhaar Card, PAN Card, Driving License, Passport, etc.
- Proof of Address: Aadhaar Card, Voter’s ID Card, Driving License, Passport, etc.
- Proof of Age: Birth Certificate, Aadhaar Card, Voter’s ID Card, Passport, PAN Card, etc.
Eligibility to Open Bandhan Bank Fixed Deposit Account
You can open a Bandhan Bank Fixed Deposit Account if you meet the specified eligibility criteria. The criteria include the following:
- Nationality: Resident Indian or NRI (for NRI deposits)
- Age: 18 years or above (individuals can open an account on behalf of minors)
- Individuals belonging to Hindu Undivided Families (HUFs), Limited Companies, Trust Accounts, Sole Proprietorship Firms and Partnership Firms are eligible to open an FD account
Taxation on Bandhan Bank Fixed Deposits
- Interest earned from the fixed deposit scheme is considered ‘Income from Other Sources’. It is taxed in your hands at your slab rates.
- Senior citizens can enjoy tax-free interest income. Interest earned from their fixed deposit schemes is tax-free up to Rs.50,000 under Section 80TTB.
- Interest earned up to Rs.40,000 does not attract TDS (Tax Deducted at Source). If the interest exceeds Rs.40,000, TDS at 10% is applicable. For senior citizens, the limit is Rs.50,000.
- Interest earned on fixed deposits withdrawn prematurely is also considered ‘Income from Other Sources’. It is taxed at your slab rates.
- Senior citizens can submit Form 15H to avoid TDS deductions. For normal individuals, Form 15G is applicable.
- For tax-saving fixed deposits, investment into the scheme is allowed as a deduction under Section 80C up to Rs.1.5 lakh. However, such deposits have a lock-in period of 5 years. Interest earned from such deposits, however, attracts tax.
Loan Against Bandhan Bank FD Scheme
Your Bandhan Bank fixed deposit can give you funds (during the tenure) if you face any financial need or are short on savings. The bank offers a loan against term deposits. The maximum loan amount is up to 90% of the deposit amount and the interest rate is 1.50% to 2% over the deposit rate of your FD account.
Other features of the loan are as follows –
- The repayment tenure is up to 3 years.
- Repayment is done through Equated Monthly Instalments (EMI) paid through Standing Instructions (SI) or Electronic Clearing System (ECS).
- No processing fee is charged on the loan.
- Existing depositors of Bandhan Bank can apply for the loan.
- You have to submit an application form along with the FD receipt discharged in favour of the bank. Other documents include your identity and address proof if these details changed after opening the FD account.
Final Word
Bandhan Bank offers different types of Fixed Deposit schemes to choose from. You may choose a scheme depending on your needs and time horizon. The deposit starts from Rs.10 and there’s no maximum limit. Both resident and non-resident Indians can invest in the bank’s deposits and if you are a senior citizen, you can get a higher interest rate. Understand the terms and conditions, eligibility parameters and documents required when investing in the FD. Also, check the interest rates to make the most of your deposit.
However, the FD interest rates do not account for the rising inflation and you might lose out on the returns. As an alternative, you can start investing with Navi Mutual Fund. Download the Navi app and start investing today!
FAQs
Most Bandhan Bank fixed deposit schemes offer premature withdrawal facility except tax saving FDs. Tax-saving FDs have a minimum lock-in of 5 years. However, in the case of premature withdrawals, a premature penalty would apply and the interest rate would reduce.
If your total income is below Rs.2.5 lakhs, you can avoid a TDS deduction even if your interest is above Rs.40,000. To avoid TDS, submit Form 15G if you are below 60 years of age or Form 15H if you are a senior citizen.
The interest rate on fixed deposits can change over time. However, once you have made a deposit at a specified rate, the rate remains fixed during the chosen tenure.
There is no maximum age for investing in the fixed deposit scheme.
You can invest in as many fixed deposit schemes as you want provided you are eligible for them. There is no restriction on the number of fixed deposits that you can hold in your portfolio.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
