Bandhan Bank Fixed Deposit

Bandhan Bank Ltd is a product of an innovative initiative by the Government of India to set up a universal bank. As a subsidiary of Bandhan Financial Holdings Limited, Bandhan Bank was incorporated on 23rd December 2014. The Reserve Bank of India (RBI) approved the formation of Bandhan Bank in June 2015. The bank was formally inaugurated on 23rd August 2015 at Kolkata. Bandhan Bank made an impressive start to its innings in the Indian financial sector with 501 branches and 50 ATMs along with 2022 DSCs (doorstep service centres). Today, Bandhan Bank has more than 4014 points of interaction across India comprising of 1000 branches and 3014 DSCs.

Why Bandhan Bank Fixed Deposits?

Bandhan Bank has built up a customer base of more than 1.73 Crore customers over the past four years. The bank provides a good range of loan products such as home loans, MSME and small enterprise loans, agri and microloans. Besides, it offers tailor-made deposit products to suit the needs of its customers situated pan India. Bandhan Bank offers the best deposit rates in India among all contemporary banks. It is a technologically-equipped bank.

Bandhan Bank Fixed Deposits - Features and Benefits

  • One of the best rates in the Indian banking industry
  • Excellent liquidity options
  • Flexible interest payouts such as monthly or quarterly
  • Quarterly compounding options
  • Loans and overdrafts available
  • Partial withdrawal and premature closure allowed
  • The minimum investment is 1,000 and in multiples of 1
  • The convenience of opening Fixed Deposit (FD) online using internet or phone banking
  • Choice of attractive investment plans

Bandhan Bank Fixed Deposits - Rate of Interest

Bandhan Bank offers one of the best interest rates for regular and senior citizen deposits in India. The bank has a varied deposit rate structure for amounts less than 2 Crores and bulk deposits.

Domestic/NRE Term Deposits Interest Rate Table - for amounts less than 2 Crores - with effect from 18.06.2019 (in % per annum)

Deposit tenure Regular Deposit Senior Citizens

7 to 14 days

3.50

4.25

15 to 30 days

4

4.75

31 to < 2 months

4

4.75

2 months to < 3 months

4

4.75

3 months to < 6 months

4.50

5.25

6 months to < 1 year

6.80

7.55

1 year to 18 months

7.35

8.10

More than 18 months to < 2 years

7.50

8.25

2 years to < 5 years

7.65

8.40

5 years to < 7 years

7.65

8.40

7 years to 10 years

7.65

8.40

Rate of interest on bulk deposits - with premature payment facility - with effect from 01.08.2019 (% per annum)

Maturity Period 2 Cr to 10 Cr More than 10 Cr to < 25 Cr 25 Cr to < 50 Cr 50 Cr to < 100 Cr 100 Cr and above

7 to 15 days

4

4

4

4

4

16 to 28 days

4

4

4

4

4

29 to 45 days

4

4

4

4

4

46 to 90 days

4

4

4

4

4

91 to 180 days

6.25

6.25

6.25

6.25

6.25

181 to 364 days

7

7

7.

7

7

1 year to < 15 months

7.55

7.55

7.55

7.55

7.55

15 months to < 2 years

7.50

7.50

7.50

7.50

7.50

2 years to < 3 years

7.50

7.50

7.50

7.50

7.50

3 years to < 5 years

6

6

6

6

6

5 years to 10 years

6

6

6

6

6

Rate of interest on bulk deposits - without premature payment facility - with effect from 01.08.2019 (% per annum)

Maturity Period 2 Cr to 10 Cr More than 10 Cr to < 25 Cr 25 Cr to < 50 Cr 50 Cr to < 100 Cr 100 Cr and above

7 to 15 days

4

4

4

4

4

16 to 28 days

4

4

4

4

4

29 to 45 days

4

4

4

4

4

46 to 90 days

4

4

6.10

6.10

6.10

91 to 180 days

6.50

6.50

6.50

6.50

6.50

181 to 364 days

7.25

7.25

7.25

7.25

7.25

1 year to < 15 months

7.75

7.75

7.75

7.75

7.75

15 months to < 2 years

7.75

7.75

7.75

7.75

7.75

2 years to < 3 years

7.75

7.75

7.75

7.75

7.75

3 years to < 5 years

6

6

6

6

6

5 years to 10 years

6

6

6

6

6

 FCNR (B) Deposit Interest Rate Table for August 2019

Deposit tenure USD GBP EUR

1 year to < 2 years

4.01

1.24

0.01

2 years to < 3 years

3.83

1.25

0.01

3 years < 4 years

2.55

1.17

0.01

4 years < 5 years

2.52

1.19

0.01

5 years

2.53

1.21

0.01

Bandhan Bank Fixed Deposits - Types of Deposits

Fixed Deposit Premium

Product

Avail a higher rate of interest on your high-value deposit

Deposit amount

Minimum - 2 Crores

Deposit tenure

7 days to 10 years

Loan/Overdraft

Available

Premature closure

Allowed

Taxation

As per IT rules

Fixed Deposit Standard

Product

Save for your dreams such as purchasing a house or car, wedding or child's education.

Minimum deposit

1,000 and subsequently in multiples of 1

Options

Short and long-term options available

Deposit tenure

7 days to 10 years

Premature closure

Part withdrawal and early closure permitted

Loan/Overdraft

Available

Taxation

As per rules

Other Benefits

Automatic renewal facility and nomination available

Fixed Deposit Advantage

Product

Opportunity to earn high interest while enjoying the flexibility to withdraw in an emergency.

Minimum investment

1,000 and afterwards in multiples of 1

Type of deposit

Reinvestment

Deposit tenure

Six months to ten years

Withdrawal options

Partial withdrawal and early closure allowed

Taxation

As per rules

Loan/Overdraft

Available

Other benefits

Nomination and auto-renewal facility

Fixed Deposit Dhan Samriddhi

Product

Experience your hard-earned money grow with this reinvestment product

Minimum deposit

5,000

Deposit tenure

6 months to 10 years

Deposit type

Reinvestment

Loan/Overdraft

Available

Taxation

As per IT rules

Other benefits

  • Automatic renewal
  • Nomination facility
  • Facility to open joint accounts
Fixed Deposit Tax Saver

Product

Get the benefit of concessions in Income Tax under Sec 80C of IT Act

Minimum deposit

1,000

Maximum investment

1.50 Lakhs

Deposit tenure

5 to 10 years that includes a lock-in period of 5 years

Nomination

Available

Premature closure

Not allowed during the lock-in period

Loan/Overdraft

Not allowed

Recurring Deposit

Product

Opportunity to save gradually in monthly instalments to build a grand corpus

Minimum deposit

100 and afterwards in multiples of 1

Deposit tenure

6 months to 10 years

Loan/Overdraft

Available

Nomination

Available

Taxation

As per rules

Non-Resident Deposits

Bandhan Bank offers Rupee-denominated NRE and NRO fixed and recurring deposit products to cater to the needs of the NRI community. Besides, the bank has the FCNR FD product that is a foreign-currency-denominated product to protect the NRI's interests from exchange rate fluctuations.

  NRE Fixed Deposit NRO Fixed Deposit

Product

Opportunity for NRIs to watch their money grow

Currency of deposit

Indian Rupee Fixed Deposit Account

Eligibility

NRIs and PIOs holding Indian/foreign passport

Minimum investment

1,000 and in multiples of 1

Deposit tenure

1 year to 10 years

7 days to 10 years

Source of funds

Remittance from abroad

Transfer from NRE/FCNR account

Payment from abroad

Transfer from NRE/FCNR account

Income from legitimate domestic investments

Interest payouts

Monthly, quarterly, and reinvestment options available

Premature closure

Permitted as per rules

Repatriable

Principal and interest amount repatriable on maturity

Repatriation of funds in NRO account restricted to USD 1m in a financial year for bonafide purposes

Taxation

Interest tax-free

Taxable as per IT norms

  NRE Recurring Deposit NRO Recurring Deposit

Product

Opportunity to NRIs to save monthly and build up a substantial corpus

Eligibility

Non-resident Indians and Persons of Indian Origin

Minimum investment

The minimum monthly instalment is 100 and in multiples of 1

Tenure

1 year to 10 years

6 months to 10 years

Source of funds

Credit from NRE Savings account

Credit from NRE/NRO Savings account

Taxation

Interest is tax-free

Taxable as per norms

Foreign Currency Non-Resident (B) Term Deposit

Product

Facility to hold the deposit in foreign currency

Currency

USD, GBP, and EUR

Minimum investment

USD 1000, GBP 1000, EUR 1000

Deposit tenure

1 to 5 years

Auto-renewal

Available

Interest payout

Reinvested and payable on maturity of the deposit

Repatriable

Principal and interest repatriable

Taxation

Interest income tax-free in India

Documents Required for Opening Bandhan Bank Fixed Deposits

Customers have to submit the standard KYC documents for ID proof and address proof when opening an FD account with Bandhan Bank. Senior citizens should provide documentary evidence of their age or date of birth. NRI customers should give evidence of their NRI status. 

Procedure to Open Bandhan Bank Fixed Deposits

There are three ways of opening Bandhan Bank FDs:

  • Phone Banking - Give a call to 033-6633 3333 or 1800-258-8181
  • Click on the 'Apply Now' option available on the FD page and submit your details. Bandhan Bank representative will contact you to complete the formalities.
  • Contacting the nearest branch of Bandhan Bank to open your FD is one of the easiest ways to do so.

How do you open Bandhan Bank Fixed Deposit online?

Bandhan Bank offers net banking and mobile banking facilities. It is possible to open FD online by applying for the same online through the Bandhan Bank official website. The procedure requires you to submit your contact details to enable the Bandhan Bank relationship manager to contact you. It is a convenient way of opening your FD.

Maturity Value Calculator

Bandhan Bank does not offer the services of a maturity value calculator on their website. However, customers have other options available on the internet. The process involves submitting information like principal amount, rate of interest, tenure, and interest payout option.

Bandhan Bank - Penalty on Premature Withdrawal

  • Bandhan Bank stipulates a penalty of 1% on the card rate for early withdrawals
  • The card rate will be the lower of the following two figures
  • The original rate of booking or the contracted rate
  • The rate applicable to the period the deposit was in force with the bank

No interest is payable on domestic fixed deposits if the tenure of the deposit is less than seven days. Similarly, no interest is payable on premature withdrawal of NRE deposits if the tenure is less than 12 months.

In the case of FCNR (B) deposits, there is no premature penalty if the withdrawal is after the completion of one year. The interest rate would be the corresponding applicable rate for the period the deposit remained with the bank. However, no interest is payable if the withdrawal is within one year of opening of the deposit.

Tax Deduction at Source on Fixed Deposit Interest

As per the latest IT rules, interest income more than 40,000 on fixed deposits in a financial year is liable for TDS. The previous limit was 10,000. Hence, Bandhan Bank deducts TDS @ 10% on all FDs where the interest income exceeds 40,000. The bank treats all the deposits standing in the name of the depositor as one for determining the TDS eligibility. Senior citizens have a benefit of 10,000. Hence, banks do not deduct tax if the interest income is less than 50,000.

Customers can submit Form 15G and request the bank not to deduct tax. Senior citizens have to submit Form 15H. Providing PAN information along with the Form 15G/H is mandatory. Otherwise, the bank treats the submission as invalid and deducts TDS @ 20%.

Bandhan Bank Fixed Deposits - Frequently Asked Questions

What are the different types of interest payouts offered by Bandhan Bank?

Bandhan Bank offers the facility of monthly interest payouts at discounted rates. It also has quarterly payouts that calculate simple interest on the deposits. The best option is to opt for the reinvestment facility where the bank compounds interest quarterly and reinvests it with the principal amount. The interest and principal amounts are payable on maturity. It increases the overall yield on the FD.

Is there any option to change the recurring deposit instalment after opening the account?

No, it is not possible to change the monthly instalment amount after opening the RD account. The best option is to open a new recurring deposit account.

Is interest on RD accounts taxable?

Yes, interest income on recurring deposits is also taxable in the same way as interest on FDs.

Can NRIs open joint accounts?

Yes, NRIs can open joint accounts with other NRIs. They can also open a joint account with their close relatives residing in India. Under such circumstances, the bank insists on the stipulation of operating instructions as 'Former or Survivor.'

Which is the better option, a loan against FD or a premature withdrawal?

It depends on the individual. If you have a short-term requirement, it is advisable to take a loan on the FD. If your need is a long-term one, you should opt for a premature withdrawal.

Can I avail loan on my Tax-Saver FD?

No loan is permitted on a Tax Saver FD during the initial lock-in period of five years. The rules do not allow any early withdrawal in this type of deposit.

Is it possible to open Bandhan Bank FD without having a savings account in the bank?

Yes, it is possible to open FD without having a savings account. However, it is advisable to have a savings account to facilitate smooth transactions such as crediting of interest or transferring the proceeds of the deposit on maturity.

How do you locate the nearest Bandhan Bank branch for opening an FD?

Visit the branch locator page and submit information about your locality. The results will show a complete list of branches in your city.

What is the advantage of having a savings account with Bandhan Bank?

Bandhan Bank offers 6% interest on savings accounts that maintain an average balance of 1 lakh.

What is the unique feature of Bandhan Bank?

Bandhan bank pays one of the highest rates of interest on FDs among all contemporary banks in India.

OTP is sent to your mobile number

Enter OTP

Resend OTP