Following the announcement of increase in fixed deposit interest rates by a number of public and private sector lenders, Bandhan Bank has also upped its FD rates. The new interest rates came into effect on 7 November, as part of a limited-time offer. The Kolkata-headquartered bank has been offering one of the most attractive rates among lenders, with rates as high as 8 per cent. Both new deposits and renewals of maturing deposits will be impacted by the rise in the fixed deposit interest rate.
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Customers will now receive interest rates of up to 7.5 per cent on deposits within a 600-day period due to this rate hike. Senior citizens can benefit from an additional 0.50 per cent, or 50 basis points, raising their returns to as much as 8 per cent for a 600-day FD. For term deposits with maturities of less than a year, the Bank gives senior citizens 0.75 per cent or 75 bps higher interest rates. It must be remembered that NRIs are not eligible for the senior citizen rates, which are solely available to Indian citizens. Senior citizen rates can be availed only with proof of age.
On fixed deposits for a duration of 7 days to 30 days, Bandhan Bank is offering an interest rate of 3 per cent for the general public and 3.75 per cent for senior citizens. The return on deposits with a term of 31 days to less than two months will be 3.5 per cent for the general public and 4.25 per cent for senior citizens. For a fixed deposit with a term of two months to less than a year, the Bank is offering a return of 4.5 per cent for non-senior citizens and 5.25 per cent for elderly people.
For fixed deposits with terms of one year to 599 days, the general public will earn an interest of 7 per cent, and senior citizens will earn an interest of 7.5 per cent. For fixed deposits with a term of 601 days to less than five years, the general public will get a return of 7 per cent, and senior citizens will earn a return of 7.5 per cent. For deposits with a term of between 5 and 10 years, Bandhan Bank is providing a return of 5.6 per cent. For a term of 5 to 10 years, senior citizens can get a return of 6.35 per cent on an FD.
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According to income tax laws, the tax will be withheld at source from interest earned on the fixed deposit. TDS will be deducted more heavily if an income tax pan number is not submitted. One must pay a penal interest rate of 1 per cent, which is applied to the rate card if one desires to make a premature withdrawal. The rate of the initial tenure for which the deposit was recorded will be lower than the rate on the premature closure rate card.
