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Abhyudaya Bank FD Interest Rates

Abhyudaya Co-operative Credit Society Limited was started by social workers and labour movement activists to serve the causes of mill workers, other industrial, lower-middle-class groups and neglected...Read More

Abhyudaya Bank Fixed Deposit Interest Rates

Note: All interest rates are updated as of 30 Jan 2024
TenureFor General Citizen (p.a)For Senior Citizen (p.a)
7 days to 90 days4.25 %4.5 %
91 days to 180 days5.5 %6 %
181 days to 12 months6.6 %7.1 %
Above 12 months and upto and inclusive of 24 months7 %7.5 %
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Above 24 months and upto and inclusive of 36 months
7.6 %8.1 %
Above 3 years to 5 years6.25 %6.5 %
Above 5 years and up to 10 years6.25 %6.5 %

Types of Abhyudaya Co-operative Bank Fixed Deposits

Fixed Deposits are a secured investment instrument in which a lump sum amount is deposited for a fixed tenure at a predetermined interest rate. The interest rate offered under fixed deposits is higher than in saving bank accounts. Let’s know more about the types of FD Abhyudaya Co-operative Bank offers:

Monthly Income Deposit Scheme

You can open this deposit by investing as low as ₹500. The Minimum tenure for a deposit under this scheme is 7 days, and you can invest a maximum of up to 10 years. The interest payout is monthly. Interest will be paid either in cash or credited to the depositor's bank account. The Depositors can avail a loan against FD to the extent of 90%.

Quarterly Interest Deposit Scheme

You can open this deposit by investing as low as ₹500. Interest payout is quarterly, which can be paid in cash or credited to the depositor's bank account. The depositors can avail loan against FD to the extent of 90% of the amount accrued.

The Fixed Deposit Receipt

The minimum amount of deposit is ₹500. You will receive the interest at the time of maturity. The minimum tenure of this deposit is 7 days, and it goes up to 10 years.

Quarterly Interest cum Reinvestment Plan

The minimum amount of deposit will be ₹500. The bank will pay the interest amount at the time of maturity. The depositors can avail loan to the extent of 90% of the deposit amount.

Abhyudaya Tax Saving Scheme (ATSS)

The depositor can claim a tax deduction of ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. The minimum deposit amount in this scheme is ₹5,000, and then in the multiples of ₹100, the maximum amount acceptable under this scheme is ₹1.5 lakhs per annum. There is a lock-in period of 5 years; premature withdrawal is not permissible. However, in case of the depositor's death, premature withdrawal is permissible even during the lock-in period. The depositor cannot avail credit facility against the amount of the deposit. In the case of a joint account, only the first holder is entitled to a tax benefit. A nomination facility is also available.

Pros of investing in Abhyudaya Co-operative Bank’s Fixed Deposit

  • The bank allows premature withdrawal of deposits subject to penalty.
  • If the depositor does not want to withdraw a fixed deposit prematurely, they can also consider taking a loan/overdraft against fixed deposits as an alternative funding option. This facility is not available for the Abhyudaya Tax Saving Scheme.
  • Deposit Insurance and Credit Guarantee Corporation (DICGC) will grant insurance coverage for fixed deposits. The maximum amount of insurance coverage is ₹5 lakhs. 
  • Depositors can invest in Abhyudaya Tax Saving Scheme and claim a deduction of up to ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. However, there is a lock-in period of 5 years.
  • One can easily make a fixed deposit by using internet banking.
  • They offer additional interest to senior citizens higher than rates for regular citizens.
  • You can open the FD with a minimum deposit of as low as ₹500.

Cons of investing in Abhyudaya Co-operative Bank’s Fixed Deposit

  • Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation. 
  • Fixed-rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.

Abhyudaya Co-operative Bank Fixed Deposit Eligibility Criteria

The following can open a deposit with the Abhyudaya Co-operative Bank:

  • Any person in an individual capacity or more than one person in their joint names, any minor jointly with a guardian,
  • Sole proprietary concerns,
  • Partnership firms,
  • Limited companies, 
  • Associations, clubs, societies, etc. 
  • Trusts, 
  • Joint Hindu Families (accounts of non-trading nature only), 
  • Municipalities,
  • Government and Quasi-Government Bodies,
  • Panchayats,
  • Religious institutions, 
  • Educational institutions (including Universities), and
  • Charitable institutions.

Documents required for Abhyudaya Co-operative Bank Fixed Deposit

Know Your Customer (KYC) norms are mandatory for opening a bank account in India. The following documents are required to comply with KYC norms:

  • Proof of identity:  PAN card, driving licence, Passport, Voter ID card, Aadhaar card, Government/Defence ID card.
  • Proof of residence: Aadhaar card, electricity bill, telephone bill, ration card, bank account statement, a letter from statutory authority/ local body, Income Tax Order.
  • Proof of date of birth: Since higher interest rates are offered to senior citizens, you need to submit a document stating the date of birth, like a passport, Voter ID card, driving licence, PAN card, Service Discharge Certificate, and PPO in case of the pensioner.
  • In case of minors: Birth certificate issued by Gram Panchayat/Notified Area Committee/ Municipal Corporation.
  • It would be best if you also gave a recent passport-size photograph.

How to open a fixed deposit account with Abhyudaya Co-operative Bank?

For a depositor who is an existing account holder of the bank (having savings or current account) fixed deposit can be opened using the following procedure:

By Login into internet banking 

Step 1: Visit the Abhyudaya Co-operative Bank website, and navigate to the “Personal Login” tab. Provide username and password to log in.

Step 2: Go to the “Fixed Deposit Tab”

Step 3: Enter all the details.

Step 4: Verify details and click confirm. A confirmation message will be displayed on the screen.

By using a Mobile App

Step 1: Download the Abhyudaya Co-operative Bank Mobile App and log in using your credentials.

Step 2: Select the 'Open FD' option from the app's main menu.

Step 3: Choose the type of deposit account you want to open based on your preferences and requirements.

Step 4: Provide all the necessary details, including your personal information, nominee details, and payment and maturity instructions.

Step 5: After you have verified all the details, click on the 'Confirm' button to complete the transaction. 

Once the transaction is completed, you should receive a confirmation message on the screen indicating that your FD account has been opened.

Offline Mode 

Step 1: Visit the nearest branch of Abhyudaya Co-operative Bank.

Step 2: Ask for a fixed deposit application form and fill in all the details.

Step 3: Submit all the documentary proofs. 

Step 4: Deposit the money.

Step 5: Collect the Fixed Deposit Receipt.

Abhyudaya Co-operative Bank Fixed Deposit Premature Withdrawal

  • Abhyudaya Co-operative Bank allows premature withdrawal of all FDs. The penalty for premature withdrawal is 1%.

Tax implications on Abhyudaya Co-operative Bank FD

According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.

In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:

  • Taxpayers can invest in FD either through public or private sector banks. 
  • Individuals and HUFs can avail tax deductions by investing in tax savings FDs. 
  • Bank's five-year tax saving FD offers exemptions under Section 80C. 
  • Investors cannot get loans against these FDs. 
  • In the case of joint holders, only the first holder can get tax benefits. 

How to claim tax benefits?

When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs. 

Tax Deducted at Source (TDS)

  • TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year. 
  • For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.

FAQs

What will happen if the depositor furnishes an incorrect PAN?

If the depositor furnishes an incorrect PAN for a fixed deposit, the bank may deduct tax at a higher rate of 20% instead of the prescribed rate of 10% or as applicable under income tax rules. The depositor may also face legal and financial implications as furnishing incorrect PAN details violates income tax laws. Therefore, ensuring that the PAN details are accurate while opening a fixed deposit account is crucial.

Are there charges at the time of opening/maturity of Fixed Deposit?

There are no charges at the time of opening/maturity of the fixed deposit. However, there is a penalty in case of premature withdrawal. Moreover, the bank may deduct TDS (Tax Deducted at Source) at the rate of 10% if the amount of interest exceeds ₹40,000 (₹50,000 in the case of senior citizens).

Is the ₹5 lakhs DICGC insurance cover applicable on Abhyudaya Co-operative Bank FD?

Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Abhyudaya Co-operative Bank FD.

What happens when the deposit is withdrawn within 7 days of Auto Renewal of the deposit?

They will not pay interest if you withdraw the deposit within 7 days of the auto-renewal. However, after completion of 7 days from the date of auto-renewal, the bank will pay the interest at the rates applicable after deducting a penalty of 1% for the period the deposit has remained with the bank.

What happens when the investor loses the FD certificate issued by the bank?

If a fixed deposit certificate is lost, the depositor must inform the bank and apply according to the rules. The bank will issue a duplicate certificate with the deposit details, charging fees as applicable. Immediate reporting of the loss is necessary.

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Abhyudaya Bank

Calculate Abhyudaya Bank FD Returns

₹1,00,000
Above 24 months and upto and inclusive of 36 months
7 days to 90 days91 days to 180 days181 days to 12 monthsAbove 12 months and upto and inclusive of 24 monthsAbove 24 months and upto and inclusive of 36 monthsAbove 3 years to 5 yearsAbove 5 years and up to 10 years
7.6 %
Yes
No
Maturity Amount₹1,15,221

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