Allahabad Bank offers three major Recurring Deposit Schemes; the normal RD account, all bank money Plus account (Variable RD account) and the monthly Plus scheme. Normal RD account has the standard range of features and benefits to the depositor. You can accumulate the amount of interest as well as the principal amount after completion of the tenure.
All Bank Monthly Plus provides its customers with flexibility i.e., the monthly deposit can be ten times the principal deposit. You can open the RD account with a minimum deposit of 500 rupees. In both the schemes no penalty is charged by the bank if the customer fails to make the monthly deposit payment.
Interest rates offered on the Allahabad Recurring Deposit schemes can range between 7%-7.25% per annum and the amount is compounded on a quarterly basis. Tenure of the investment determines the interest rate which will be applicable on the deposit.
The deposit term for Allahabad Bank RD schemes is 180-269 days and 270 days less than 12 months. The interest rate that is applicable per annum on these deposits cannot exceed 1 crore. For 180-269 days, the interest rate offered is 7% and the interest rate provided for 269-less than a year term is 7.25% for regular customers.
From Allahabad Bank, the customers can avail medium and long-term RDs at an attractive rate of interest. However, as the tenure goes up, the interest rate also keeps declining. For medium-term deposit which ranges from 1 year- less than two years, the interest rate applicable is 7.25% and the interest rate applicable on the medium term RD for a tenure of 5-10 years is 7%.
For senior citizens who open an RD account with Allahabad Bank, they do not receive any differential interest rate. So for a Recurring deposit below one crore for the tenure of 180-269 days is 7% and for 270 days to less than a year, the rate applicable is 7.25%. For medium deposit term that ranges from 1 year to less than 2 years, the rate of interest applicable is 7.25% and for a long-term deposit of 5-10 years, the applicable interest rate is 7%.
Monthly Plus Scheme
This scheme offers the customers with only a long-term deposit tenure and the customers can either opt for tenure that is more than 5 years but less than 7 years. The applicable rate of interest for both senior citizens and regular customers is 7.25%