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Gramin Bank Fixed Deposit (FD) Rates and Features

  • Writer: ayush kumar
    ayush kumar
  • Dec 28, 2024
  • 3 min read
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Gramin Bank Fixed Deposits (FDs) offer a safe and rewarding investment option, particularly for individuals in rural areas. With competitive interest rates and flexible tenure options, they provide an excellent alternative to traditional commercial bank FDs. Here’s everything you need to know about Gramin Bank FDs, including interest rates, features, and account opening steps.


What are Gramin Bank Fixed Deposits?

Gramin Banks, officially known as Regional Rural Banks (RRBs), were established by the Government of India to support rural economic development. They aim to meet the basic banking needs of people in rural and semi-urban areas.

Gramin FDs are:

  • Safe investments with guaranteed returns.

  • Offering higher interest rates compared to many commercial banks.

  • Flexible with a tenure range of 7 days to 10 years.


Gramin Bank FD Interest Rates for 2024

Bank Name

Regular Rates

Senior Citizen Rates

Madhya Pradesh Gramin Bank

3.0% – 7.25%

3.0% – 7.75%

Kerala Gramin Bank

3.3% – 7.45%

3.8% – 7.95%

Rajasthan Marudhara Gramin Bank

3.0% – 7.1%

3.0% – 7.6%

Andhra Pragathi Grameena Bank

4.0% – 7.5%

4.0% – 8.0%

Saptagiri Grameena Bank

4.0% – 7.9%

4.5% – 8.4%

Karnataka Gramin Bank

3.25% – 7.15%

3.75% – 7.65%

Punjab Gramin Bank

3.5% – 7.25%

4.25% – 8.0%

Maharashtra Gramin Bank

3.75% – 7.2%

3.75% – 7.7%

Note: Rates are accurate as of December 2, 2024. Please verify with the respective bank.


Key Features of Gramin Bank FDs

  1. Tenure: Choose between 7 days to 10 years, depending on your financial goals.

  2. Interest Rates: Range between 3% - 7.75%, with additional benefits for senior citizens.

  3. Minimum Deposit: Start investing with as little as ₹100.

  4. Premature Withdrawals: Allowed with a penalty on the contracted interest rate.

  5. Loan Facility: Borrow against your FD, with interest rates varying by bank.

  6. Taxation: Interest earned is taxable as per your income tax slab. TDS is applicable based on prevailing IT rules.

  7. Nomination and Auto-Renewal: Available to ensure convenience.


Who Can Open a Gramin Bank FD?

Eligible entities include:

  • Indian citizens

  • Hindu Undivided Families (HUFs)

  • Partnership firms

  • Local bodies

  • Companies and government departments


Documents Required

To open an FD, you need to submit two of the following as identity and address proof:

  • Aadhaar Card

  • PAN Card

  • Voter ID Card

  • Driving License

  • Passport

  • Senior citizen card (if applicable)


How to Open a Gramin Bank FD Account?

Follow these steps:

  1. Visit the Bank Branch: Locate the nearest Gramin Bank branch.

  2. Fill the Form: Complete the FD account opening form with details such as name, contact number, PAN, and nominee details.

  3. Choose Tenure: Specify your preferred FD duration.

  4. Deposit Funds: Pay via cheque, cash, or online transfer.

  5. Submit Documents: Attach mandatory ID and address proofs.

  6. Verification: The bank will verify your details and provide an acknowledgment.


Benefits of Gramin Bank FDs

  1. Higher Interest Rates: Competitive rates compared to commercial banks.

  2. Flexible Options: Suitable for short-term and long-term savings.

  3. Loan Support: Use your FD as collateral for a loan.


Frequently Asked Questions

1. What is a Gramin Bank?

Gramin Banks are Regional Rural Banks (RRBs) set up under the RRB Act 1976. They are jointly owned by:

  • The Government of India (50%)

  • A sponsor bank (35%)

  • State government (15%)

2. Which Gramin Bank offers the best FD rates?

Currently, banks like Saptagiri Grameena Bank and Punjab Gramin Bank offer some of the highest rates, reaching up to 8.4% for senior citizens.

3. Can I withdraw my FD before maturity?

Yes, premature withdrawals are allowed, subject to a penalty on the interest rate.


Gramin Bank FDs: A Safe Bet for Steady Returns

Gramin Bank FDs are ideal for risk-averse investors seeking secure and higher returns. Whether you're saving for short-term goals or building a retirement corpus, these FDs can be a cornerstone of your financial plan. With competitive rates and added perks for senior citizens, they offer a reliable and straightforward investment option.

 
 
 
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