Savings
Bandhan Bank FD rates: 7.45% on a bucket a full year wide
Bandhan Bank pays 7.45% on two years to under three, 7.95% for seniors — above all seven majors we track. The cliff below one year, closure cost and DICGC parity.
Bandhan Bank’s retail term-deposit schedule, effective 20 June 2026, peaks at 7.45% for the general public on any tenure from two years to under three, with 7.95% for resident senior citizens. That is 65 basis points above the highest peak in our comparison of FD interest rates at seven major banks, read from their own pages on 27 August 2026. From two months to under one year the same card pays 4.20%, and below that 3.45% from 31 days to under two months and 2.95% from 7 to 30 days. From five years to ten it pays 5.85%, so the schedule rewards one range of commitments and very little else.
Rates below are read from Bandhan Bank’s own rates page on 10 September 2026 and apply to resident domestic term deposits below ₹3 crore. The bank’s note says the rate applied is the one in force when the funds reach the bank, not when the form is filled.
The buckets that actually pay
| Tenure | General | Senior citizen |
|---|---|---|
| 7–30 days | 2.95% | 3.70% |
| 31 days to under 2 months | 3.45% | 4.20% |
| 2 months to under 1 year | 4.20% | 4.95% |
| 1 year to under 2 years | 7.00% | 7.50% |
| 2 years to under 3 years | 7.45% | 7.95% |
| 3 years to under 5 years | 7.25% | 7.75% |
| 5 years to 10 years | 5.85% | 6.60% |
The card itself prints twelve rows; adjacent rows Bandhan prices identically are collapsed here. Three of the twelve — “1 year”, “1 year 1 day to 1 year 9 months” and “1 year 9 months 1 day to less than 2 years” — carry the same 7.00%, and the three rows from two months to under a year all carry 4.20%. There are no separately priced single-day tenors, no named special tenors and no commemorative numbers: the “1 year” row is priced exactly like the two that follow it.
Bandhan’s savings rate is 2.70% a year on balances up to ₹5 lakh, effective 1 August 2026, with higher slabs applied only to the portion above that. A 7-to-30-day deposit pays 25 basis points over savings; nothing under two months is worth the paperwork.
One day short of a year costs 280 basis points
A deposit of 364 days pays 4.20%; a deposit of 365 days pays 7.00%. On ₹5,00,000 held for a year, that single day is worth about ₹14,000 of simple interest before tax. On the other side of it there is no cliff: “1 year” is its own row at the same 7.00% as every day from there to just under two years.
Nothing longer than three years pays more
From 7.45% on two to under three years the rate drops to 7.25% on three to under five, and then to 5.85% from five years to ten — 160 basis points below the peak, and below the one-year row as well. Five years is the worst-paid commitment above one year, for seniors too.
One five-year deposit at 5.85% turns ₹5,00,000 into about ₹6,68,000 with quarterly compounding; a two-year deposit at 7.45%, rolled at the same rate for five years, reaches about ₹7,23,000 — roughly ₹55,000 more — but only if the card still says 7.45% on each renewal date, and the page states that rates change without notice. The premium is for accepting rate risk, not for patience.
Maturity, and the day after it
Bandhan’s policy and terms both state that a deposit opened without instructions renews automatically for a similar period at the prevailing rate. A two-year deposit booked today therefore becomes another two-year deposit in September 2028 at whatever the card says then, with the maturity value, net of TDS, rolled in. Since 19 April 2026 a renewed deposit also gets a new account number.
The alternative is worse: where a deposit matures and the proceeds go unpaid, the unclaimed amount earns the savings rate or the contracted rate, whichever is lower — a fall from 7.45% to 2.70%. Where maturity falls on a non-business day, the contracted rate is paid for the intervening day.
Three maturity instructions are available: renew principal and interest, renew principal and pay out the interest, or pay out both. Choose at booking; our FD calculator shows the maturity value for the tenure you need.
Interest is calculated daily, compounded at quarterly anniversaries on cumulative deposits and paid quarterly or monthly — monthly at a discounted rate — on payout deposits; an incomplete terminal quarter uses actual days over 365, or 366 in a leap year. Deposits of up to six months earn simple interest at maturity. The methodology page and the terms print all of it, for deposits booked or renewed on or after 19 April 2026.
Breaking it early: the rate is rebuilt, then one percentage point comes off
The rate card, the policy and the terms agree. On premature closure or partial withdrawal, interest is paid at the rate applicable to the amount and the period the deposit actually stayed with the bank — the card rate prevailing on the booking date for that shorter period, not the contracted rate — and a penal 1% then comes off that card rate.
Because the card pays 4.20% from two months to under a year, the rebuild costs far more than the penalty inside the first year. Take ₹5,00,000 booked for two years at 7.45% and closed on day 300. The period served falls in the six-months-to-under-one-year bucket at 4.20%; deduct the 1% and you receive 3.20%, or about ₹13,150 of simple interest, against about ₹30,600 at the contracted rate. Of the ₹17,500 gap the penalty accounts for only ₹4,100; the other ₹13,350 is the rebuild.
Break it on day 400 instead and the arithmetic is gentler: the period served sits in the one-year-to-under-two-years band at 7.00%, the penalty brings that to 6.00%, and the shortfall against the contracted rate is about ₹7,900, most of it the penalty. Both examples use simple interest and an unchanged card.
Five attached rules:
- No interest is payable on a deposit withdrawn within seven days of booking, per the rate card; the bank’s interest-methodology page says six days. The two pages do not match.
- Partial withdrawal is allowed, once a day.
- Closing a deposit to renew it is permitted at the rate applicable on the renewal date, provided the new deposit runs longer than the balance period of the old one; interest for the period served is still rebuilt, and the policy does not waive the 1%.
- On the depositor’s death, premature closure carries no penal charge, even inside a lock-in.
- The policy publishes no exemption from the 1% for senior citizens or staff, and Bandhan’s documents are silent, which should be read as no waiver until the branch says otherwise in writing.
For a temporary need the arithmetic favours borrowing against the deposit. Bandhan lends up to 90% of a term deposit for up to five years at the deposit’s own rate plus 1.50% to 2.00%. Borrowing ₹2,50,000 for 90 days at 7.45% plus the full 2.00% costs about ₹5,800, against the ₹17,500 lost by breaking the same deposit at day 300 — and the deposit keeps its rate and its maturity date. The lien and the margin are covered in our page on loans against an FD. No loan is available against a non-callable deposit, and those exist only in the bulk schedule.
Seniors, and the missing 80-plus column
Bandhan publishes two columns, not three, and the gap between them is not a flat half-point.
| Tenure | Uplift over the general rate |
|---|---|
| 7 days to under 1 year | +75 basis points |
| 1 year to under 5 years | +50 basis points |
| 5 years to 10 years | +75 basis points |
| Tax-saver deposit | +100 basis points |
| Age 80 and above | No separate rate published |
The extra 25 basis points appear only on the tenures the card prices worst — under a year and beyond five — so a senior earns 4.95% instead of 4.20% on a nine-month deposit but only 50 points more on the two-year peak, worth about ₹5,000 on ₹5,00,000 over two years. There is no super-senior band on the card, in the policy or in the terms.
The conditions are printed on the card: proof of age, resident Indians only, nothing on NRE, NRO or bulk deposits of ₹3 crore and above, nothing on a Hindu Undivided Family deposit even where the karta is himself a resident senior citizen, and the senior must be first-named on a joint deposit. Neither document says what happens when a holder turns 60 mid-term; the policy speaks of privileges on deposits “received from” senior citizens, which reads as a test applied at booking, so ask before assuming a repricing.
A Bandhan senior deposit is not the best home for the first ₹30 lakh of retirement money. The Senior Citizens Savings Scheme pays 8.2% for the quarter ending 30 September 2026, sovereign and paid quarterly — 25 basis points above Bandhan’s senior peak, on a five-year term the bank prices at 6.60% for the same depositor. Its ₹30 lakh ceiling, age test of 60 and exit rules are in our SCSS versus FD comparison. Exhaust it first; a two-year Bandhan deposit suits what is left over.
What Bandhan publishes separately, and what it does not
The tax-saver deposit carries its own date, 9 August 2025, and pays 6.25% for the general public and 7.25% for seniors — a full percentage point of uplift. It beats the ordinary five-year row, 6.25% against 5.85%, worth about ₹13,300 more on ₹5,00,000 over the term, but loses by a full point to an ordinary deposit one day shorter, at 7.25%. The lock-in is statutory: five years, no premature or partial closure, no auto-renewal, pay-out-only at maturity. Residents, HUFs and NRO customers may book it, and the section 80C deduction is available only under the old tax regime. The bank’s page cites the Income-tax Act, 1961, though the 2025 Act has been in force since 1 April 2026.
Bulk deposits of ₹3 crore and above have a separate card dated 9 September 2026, and the retail card is the generous one: a callable ₹3 crore to ₹10 crore deposit for two to under three years pays 5.00% against the retail 7.45%, and the non-callable bulk rate does not reach 7.45% until ₹50 crore.
What the bank does not publish is as informative. There is no non-callable retail schedule, no green deposit, no named special tenor and no floating-rate deposit — the policy reserves the right to offer one linked to an external benchmark, but prices none.
Tax takes the next bite
FD interest is taxable at your slab rate as income from other sources, in the year it accrues, whether or not the bank has paid it. A cumulative two-year deposit booked now is taxed across three financial years.
Bandhan deducts tax at source once interest across all your deposits at the bank crosses ₹50,000 in a financial year, or ₹1,00,000 for a resident senior citizen — 10% where PAN is on record, 20% where it is not — and its card repeats both thresholds. They apply bank-wide, not per deposit. On a cumulative deposit the interest reinvested is the post-TDS amount, so the maturity value on the advice is a gross figure the deposit will not reach; the bank’s own note says so.
The nil-tax declaration is Form 121, which replaced Forms 15G and 15H from 1 April 2026. It requires nil estimated liability and total income below the basic exemption limit, at any age. Bandhan’s card prints its own shorthand — annual income below ₹4,00,000 for general customers and ₹12,00,000 for senior citizens — and adds that a fresh Form 121 is needed for any new retail term deposit booked during the year. But ₹12 lakh is the new-regime rebate threshold, not the exemption limit: a senior between the two has nil liability yet is not below the limit — the false declaration our guide to tax on FD interest warns about. Check both conditions, rather than treating the card’s note as the test.
At 7.45% before tax, a depositor in the 30% slab keeps about 5.13% after cess; a senior at 7.95% keeps about 5.47%. Those are the numbers to compare with anything else.
A private bank’s ₹5 lakh is the same ₹5 lakh
On insurance, a 65-basis-point premium changes nothing. Deposit insurance covers eligible principal and accrued interest up to ₹5 lakh per depositor per bank, in the same right and capacity, after lawful set-off, at every insured bank whatever its size or ownership. The Reserve Bank lists Bandhan among India’s private sector banks, and the bank’s own footer carries its DICGC registration. Above ₹5 lakh a depositor ranks as an unsecured creditor at any bank, including the largest — the point our page on PSU bank FD rates makes from the other direction.
Scale is a different question, and the bank answers it in its investor presentation for the quarter ended 30 June 2026: 1,988 branches, 4,400 banking units, 6,388 outlets across 35 states and union territories, 31.8 million customers, and total deposits of ₹1,64,890 crore, 74% of them retail. Those are the bank’s figures, not an assessment of it.
The higher rate does interact with the cover itself. A ₹5,00,000 deposit at 7.45% crosses the limit almost immediately, because accrued interest counts: to keep a two-year maturity value inside ₹5 lakh the principal has to be capped at roughly ₹4.3 lakh — our arithmetic on the bank’s rate, not a figure either institution states — and every savings balance and other deposit at Bandhan aggregates into the same ₹5 lakh. Joint accounts, capacities and claim timing are in our page on DICGC deposit insurance. Since Bandhan pays retail more than bulk, splitting a large sum into sub-₹5 lakh pieces costs nothing and buys the cover.
Before you book
| If the money is needed in | The bucket that fits | General rate | The trap next to it |
|---|---|---|---|
| Under a month | 7–30 days | 2.95% | 25 bps over savings, and you lose access |
| Two to eleven months | 2 months to under 1 year | 4.20% | Every day short of a year pays 2.80 pp less |
| About a year | 1 year to under 2 years | 7.00% | 364 days pays 4.20%; 366 days pays the same 7.00% |
| Two years, or anything to 35 months | 2 years to under 3 years | 7.45% | Exactly 3 years drops to 7.25% |
| Three to five years | 3 years to under 5 years | 7.25% | Exactly 5 years drops to 5.85% |
| Five years, with the deduction | Tax-saver, 5 years | 6.25% | Old regime only; an ordinary deposit one day shorter pays 7.25% |
| More than five years | 5 years to 10 years | 5.85% | The longest commitment is the worst paid above one year |
Book to the date you need the money, not to the rate. Set the maturity instruction at booking; the default renews a two-year deposit into 2028 at an unknown rate. Give the branch proof of age before booking, not after. And keep the deposit advice, which the bank says can be generated only at a branch; the rate on it is the one that binds.
Common questions
Is a Bandhan Bank fixed deposit as safe as one at SBI?
On the insurance that matters to a depositor, yes. Deposit insurance from DICGC covers principal and accrued interest up to ₹5 lakh per depositor per bank, in the same right and capacity, and the figure is identical at every insured bank whatever its size or ownership. The Reserve Bank lists Bandhan Bank among India's private sector banks and the bank displays its DICGC registration on its own site. Above ₹5 lakh you are an unsecured creditor at any bank, including the largest, which is an argument for splitting a large sum across banks rather than for choosing the biggest one.
What is the senior citizen FD rate at Bandhan Bank?
The senior column peaks at 7.95% on any tenure from two years to under three, on the card effective 20 June 2026. The uplift over the general rate is not a flat half-point: it is 75 basis points on deposits under one year and on the five-to-ten-year row, 50 basis points from one year to under five, and 100 basis points on the tax-saver deposit. Proof of age is mandatory, the rate is for resident Indians only, and it is not paid on NRE or NRO deposits, on HUF deposits even where the karta is a senior citizen, or on bulk deposits. No separate rate is published for depositors aged 80 and above.
What does Bandhan Bank pay on a one-year FD?
7.00% for the general public and 7.50% for a resident senior citizen, and the same rate applies to every tenure from one year to just under two years. The card prints "1 year" as its own row and gives it the same rate as 366 days, so there is no cliff between asking for a year and asking for a year and a day. The cliff sits on the other side: 364 days and everything down to two months pays 4.20%, a gap of 280 basis points, worth about ₹14,000 of simple interest on ₹5,00,000 held for a year.
What does it cost to break a Bandhan Bank FD early?
Two things, in sequence. Interest is first rebuilt to the card rate that applied on the booking date for the period the money actually stayed, and a penal 1% then comes off that rate. Because everything from two months to under one year pays 4.20% — and less below that — breaking a two-year 7.45% deposit inside its first year is expensive: ₹5,00,000 closed on day 300 earns about ₹13,150 instead of the ₹30,600 the contracted rate would have paid, and the 1% penalty explains only about ₹4,100 of the gap. Closure on the depositor's death carries no penalty; the bank publishes no waiver for senior citizens.
Does a longer Bandhan Bank deposit pay more?
No. The card rises to 7.45% on two years to under three, falls to 7.25% on three to under five, and drops to 5.85% on five to ten years — 160 basis points below the peak and below even the one-year rate of 7.00%. A five-year deposit is the worst-paid commitment above one year on the schedule. Seniors get a softer version of the same shape, 6.60% at ten years against 7.95% at the peak. Longer tenure buys a fixed rate for longer, not a higher one.
Is the Bandhan Bank tax-saver FD better than its ordinary five-year deposit?
On rate alone it is, which is unusual. The tax-saver pays 6.25% for the general public and 7.25% for seniors, on a chart dated 9 August 2025, against 5.85% and 6.60% on the ordinary five-to-ten-year row. But an ordinary deposit of four years and 364 days pays 7.25%, a full point more, with no lock-in. The tax-saver cannot be closed or partly withdrawn for five years, cannot be auto-renewed, and the section 80C deduction it exists to deliver is available only under the old tax regime, not the default new one.
Sources
Rates and rules on this page were read directly from the following sources on the dates shown. Figures change — if you are about to act on one, confirm it at the source.
- Rates and Charges — Retail Domestic / Non-Resident Rupee Term Deposit Interest Rate Chart w.e.f. June 20, 2026; Tax Saver Fixed Deposit chart w.e.f. August 09, 2025; Savings Bank Account chart w.e.f. August 01, 2026; Domestic/NRO Bulk Deposit chart w.e.f. September 09, 2026
- Fixed Deposit — Retail Domestic / Non-Resident Rupee Term Deposit Interest Rate Chart w.e.f. June 20, 2026, and the notes beneath it
- Deposit Policy (PDF; file dated 13 August 2026 — sections 1.3, 1.4.20, 1.15, 1.17, 1.21 to 1.24 and 1.27)
- Term Deposit — Most Important Terms & Conditions (English; file dated 05 August 2026)
- Interest Calculation Methodology for Term Deposits
- Loan/Overdraft against Term Deposit
- Investor Presentation Q1FY27, 21 July 2026 (figures as on 30 June 2026)
- Websites of Banks in India — List of Private Sector Banks in India
- Guide to deposit insurance
- Interest Rate on National Savings Schemes — scheme-wise table, w.e.f. 1st April 2025 onwards (5 Year Senior Citizens Savings Scheme, July–September 2026 column)