Bandhan Bank Short Term FD

What is Bandhan Bank Short Term FD?

Bandhan Bank Short Term FD is a fixed deposit where you place surplus funds for a brief investment period, usually ranging from 7 days to 1 year, while receiving assured returns and a clear maturity value. These deposits are suited to meet short‑term financial goals such as emergency funds or upcoming expenses, offering a more predictable return compared with keeping funds in a savings account.

You can start these FDs with comparatively low minimum amounts, and senior citizens are given interest rates above those for general retail customers. The same tenure applies, ensuring you enjoy better returns on your fixed deposit. Bandhan Bank’s short‑term FD interest rates are published on the bank’s official site and vary by tenure and category.

Bandhan Bank Short Term FD Interest Rates

Interest rates on Bandhan Bank Short Term FDs depend on the deposit tenure and depositor category. These FD interest rates apply to retail domestic and NRE term deposits below ₹3 crore and are published on the bank’s official chart. Banks revise rates periodically, and they may vary across lenders over time:

*Bandhan Bank Short Term FD rates w.e.f. 01st September, 2025

Features of Bandhan Bank Short Term FD

Here are the key features you should know about Bandhan Bank's short-term fixed deposits:

• Short Tenure Flexibility: You can open a short‑term FD starting from 7 days up to 1 year, giving flexibility to match your short-term financial goals.
• Minimum Deposit Requirement: The minimum amount required to open a fixed deposit is ₹1,000, after which you can invest in multiples of ₹1.
• Assured and Fixed Returns: The FD holds a fixed interest rate locked in when you start it, offering you assured returns throughout the term until maturity.
• Premature Withdrawal Facility: You may close your FD before maturity with a penalty on interest, subject to the bank’s terms.
• Loan or Overdraft Against FD: The bank allows you to take a loan or overdraft against your fixed deposit, providing support with liquidity.
• Sweep‑In / Sweep‑Out Option: Eligible accounts may use a Bandhan Bank Sweep-out FD/Sweep-in FD facility to maximise returns while maintaining liquidity.
• Auto‑Renewal Facility: Once your FD matures, it can be set to renew automatically for the same tenure at the Bandhan Bank FD rates applicable at that time.
• Nomination Facility: You may assign a nominee for the FD to guarantee a smooth transfer on maturity.

How to Invest in a Bandhan Bank Short Term FD

Investing in a Bandhan Bank Short Term FD is easy and can be done online or offline through official channels, with an FD receipt issued after booking:

Online Method

You can open a short-term FD online through Bandhan Bank’s digital platforms without visiting a branch:

• FD Booking: Log in to Internet Banking or the mBandhan app and select “Open Fixed Deposit.”
• Tenure & Amount Selection: Choose the short-term tenure, deposit amount, and payout option.
• Nominee & Details: Enter the nominee and basic personal details.
• Source Account Selection: Choose the account for debit.
• Confirm & Submit: Review and confirm the FD request.
• Digital FD Receipt Issuance: Receive the FD receipt digitally.

Offline Method

If you prefer direct assistance, you may make investments by visiting a branch.

• Branch Visit: Visit the nearest Bandhan Bank branch.
• FD Application Submission: Fill and submit the FD form.
• KYC Verification: Complete document checks.
• Deposit Funding: Fund via cash, cheque, or transfer.
• Form Processing: The bank processes the request.
• Physical FD Receipt Issuance: Collect the FD receipt after approval.

Eligibility Criteria for Bandhan Bank Short Term FD

Here are the key eligibility requirements for opening a short term FD in Bandhan Bank:

• Resident Investors Eligibility: You may open a fixed deposit account if you are an Indian resident or NRI aged 18 years or more. Minors require a guardian.
• Savings or Current Account Requirement: You need to keep or open a savings/current account with the bank to ensure the debit of the FD amount.
• Minimum Age Criteria: Investors must be at least 18 years old; a guardian is required for minors.
• Mandatory KYC Compliance: Valid KYC documents (PAN/Aadhaar/ID proofs) are needed.
• Minimum Deposit Threshold: A minimum of ₹1,000 is required.

Tax Aspects of Bandhan Bank Short Term FD

Interest you earn on a Bandhan Bank Short Term FD is taxable and must be included under “Income from Other Sources” when you file your income tax return, even if the bank does not deduct tax at source. Tax Deducted at Source (TDS) is applicable if your total FD interest in a financial year exceeds the prescribed thresholds set under the Income Tax Act; traditionally, interest above ₹50,000 for general investors and ₹1,00,000 for senior citizens attracts TDS unless exempted.

You may avoid TDS deduction by submitting a Form 15G (for resident investors below 60) or Form 15H (for senior citizens) to the bank if your total income is below the tax‑exemption limit.

Even if TDS is not deducted or is deducted, you must declare all FD interest in your income tax return and pay tax (if any) according to your slab.

Key Takeaways

Bandhan Bank short‑term FDs provide you with reliable returns, offering interest rates from 2.95% to 7.00% p.a. for general depositors and 3.70% to 7.50% p.a. for senior citizens on deposits held for periods up to one year. Compare interest rates and terms across banks before making an investment to match your financial requirements.