Fixed Deposits
Fixed Deposits
Fixed Deposits
1. Who can open an account:
- Individual in his own name.
- Two or more individuals in their joint names with suitable repayment instructions.
- A natural guardian (Father or mother) or the guardian appointed by the court of law on behalf of a minor.
- In the name of Co-op societies, clubs, associations, educational institutions, trusts, firms, partnership concerns, joint stock companies, executors and administrators.
2. Mode of opening an account:
- An account can be opened with a minimum amount of just Rs.1000/-. The depositor should give an application in the prescribed form.
3. Period of Deposit:
- Under the scheme, customer can choose the period of deposit to suit his needs, from a minimum of 7 days to a maximum of 120 months.
4. Interest:
- The interest on Fixed Deposit will be paid at rates fixed by the Bank from time to time Interest is paid at quarterly rests. If required, monthly interest may be paid at discounted rates.
5. Repayment on Maturity:
- The deposit is repayable on the maturity date as indicated on the deposit receipt.
6. Premature Closure:
- The depositor can close the account prematurely. In such case interest will be paid at 1% less than the rate applicable for the period for which deposit remained with the bank. In the event of the death of the depositor while paying deposit prematurely deducting 1% of interest will not be applicable.
7. Renewal /Autorenewal of Matured Deposits:
- The total amount of overdue deposits or part thereof can be renewed from the date of its maturity till some future date provided the renewal must be for a minimum of 15 days, beyond the date on which it is renewed and the renewal is made within 14 days from the date of maturity. The interest is payable at the appropriate operative rate on the date of maturity of original deposit and is payable only on the amount of the deposit so renewed. Automatic Renewal Facility is also available. A request letter is to be obtained from the depositor at the time of making fresh/renewal of deposit for the first time. Each renewal is to be treated as a fresh contract and the rate of interest prevailing as on the date of renewal / due date shall be the new rate applicable for the renewed deposits.
8. Loan against deposits:
- Depositor can avail a loan upto 85% of the deposit amount. Interest on loan will be levied at a rate 1% higher than the rate of interest paid on the deposit.
9. Transfer of Deposit Account:
- The fixed Deposit account can be transferred from one branch of bank to the other branch on the request of the depositor after maturity only.
10. Nomination facility:
- Nomination Facility is compulsory in case of individual. Necessary application is to be obtained from the depositor and entries are to be made accordingly in the Banks records.
