Recurring Deposits
16 May 2019 14:19:56
Features
- Account can be opened for minimum 1 year and maximum upto 10 years.
- Quarterly Compounding Interest payable on maturity.
- Minimum amount Rs. 100/- per month and maximum no limit .
- Pledging of security allowed.
- Prepayment penalty of 1% p.a. considering the period completed.
- Nomination facility available.
- Additional interest for senior citizens.
Eligibility
Any individual, Proprietory concern, partnership firm, limited company, HUF, AOP, LLP , Body of individuals, local authority, Trust can open recurring deposit accounts.
Terms and Conditions of Recurring Deposit
- Minimum monthly deposits of Rs.100 with no maximum limit.
- Minimum period of deposit is 12 months and maximum is 60 months.
- Loan / Overdraft against the balance in RD account available.
- TDS is applicable.
- Premature withdrawal is allowed with a penalty of 1.00% below the interest
rate applicable for the period the deposit has remained with the bank. - If the scheduled payment of installments is delayed, the maturity amount shall vary, as it
will be subject to penal charges. - Penalty charges for not depositing monthly installments on time are Rs. 1.50 per
Rs. 100/- per month. - Passbooks will be issued.
- Nomination facility is available for accounts in the name of individuals.
- Once the installment amount has been fixed, it cannot be altered.
- In case there are more than two months of installments overdue, and you pay enough to
cover just one installment, it will be directed towards the first/earliest month of overdue. - Payment of a single installment cannot be divided in parts.
- Interest on RD is paid only on maturity of the same.
- Irrespective of overdue installments, an RD will mature and shall be due for repayment
on the completion of the stipulated tenure. - In case of frequent failure to pay the monthly installments, the bank has every right to
close the RD account. - No separate intimation about maturity of RD will be sent.
- No contracted rate of interest is paid after maturity of RD.
- Bank reserves right to add/modify/cancel any of rules.
Open an account
Interest Rate
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TDS
TDS will be deducted as per applicable Income Tax rule. At per the prevailing rule, TDS will be deducted if the aggregate of interest exceeds Rs.10000, unless Form 15G/ Form 15 H is submitted at the beginning of each financial year.