- Deposits are accepted for fixed period.
- Nomination facility available in individual and joint account.
- Monthly and Quarterly payment of interest on Fixed Deposit.
- Premature payment available (Terms and conditions apply)
- Loan and Over Draft facility against the deposit is available (As per RBI uideline).
- Standing instruction for transferring the interest to SB A/C accepted.
- Separate KYC not required, if already having Savings Account/Current Account with the Bank.
Rules & Regulations of Fixed Deposit Scheme
- Depositor has to fulfil KYC norms as per RBI directive.
- Customer can Open Fixed Deposit A/c with minimum of Rs.500/-
- Guardian can open Minor’s Fixed Deposit A/c. When minor turn major then after providing valid age proof he/she can withdraw the amount with his/her own signature.
- In the case of premature payment of fixed deposit,the period for which the deposit remained with the Bank will be considered and the interest rate applicable for that period (the rate applicable on the date of original deposit) (minus 1% penalty) will be payable.
- The maturity amount is payable on maturity date. The deposit can be renewed from the maturity date within 14 day of its maturity. Thereafter deposit will be renewed with the rate applicable on the date of renewal and for the gap period i.e. from maturity date to the new renewal date the simple saving bank interest rate will be given.
- TDS on interest will be applicable as per Income Tax Rules.
- To avail non deduction of tax at source for resident Indian, you may submit form 15G for individuals whose age is less than 60 years and form 15H for senior citizen aged 60 and more.
- If the interest income (paid/credited) on fixed /recurring deposits for the financial year for all the bank branches exceeds the maximum exemption limit as per the finance act as provided u/s 197A(1B) of income tax act then TDS will be deducted even if you have submitted form 15G/H.
- A fresh form 15G/H client wise is required to be submitted at the beginning of the each financial year.
- If PAN details are not submitted or invalid then TDS will be deducted at the rate of 20% and if valid PAN details are submitted then it will be at the rate of 10%.
- TDS in respect of interest earned on fixed deposits is deducted on the basis of the total interest projected on the aggregate of fixed deposits of customer, for the financial year. Thus, if the total projected interest in a financial year crosses the threshold limit which is presently 10000/-, TDS is deducted proportionately from existing fixed deposits at the time of interest application. This is in accordance with Section 194 A 3(i) (a) of the Income Tax Act.
Requirements to Open Bank Account : For this refer to General Requirements for Account Opening/Deposit Accounts