Recuring Deposit
Recurring Deposit is a very popular investment scheme amongst the risk-averse Indians mainly because of the good returns and savings benefits that it offers. In a Recurring Deposit scheme, you will have to deposit a fixed amount of money every month for a predefined period of time and the amount will fetch you interest.
Brief features of the product
- Individual (singly or jointly) with others.
- Minor who have attained the age of 10 years and above in his/her own name on giving proof of age.
- Minors below the age of 10 years under guardianship of Natural/legal guardian.
- Proprietorship/Partnership Firm, Commercial Organization, Company / Corporate Body.
- Hindu Undivided Family
- Association, Club, Society, Trust or Religious/Charitable Educational Institutions,
- Municipality or Panchayat, Government or Quasi-Government body.
- Illiterate and blind persons can also open accounts.
- 100/- and in multiples thereof.
Terms & Conditions
- Period of RD - 6 months to 120 months in multiple of 3 months
- Premature withdrawal is allowed.
- Withdrawals on maturity or one month after the deposit of the last installment, whichever is later.
- Generally loans/overdrafts against deposits are allowed.
- Interest on overdue deposit is paid as per prevalent policy of the bank from time to time.
- Interest on bank deposits is exempt from income tax up to a limit specified by Income Tax authorities from time to time.
- Presently, if the total interest on term deposits, per depositor, per financial year, exceeds Rs 10,000/-, the same is subject to Tax Deduction at Source (TDS) at the rates stipulated by the Income Tax Authorities.
- The eligible depositor may furnish a declaration in Form No.15 H/15G preferably at the commencement of the Financial Year for receiving interest on deposits without deduction of tax.
- The Bank will issue TDS Certificate for the tax deducted
Documents required
- The Bank requires a satisfactory introduction of the person/s opening the account by a person acceptable to the Bank.
- The Bank is required to obtain two recent photographs of the person/s opening the account, as per RBI directives.
- The Bank is required to obtain a Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively obtain a declaration in Form No.60 or 61 as per the Income Tax Act (vide Section 139A) from the person/s opening the account. For further details, please contact our nearest Branch.
