Recurring Deposits

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.