Fixed deposits
Fixed deposit (FD) is an account where a sum of money is kept with the Bank, whereby the Bank pays interest at a pre-determined rate for the time duration of the deposit. The rate of interest paid for fixed deposit varies according to amount, period and from bank to bank. At the end of the term, the principle and interest is returned back to the customer. Generally fixed deposit can be opened for a minimum period of 7 days to maximum of 10 years.
The general features of a FD are as below:
- The main purpose of fixed deposit account is to enable the customers to earn a higher rate of interest on their surplus funds
- Tax is deducted at source, from the interest on Fixed Deposits, as applicable, as per the Income Tax Act, 1961
- The interest on the FD account is credited to the savings account specified by the depositor on a monthly basis or on a quarterly basis
- Minimum Initial FD Principal is Rs. 1,000
- Reinvestment Option available
- Part Withdrawal Facility available
- Auto Renewal Facility
- Loan / OD Facility
- Doorstep Banking
*Premature closure penalty of 1 % on interest shall apply . Please contact your branch manager for further details.