It is one
kind of Recurring Deposit with the flexibility of monthly installment. Interest earned under this scheme is not applicable to TDS.
Account may be opened in the name of individuals, singly or jointly.
Rate of Installment :
- Core monthly installment : Rs.50/- or in multiple thereof.
- Depositor has to deposit core deposit compulsorily but has the option to deposit
more than the core amount.
- in any particular month, monthly installment will not exceed ten times of the
Period of Deposit :
For any period between 3 years and 10 years in multiple of complete quarter.
Rate of Interest :
As applicable to Term Deposit and payable half-yearly in September and March every year on the monthly product of Minimum balance maintained between 10th and last day of each month.
Premature Closure :
Premature closure is allowed but penalty for premature closure will be as applicable for normal term deposit scheme.
Loan against Deposit :
Loan as per prevailing rule of the Bank
Interest earned under this scheme is subject to Tax Deducted at source w.e.f. 01 June 2015 as per directives of Income Tax Authority u/s 194A.
- Monthly installment is flexible