Bank Deposits

  • Savings Account
  • Fixed Deposit
  • Term Deposit
  • Recurring Deposit
  • Certificate of Deposit

Savings Account
This is the savings account that bank offers to inculcate the habit of savings amongst its customers. BANK is known to mainly offer two kinds of savings account

Savings Account: This is a simple account where you can park your savings. It has a debit card also; money multipliers and one can be in name of single or joint account holder’s name. You get interested on a quarterly basis and there are no minimum amount criteria for same.

Savings Plus: This is the second kind of account offered by BANK. In this account, the account holder opens the account for the tenure of minimum one to maximum five years. The minimum amount is INR. 5,000 and once the threshold limit is exceeded, the funds sweep into the placement of a term deposit.

Required documents for open a Savings Account
For Individual

Two latest passport size photographs
Address and identity proof

For Hindu Undivided Family
Two latest passport size photographs of a couple
PAN/Wedding card for a couple

Fixed deposit

  • This is the safest and lowest risk mode of investment.
  • Lock-in-period is 6 months to 10 years.
  • Minimum deposit required to open is INR. 1,000 to INR. 10,000 and varies to the bank to bank. There is no upper limit.
  • As per the contract, you will keep a certain amount of money for a fixed tenure with the bank and against which, the bank will pay you a fixed amount of interest.
  • It is the most lucrative form of investment. The interest earned differs from time to time depending on the economic and fiscal policies of the country.
  • One can easily break the contract any time they want for which they might have to pay some penalty or charges depends on criteria.
  • Interest rates on FD may change for every 3 months.
  • Interest earned on bank FD is fully taxable, unlike the interest earned on savings accounts are exempted up to Rs.10000/- for the financial year.
  • The interest rate will be comparatively more to the senior citizens than individuals to the extent of 0.25% to 0.75%

Required documents for open a Savings Account
Same as Savings Account

Recurring Deposit

  • Recurring Deposit schemes aim to inculcate a regular habit of saving among the public.
  • BANK also having various kinds of recurring deposits. If you are one of those, who cannot do a fixed deposit or a term deposit as you do not have surplus fund with you at one go, then recurring deposits is the best bet you have.
  • Tenure: 6 months to 10 years
  • The minimum amount that can be deposited varies from bank to bank. It can be an amount as small as Rs.10.
  • In the case of a recurring deposit, you get the liberty to save a small amount every month.
  • This is a better possible way to save money in the long run.
  • After years of recurring, you can use the accumulated money to fund depends on situation/pre-planned/any…Viz., child’s education, marriage or even buying a car.
  • Since these are monthly investments you get the liberty of investing in significant amounts.
  • This is also flexible in nature and gives you the chance to invest for as long.
  • BANK is also, known to offer overdraft. Also, as compared to term deposits or fixed deposits, there is no TDS deducted on the interest income in case of recurring deposits.
  • Premature and mid-term withdrawals are not allowed. However, the bank may allow closing the account before the maturity period, sometimes with a penalty for premature withdrawal.
  • The Recurring Deposit can be funded periodically through Standing Instructions which are the instructions given by the customer to the bank to credit the Recurring Deposit account every month from his/her Savings or Current account

Required documents for open a Savings Account
Same as Savings Account

Term Deposit

  • This is another mode of avenue to invest in banks.
  • Term deposits are known to offer one of the best rates of interest in the banking sector.
  • Through term deposit, you can save your surplus money and help it grow steadily with a fixed rate of interest as agreed upon.
  • Term deposits can be of ranging from 7 days to 10 years depending on what is the time frame you want to go with based on criteria.

Certificate of Deposit:

  • It is a savings certificate with a fixed or pre-determined maturity date, with a specific rate of interest and can be issued in any denomination.
  • A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand.
  • It needs minimum investment requirements.
  • A CD restricts access to the funds until the maturity date of the investment.
  • When the CD matures, the entire amount of principal, as well as interest earned, is available for withdrawal.
  • No loans will be issued in acceptance of CDs.
  • CD will be issued to any individual even for residents but non-resident.
  • If CD issued by banks and same will be notified to RBI and Financial Markets Departments.
  • The minimum amount of a CD should be INR.1 lakh, i.e., the minimum deposit that could be accepted from a single subscriber should not be less than INR.1 lakh, and in multiples of INR. 1 lakh thereafter.

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