Fixed Deposit

Will I get a FD receipt?

Yes, you will get FD receipt. But, you will not be issued a receipt for FD opened through Internet Banking.

Can I redeem my FD before the original term?

Yes, FD can be closed before the original term of the FD. In the event of the Fixed Deposit being closed before completing the original term of the deposit, interest will be paid at the rate applicable on the date of deposit, for the period for which the deposit has remained with the bank. In case of premature withdrawal the deposit may be subject to penal rate of interest as prescribed by the Bank on the date of deposit.

Can I obtain a loan from the bank on the security of my FD?

Yes, Loan facility is available up -to 90% of principal and accrued interest.

Is there any auto renewal facility available on FDs?

Yes, you can opt for auto renewal at the time of opening the FD or anytime before the FD matures. Auto renewal allows your FD to get renewed automatically for the same period as the original deposit. However under auto renewal option the fixed deposit receipt is with the custody of the Bank and Memorandum of Deposit (MOD) is issued in lieu of fixed deposit receipt.

How do I redeem my FD?

After maturity of your FD, you can walk into the bank branches across the country and claim your deposit by furnishing your Fixed Deposit receipt/Memorandum of Deposit.

At what frequency will I receive interest on my FD?

For the Traditional scheme, the interest on the Fixed Deposit (FD) account is credited to the Savings account specified by you on a monthly basis or on a quarterly basis. For the reinvestment scheme, the interest is compounded to the principal amount on a quarterly basis.

Is TDS applicable on FDs?

Tax is deducted at source, from the interest on Fixed Deposits, as applicable, as per the Income Tax Act, 1961.

At what rate is TDS deducted?

TDS on fixed deposits is deducted at the following rates for the following category of account holders: Type of Account Holders - TDS (%)

What are nomination facilities available on FDs?

The facility of Nomination is available for relationships in the names of individuals. Unless otherwise specifically given in writing by depositors, nomination in deposit accounts will be at Customer ID level.

What is the maximum deposit amount insured by the DICGC?

Each depositor in a bank is insured Upto a maximum of Rs.1, 00,000 (Rupees One Lakh) for both principal and interest amount held by him.

What are the Benefits of Fixed Deposits?