This is a term deposits repayable after an agreed period fixed at the time of deposit. It will include both deposits made for a fixed period and deposits made subject to notice of withdrawal.
Eligibility and Target Group:
Fixed Deposits can be opened in the name of:
Joint names of two or more individuals,
Clubs, Association, Societies, Trusts, etc.
Minor under the guardianship of the natural guardians or guardians appointed by the Court of Law
Partnership or Proprietory concerns.
Rate of Interest:-
The Rate of Interest is determined with reference to the period and quantum of deposit and is subjected to the guidelines issued from time to time by the Bank.
Additional Rate of Interest:-
The rate of interest to certain category of depositors like Senior citizens, bank staff, a Banking Institution, Group Insurance Directorate, Insurance Fund and Insurance Society, etc. are different from that applicable in case of deposits of other public and the additional interest to these categories are prescribed by Bank from time to time.
Computation And Payment Of Interest :-
The interest should generally be computed at quarterly or larger rests and not on monthly basis as per the directives of the Reserve Bank of India. However, if monthly payment of interest is insisted upon by any depositor, branches may agree to do so, provided that the amount of interest paid every month is not more than the discounted value of the interest for one month so that even if interest is allowed on the interest so paid, the aggregate interest amount paid would not exceed one month’s interest on the deposit calculated on a quarterly basis.
The interest on deposits repayable within six months (short term deposits) should be paid for the actual number of days on the basis of 365 days in a year. On deposits repayable after six months and where the terminal month is incomplete, interest should be paid for the completed months on a actual months basis and for the incomplete month on the actual number of days of the deposit in that month on the basis of 365 days in a year. When the deposit is repayable after six months and where the terminal month is complete, the interest should be paid on the basis of actual months completed.
Loan facility is available against pledge of FDR receipts observing the prescribed procedure for such loans.
INCOME TAX ON FIXED DEPOSIT INTEREST:-
TDS is applicable on such deposits as per guidelines issued by Govt. of India from time to time.
Note:- For more details,please contact our nearest Branch of Zila Sahkari Bank Ltd. Haridwar.