Recurring Deposits

Points to Note

• When a deposit is withdrawn prematurely, interest is calculated at the rate in effect for the time that the deposit has actually been held by the Bank at less than 1% penalty.

• Simple interest will be used to calculate interest at maturity for term deposits with a duration of less than 181 days.

• The interest on term deposits will be paid out monthly at a reduced rate determined by the current rates.

• According to the current income tax regulations, tax is withheld at the source.

• On resident time deposits with interest income of at least INR 10,000 during the financial year, TDS at a higher rate of 20% will be charged in the absence of PAN information.

• Penalty for missing instalments will be 1% of instalment amount for each month instalment is missed. This penalty will be deducted from maturity/premature amount.

• The maximum tenure for RD reserved through online channels is 10 years.

• Any missed installment shall be subject to a penalty in accordance with the policy.

• On premature Withdrawal of the Recurring Deposit, the interest will be calculated at the rate applicable for the period for which the Recurring deposit has actually remained with the Bank, subjected to a penalty of 1%. However, there is no penalty for premature withdrawal of Recurring Deposit by senior citizen /super senior citizens.