Term Deposit accounts which are also called term deposit also includes the deposits reveived by the bank for a fixed period and a fixed rate of interest specified in advance. Such deposits are repayable either on Monthly , Quarterly or on the expiry of a specified period as indicated by the depositor. The periodicity of such deposits is generally starts from 7days and extended upto 120 months. All types of customers including Minor can open Term Deposit Account if otherwise categorically restricted. Senior Citizen gets special privilege on Interest rate.
Type of Terms Deposit are:-
Fixed Deposit :- Interest is calculated on Simple Basis. Payable either on Maturity or quarterly basis.
Monthly Income Scheme:- Popularly known as MIS. Interest is served on Monthly basis as per prevailing Industry practice.
Cash Certificate:- Interest is paid on Maturity, calculated on Compounded Basis.
Term Deposit with facility U/s 80C as per Income Tax Act. 1961. Tenure minimum 5yrs Lock-in-period and No pre-maturity and Loan against deposit facility.
Recurring Deposit Account:- A Recurring Deposit or cumulative deposit account is a variation of Savings Bank account. It is an account intended to develop habits of savings on regular basis by the depositor with limited means. In this account type the depositor commits to deposit a fixed amount for a fixed period of time (for example Rs 100 every month for 12 months) and gets a lump-sum amount at the end of such period. The depositor does not get any interest in the intervening period. The terms i.e. fixed amount, interval and fixed time period that is decided at the time of opening the deposit can not be altered.
All types of customers including Minor over the age 12 year with few exceptions.
Rs50.00 and in multiples of Rs.50 thereof .The installment of any calendar
month shall be paid on or before the last working day of that month
Standing instructions are accepted for transfer of monthly installment from
the depositor's SB or Current Account
Nomination facility is available only for the individual & joint accounts , as
per ‘ The Co-operative Banks (Nomination) Rules, 1985’