Accounts
Deposit Schemes
What is Fixed Deposit?
Fixed Deposit account is an attractive scheme to deposit savings for fix period of 15 days to 1095 days. Fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of 15 days, thereby earning a higher rate of interest in return. Investor gets a lump sum (principal + interest) at the maturity of the deposit.
Bank’s fixed deposit scheme is one of the most common savings scheme for an average investor. Fixed deposit also gives a higher rate of interest than a savings bank account. Some of the facilities offered by bank on fixed deposit are overdraft (loan) facility on the amount deposited, premature withdrawal before maturity period (which involves a loss of interest) etc. Bank deposits are fairly safer because banks are subject to under control of the Reserve Bank of India.
What is a Cumulative Deposit Bank Account?
In Reinvestment deposits, interest is calculated quarterly or half yearly and added to the principal amount. i.e. Interest is compounded at regular intervals. In Cumulative deposit scheme, interest is payable at the time of maturity along with the principal. This scheme is suitable for persons who do not require periodical interest payment and this can be thought of as a money multiplier scheme. It is good choice for long term planning with guaranteed returns.
What is Recurring Deposit?
Recurring Deposit Scheme Commonly known as RDs is a unique term deposit, is meant for investors who want to deposit a fixed amount every month, in order to get a lump sum after one to five years. The scheme, a systematic way for long term savings, is one of the best investment option for the low income groups.
Why Recurring Deposit with Us?
The minimum investment in our bank Recurring Deposit Account is Rs 100/-. The upper limit for investment is Rs. 1000/-. Anyone can open this account in their personal name. Two or more individuals can open combine account. The bank will provide passbook to depositor and depositor have to take passbook when they come for deposit monthly instalment or close account. The bank doesn’t take any commission on monthly instalment deposit from depositor.
What is Saving Account?
A safe and easy way to save your money is with a bank savings account. A bank savings account allows you to deposit money (add money to your account) or withdraw money (remove money from your account) at any time. In return for keeping your money at the bank, the bank pays you money, also known as interest. Saving deposit is ideal to save part of earnings/park your funds/earn interest as also withdraw money when needed, in short its provide liquidity.
Interest will be earned on the money you have on deposit at the bank. Since you may deposit or withdraw money each day, the bank will calculate how much money you should receive in interest. You will also receive a periodic statement from the bank listing your deposits, withdrawals, interest, and account balances. Passbook is also given to the depositors.
What is Current Account?
Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. In a Current Account, a customer can deposit any amount for any number of times. He can also withdraw any amount as many times as customer wants, subject to availability of fund in the account.
Current Accounts is a non interest bearing account mainly use to serve needs of business, are meant neither for the purpose of earning interest nor for the purpose of Savings but only for convenience of the business.