Term Deposits

A term deposit is a cash investment held at a financial institution. Your money is invested for an agreed rate of interest over a fixed amount of time, or term.

1. Fixed Deposit Account(FD)

   Fixed Deposit Account can be opened by any person. This account will be opened for a fixed amount of deposit for a fixed tenure at the prescribed rate of interest. In this deposit, depositor can withdraw Interest amount Monthly/Quarterly/Half Yearly or Yearly as per the requirement of the depositor. Minimum period of deposit is 15 days

   The account holder should have to maintain a minimum Balance of Rs.1,000.00.

   Interest: The interest on Fixed Deposit will be paid at rates applicable for the period of deposit as prescribed under the Reserve Bank of India’s rules/directives/guidelines from time to time and fixed by the Bank.
   Interest is paid at quarterly rests. If required, monthly interest may be paid at discounted rates.

   Period of Deposit: Under the scheme, customer can choose the period of deposit to suit his needs, from a minimum of 15 days to a maximum of 10 years.

   Repayment on Maturity: The deposit is repayable on the maturity date as indicated on the deposit receipt.

   Premature Closure: The depositor can close the account prematurely. In such case interest will be paid at rate applicable for the period deposit remained with the bank.

   Loan against deposits: Depositor can avail a loan upto 80% of the deposit amount.

   Nomination facility: Nomination Facility is available. Necessary application is to be obtained from the depositor and entries are to be made accordingly in the Banks records.

2. Pigmy Deposit Scheme:

   Itis a monetary deposit scheme. Money can be deposited into an account on daily basis. The amount may be as small as Rupees five. It can be called a recurring deposit scheme, as the money is deposited almost daily. The unique characteristic of this scheme is that a bank agent collects the money daily, from the account holder's doorstep.

   The scheme was introduced to help daily wage earners, small traders and farmers to inculcate a saving habits and also as a means to fund their bigger capital requirements, such as a wedding, home buying, vehicle purchase etc. The scheme is now offered by several other banks in India.

3. Recurring Deposits Scheme:
   

   Recurring Deposits provides flexibility and ease of use to individuals. Account holders can choose to invest a particular amount each month, ensuring that they have sufficient income for an emergency, with the RD earning decent interest on the amount. Given the fact that FDs are rigid and are not ideal for short terms, a Recurring Deposit is an ideal investment cum savings option. 

4. LTCC (Long Term Cash Certificate)
   

   Cash certificates are a type of deposit that is purchased for a certain amount. The account holder purchases the cash certificate for a certain amount, but needs to make payments toward this amount only as long as the term of the certificate lasts. Typically, the account holder builds up to the full amount of the certificate, earning interest as the money is transferred to the account, like a reverse loan. Account holders make payments once every quarter. Cash certificates can last years, and holders can even borrow money against them if necessary.

   These deposits are not directly related to stock market or bond speculation, but instead give investors a way to earn interest on money in a safer setting.