BANKING PRODUCTS

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Kanica Jain F023
Abhinav Mishra F038
Saikiran F049
Chandan Sharma F052
Rajan Singh F056
Abhishek Tater F062
Savings Account
 Savings account - Basics

• Deposit account which pays interest, for personal use

• Interest rates
• Bank earns interest at 7% and gives the customer 4%. Bank
charges maintenance and transaction charges.
• Banks need more balance for lending purposes
Standing
Withdra Mobile
ATM instructio
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Debit Internet Remittan
Cheques
cards Banking ces
 Interest

• Uniform interest rates upto 1 lakh on savings bank

deposits
• Old methods – calculation of interest on minimum credit
balance between close of business on 10th and last day
of a month
• New methods – average daily balance
• Credit of interest is quarterly
Savings Account Interest Rate Offered

7.1% p.a = Daily balance above Rs.10 lakhs 6.1% p.a = Daily balance
RBL Bank
above Rs.1 lakh 5.1% p.a = Daily balance upto Rs.1 lakh

5% p.a = Saving Deposits Balance upto Rs. 1 lakh 6% p.a = Saving

Yes Bank Deposits Between Rs. 1 lakh and Rs. 1 crore 6.25% p.a = Saving
Deposits above Rs. 1 crore

5% p.a = Saving Deposits Balance upto Rs. 1 lakh 6% p.a = Saving

Kotak Mahindra Bank Deposits Between Rs. 1 lakh and Rs.1 crore 5.5% p.a = Saving
Deposits between Rs.1 crore and Rs.5 crore

Lakshmi Vilas Bank 5% p.a = Daily Balance Upto Rs.5 lakh 6% p.a = Above Rs.5 lakh

4% p.a = Daily balance upto Rs.1 lakh 5% p.a = Daily balance above
IndusInd Bank Rs.1 lakh but less than Rs.10 lakhs 6% p.a = Daily balance above Rs.10
lakhs 4% p.a = Non-resident NRO and NRE accounts

4.25% p.a = Daily balance upto Rs.1 lakh. Interest paid half yearly. 5%
Bandhan Bank
p.a = Daily balance above Rs.1 lakh. Interest paid half yearly.

3.50% p.a = Savings Account balance below Rs. 50 lakhs 4.00% p.a =
HDFC Bank
Saving Account balance of and above Rs. 50 lakhs

3.50% p.a = Savings Account balance below Rs. 50 lakhs 4.00% p.a =
Axis Bank
Saving Account balance of and above Rs. 50 lakhs
 Eligibility criteria

• Resident Individuals (sole or joint account)

• Hindu Undivided Families
• Foreign Nationals Residing in India*
• *Foreign Nationals should be residing in India for a
period greater than 180 days and must possess: A valid
passport, a valid visa, FRRO (Foreign Region Registration
Office) Certificate, and a Residential Permit
 Savings account types

Generic Premium No frills

Flagship Family, minor Linked

+ salary accounts
 SBI - Savings account details
Sr No Particulars Rate of Interest

Saving Deposits Balance upto Rs. 1

1 3.50% p.a
crore.

Saving Deposits Balance above Rs.

2 4.00% p.a
1 crore.

Minimum Balance
Savings Account Interest Rate Debit Car Issued
Required

Savings Plus Account 4.00% INR 25,000 Basic ATM-Debit Card

Yuva Savings Account 4.00% Not Required Multiple variants

Basic Savings Account 4.00% Not Required Basic ATM-Debit Card

Small Savings Account 4.00% Not Required ATM cum Debit Card

Savings Account For Photo ATM cum Debit

4.00% Not Required
Minors Card
• Minimum balance charges reintroduced after 5 years, in Apr 17
• In metros such as Chennai, Delhi, Mumbai, and Bengaluru, a charge of Rs.100 + service tax will be levied if the
balance goes below 75% of the minimum balance.
• If the account falls short of 50% of the MAB, the charge will be Rs.50 + service tax.
 HDFC savings account schemes Minimum Balance
Savings Account Interest Rate Debit Car Issued
Required
Titanium Royale Debit
SavingsMax Account 4.00% INR 25,000
Card
Rs. 10,000 (urban
branches)
Regular Savings Rs. 5,000 (semi-urban International Debit
4.00%
Account branches) Card
Rs.2,500 (Rural
Branches)
Rs. 10,000 (Urban
Women's Savings branches), EasyShop Woman’s
4.00%
Account Rs. 5,000 (Semi Urban Advantage Debit Card
branches)
Kids Advantage ATM/International Deb
4.00% INR 5,000
Account it Car
EasyShop International
Senior Citizens Account 4.00% INR 5,000
Debit Card
Family Savings Group EasyShop International
4.00% INR 40,000
Account Debit Card
Basic Savings Bank
4.00% Not Required RuPay Card
Deposit Account
Institutional Savings
4.00% Not Required Business Debit Card
Account
 ICICI Bank savings schemes
Minimum Balance
Savings Account Interest Rate Debit Card Issued
Required
Titanium Privilege Titanium Privilege
4.00% INR 1,25,000
Savings Account Debit Card
Gold Privilege Gold Privilege Debit
4.00% INR 50,000
Savings Account Card
Silver Savings Personalized Pocket
4.00% INR 25,000
Account Debit Card
INR 10,000(in Metro)
Regular Savings INR 5,000(in Semi Smart Shopper Silver
4.00%
Account Urban) INR 2,500(in Debit card
Rural Areas)
Pocket Savings Customized Pocket
4.00% Not Required
Account Debit Card
Personalized Pocket
Young Stars Account 4.00% INR 2,500
Debit Card
Advantage Women's MasterCard World
4.00% INR 10,000
Savings Account Debit Card
Senior Citizens Smart Shopper Silver
4.00% INR 5,000
Savings Account Debit card
Basic Savings
4.00% Not Required ICICI Bank Debit Card
Account
 HDFC Bank – SavingsMax

Features SavingsMa
Average monthly balance 25000
Service charges for non-maintenance
Rs 300 if greater than 20000, or min(Rs 600, 6% of
max shortfall in slab. Charged after the first month
of intimation
Accident hospitalization cover 100000
Accidental death insurance 1000000
 Regular savings account

Features Regular savings account

Average monthly balance 10000
AMC waived off for 1st yearfor 1st demat account
Safe deposit lockers Free
ATM withdrawal First 5 free per month

Free - 25 cheque leaves per financial year

Cheque book Additional chequebook of 25 leaves will be
charged @ Rs 75/- per chequebook.
 BSBDA: Basic savings bank deposit
small account

• Zero balance, free Rupay card

• 4 free withdrawals at any ATM per month
• Total balance should not exceed 50000
• Incomplete KYC
• Total withdrawals or transfers should not exceed
10000 a month
 Documents to open a savings account

• Identity proof
• Address proof
• Latest passport size photographs
• A copy of AOF PAN, passport, voter ID, Aadhar,
driving license, job card by MNREGA,
 KYC - Elements

• Name matching against lists of known parties (such as "politically exposed person" or PEP)
• Determination of the customer's risk in terms of propensity to commit money laundering, terrorist
finance, or identity theft
• Creation of an expectation of a customer's transactional behavior
• Monitoring of a customer's transactions against expected behavior and recorded profile as well as
that of the customer's peer
Customer Customer
Acceptance Identification
Policy Procedures

Risk Monitoring of
Management transactions
 Recurring deposit

•A Recurring Deposit or RD as it is commonly called is a unique term deposit offered by

banks.
•It is an investment tool which permits those with an ability to make regular deposits earn
decent returns on their investment.
•Recurring Deposits provides flexibility and ease of use to individuals. Account holders can
choose to invest a particular amount each month.
•Recurring Deposit Account, with the term typically ranging between 6 months and 10
years.
•The interest rate, once determined, does not change during the tenure, with the Reserve
Bank of India ensuring that strict guidelines are followed.
•On maturity, the individual will be paid a lumpsum amount which includes the regular,
periodic investments and the interest earned on them.
 Recurring deposit
FEATURES
The main features of Recurring Deposit account are as follows:-

Recurring Deposit schemes aim to inculcate a regular habit of saving among the public.
Minimum amount that can be deposited varies from bank to bank. It can be an amount as small
as Rs.10.
The minimum period of deposit starts at six months and the maximum period of deposit is ten
years.
The rate of interest is equal to that offered for a Fixed Deposit and is hence higher than any
other Savings scheme.
Premature and mid term withdrawals are not allowed. However, the bank may allow to close
the account before the maturity period, sometimes with a penalty for premature withdrawal.
RD offers the additional benefit of taking loan against the deposit, i.e., by using the deposit as a
collateral. About 80 to 90% of the deposit value can be given as loan to the account holder.
 Recurring deposit
RENEWALS , WITHDRAWALS & NOMINATION

During premature closure of a Recurring Deposit for reinvestment in a term deposit, interest
will be paid to the account holder without reducing interest rate by 1% as penalty.
This happens only if the deposit after reinvestment, remains with the bank for a period longer
than the remaining period of the original deposit.
If the account holder withdraws the deposited amount before its maturity, the rate of interest
that he/she will receive shall be the one applicable to the period for which the deposit has
remained with the bank, with a one per cent penalty for premature withdrawal.
Partial withdrawal of RD is not allowed by banks.
The Recurring Deposit also comes with a nomination facility. Whether held singly or jointly, there can be only
one Nominee for a deposit account.
 Recurring deposit
Loan against Recurring Deposit
A loan or an overdraft, can be availed against the recurring deposit. An individual can avail a loan
of up to 75 to 90% of the deposit amount, depending on the bank’s terms and conditions.

Income Tax on Recurring Deposit

Tax Deducted at Source (TDS) is applicable for recurring deposits on the interest earned. The tax
is paid according to the tax slab of the account holder. For instance, if the RD is for Rs 10,000,
then 10% is deducted as TDS by the bank.

Senior Citizens Recurring Deposit

RDs can be availed by senior citizens as well. The interest rates for senior citizens deposits are
higher than the regular account. For this, the minimum amount and tenure are fixed by the bank.
Most banks offer senior citizens an additional interest rate of 0.25% to 0.75%, as compared to
regular recurring deposits.
 Recurring Deposit
Features SBI ICICI
Monthly Deposit of Min Rs 100 and in multiples Deposit a minimum of Rs. 500 per month and
Min/ Max Deposit
of Rs 10 with no maximum thereafter, deposit in multiples of 100
Minimum period 12 months maximum 120 Minimum period of 6 months and thereafter in
Tenure
months multiples of 3 months. Max tenureis 10 years
As applicable to Bank's TDR / STDR for the period High rates of interest (identical to the fixed
Rate of Interest
of the RD deposit rates)
Loan / Overdraft up to 90% available against the
Loan Facility Loan against deposit available
balance in RD account

Monthly interest at the rate of Rs.12 per Rs.1000

For a/c of period 5 years and less: Rs. 1.50 per
Penalty charges for non- or part thereof or such other rate as may be
Rs. 100/- per month
Deposit of monthly specified by ICICI Bank for the period of delay.
For a/c of period above 5 years: Rs. 2.00 per Rs.
instalments Fraction of a month will be treated as full month
100/- per month
for the purpose of calculating such interest
 Variants of Recurring deposit

ICICI’s iWish Flexible Recurring Deposit

• A Flexi Recurring Deposit offers you convenience and complete flexibility, where lump sums can be
invested as and when available
• Deposit any amount at any point in the tenure, with no requirement to make deposits every month
• Multiple deposits can also be made in one month

SBI Holiday Saving Account

Under this scheme one can save monthly amounts in the form of a recurring deposit with the Bank in
order to avail a vacation package listed under Holiday Savings Account packages on Thomas Cook website
Recurring Deposit Interest Rates Comparison -
December 2017
 Current Account

•A Current Account is used by businesses, working professionals & TASC who require high
cash deposit limits, high cheque issuance & large number of transactions
•It offers 0% interest rate
•Minimum account balance over a 1-month or 1 quarter period determines the benefits
received by the account holder
•Right product for a customer is determined based on annual turnover & AQB maintenance
capability
 Current Account
Opening Process

•Manual Process, unlike savings account

•AOF to be filled, documents of proof of Existence of the business & Proof of Address to be
provided
•Persons party to the account needs to fill CIF, Proof of ID & POA to be given
•Bank personnel has to visit the entity office & ensure the existence of the establishment
 KYC
Proprietorship
Proof of Existence (Any one)
• Certificate of Registration
• Municipal License
• Sales & Income Tax returns, CST, VAT
• Utility bills in the name of the
proprietorship
• Import Export Certificate
• License issued by registering authorities
like ICAI, ICSI, etc.
• Any other registration or certificate by
State or Central Govt.
Proof of Address
• Utility bills like telephone, electricity
• Property tax paid receipt / bill raised in
the name of the firm
• Monthly statement from a Scheduled
commercial Bank not more than 3
months old with one customer initiated
transaction
• Professional tax receipts if the address
details matches with AOF
• TAN allotment letter in the name of the
firm along-with the SVR format
 KYC
Partnership
Certified True copy of Partnership
deed & any one of these
• Certificate of Registration
• Business License
• Municipal Registration Certificate
• Sales & Income Tax license, CST, VAT
certificate
• PAN Card in the name of the fir m
• Valid SEBI Registration Certificate
• Utility bills in the name of the
proprietorship
• Import Export Certificate
• License issued by registering authorities
like ICAI, ICSI, etc.
• Any other registration or certificate by
State or Central Govt.
Proof of Address (any one)
• Utility bills like telephone, electricity
• Property tax paid receipt / bill raised in
the name of the firm
• Monthly statement from a Scheduled
commercial Bank not more than 3
months old with one customer initiated
transaction
• Professional tax receipts if the address
details matches with AOF
• Registered and stamped Lease / Leave /
rent agreement in the name of the firm
• Property ownership deed in the name of
the firm duly stamped and registered.
 KYC
Company
Proof of Existence (all of these)
• Memorandum of Association
• Article of Association
• Certification of Incorporation
• PAN card in the name of the company
• Board Resolution duly signed
Proof of Address
• Utility bills like telephone, electricity
• Property tax paid receipt / bill raised in
the name of the company
• Monthly statement from a Scheduled
commercial Bank not more than 3
months old with one customer initiated
transaction
• Professional tax receipts if the address
details matches with AOF
• Registered and stamped Lease / Leave /
rent agreement in the name of the firm
• Property ownership deed in the name of
the firm duly stamped and registered.
• Any proof of existence with address can
be considered as address proof
 KYC
LLP
Proof of Existence (all of these)
• Certification of Incorporation from ROC
• PAN card in the name of the company
• Limited Liability partnership (LLP)
agreement
• Shareholding pattern / List of beneficial
owners holding more than 25% in the
company. (Directly / Indirectly) (on
letterhead)
Proof of Address
• Utility bills like telephone, electricity
• Property tax paid receipt / bill raised in
the name of the company
• Monthly statement from a Scheduled
commercial Bank not more than 3
months old with one customer initiated
transaction
• Professional tax receipts if the address
details matches with AOF
• Registered and stamped Lease / Leave /
rent agreement in the name of the firm
• Property ownership deed in the name of
the firm duly stamped and registered.
• Any proof of existence with address can
be considered as address proof
 KYC
Trust
Proof of Existence (all of these)
• Trust Deed signed by authorized Trustees
• Certified True Copy of Certificate of
Registration of trust. If a separate
registration certificate is not available,
then the Trust Deed bearing the stamp of
the Registrar shall be considered as
registered document
• PAN Card in the name of trust
• Certified copy of the Resolution to open
the account signed by the
chairperson/secretary
• Trust Declaration for opening the bank
account
Proof of Address (any one)
• Utility bills like telephone, electricity
• Property tax paid receipt / bill raised in
the name of the trust
• Letter from charity commissioner /
Provident Fund commissioner –
recognizing the Trust
• Monthly statement from a Scheduled
commercial Bank not more than 3
months old with one customer initiated
transaction
• 12A or 80G certificate provided it
contains the address.
• Registered and stamped Lease / Leave /
rent agreement in the name of the trust
• Property ownership deed in the name of
the trust duly stamped and registered.
• Any proof of existence with address can
be considered as address proof
 KYC
Society, Association, Clubs
Proof of Existence (all of these)
• Trust Deed signed by authorized Trustees
• Certified copy of certificate of
registration of the society
• Certified copy of Rules and By-Laws of
the institution signed by the Secretary OR
Society's memorandum of association
and rules and regulations
• PAN Card in the name of SAC
• Certified copy of the Resolution to open
the account signed by the
chairperson/secretary
• Certified copy of the committee
resolution to open the account signed by
the chairperson/secretary
• List of Managing Committee members
Proof of Address (any one)
• Utility bills like telephone, electricity
• Property tax paid receipt / bill raised in
the name of the trust
• Letter from charity commissioner /
Provident Fund commissioner –
recognizing the Trust
• Monthly statement from a Scheduled
commercial Bank not more than 3
months old with one customer initiated
transaction
• 12A or 80G certificate provided it
contains the address.
• Registered and stamped Lease / Leave /
rent agreement in the name of the trust
• Property ownership deed in the name of
the SAC duly stamped and registered.
• Any proof of existence with address can
be considered as address proof
 Current Account
Product Catalogue- HDFC

•Supreme, Ultima current account – AQB INR 20 lakhs. Expansive product offerings
•Premium, Regular current account – AQB INR 1 lakh. Limited benefits
•Trader Current account – keeps in mind the dynamic nature of transaction of a trader
•Professional Current Account – CA, Lawyer etc.
•Flexi Current Account – Sweep Out feature, excess balance is converted into FD
•Institutional Current Account – TASC
•Start Up Current Account – Introduces banking to new businesses
•RFC Current account – Foreign currency with exchange at will benefit
•Exporter Current account – Provides favorable exchange rates
Fixed Deposits
 Fixed Deposit Accounts

• Introduction and Definition

• Who can Open
• Interest
• Tax Deduction and Contains
• Early Withdrawal and Renewal
• Maturity
• Renewal of Overdue Deposits
• Advance on Fixed Deposits
• Joint Holding and loss of receipt
• Repayment and Recurring Deposit
• Deceased Depositor
• Deposit of Deceased Depositor
 Introduction

• Fixed deposits are deposits placed with the bank for

fixed period, repayable on the expiry of that period
• Rate of interest offered to these are higher than on
savings accounts
• The minimum period of such deposit may be placed
is 7 days, whereas the maximum period is 120
months
 Who Can Open An FD

Fixed deposits are of the following types

• Individuals
• -Sole Proprietorships
• -Hindu Undivided Families (HUF)
• -Partnerships
• -Trusts
• -Associations / Societies and Clubs
• -Limited Companies
 Interest

• Banks are free to determine the rate of interest.

• Banks may offer deposit on a floating rate
• Interest should be paid at quarterly or longer rests
• Interest is calculated on the daily balance
• Interest on deposit of less than 3 months or where the quarter is incomplete, interest should be paid on
the number of days reckoning the year at 365 days
• Interest is credited only if it is one rupee or more
• Scheduled bank with deposits of less than Rs.25 Crores are permitted to give an additional ½% of interest
• All transactions including the payment of interest should be rounded off to the nearest rupee
 Tax Deduction

• Where the interest paid per individual in excess of

Rs.10,000/-, bank has to deduct tax at source if the depositor
has not submitted Form 15H or 15G or certificate u/s 197(1)
of the Income tax Act,1961
• The main contents of Fixed Deposit Receipt are
o Date of issue
o Due date
o Amount
o Rate of interest
o Period of deposit
o Amount of maturity
 Early Withdrawal and Renewal

• Bank should permit early withdrawal

The R.B.I. states that penal interest should not be
charged if the deposit is reinvested in a fresh deposit
immediately
Banks may at their discretion, disallow premature
withdrawal of large deposits held by entities other than
individuals and HUF
• In case of renewal, the deposits are renewed on maturity
on the request of the depositor
 Maturity

• On maturity, depositor must instruct bank to renew if he

wants so
Bank on their own cannot do so
• the depositor neither renews nor claims the deposit amount,
it is designated as an,” overdue deposit” in the books of bank
• If the depositor does not make a demand, bank cannot
close the deposit and repay the depositor.
If the depositor does not want to renew it, he can ask for it to be
paid
 Other Details

• Renewal of Overdue Deposits

– decided by banks laying down a transparent policy
– notified to customer at the time of opening account
– If the application for renewal is made after 14 days the rate of interest should be the rate
prevailing on the date of renewal of deposit. Banks are free to determine the rate of
interest between the date of maturity and the date of renewal

• Advance on Fixed Deposits

– On the advances given on the security of fixed deposits to third parties upto Rs.2Lakhs
banks can charge interest without reference to its BPLR
– If it exceeds Rs.2Lakhs,it should be at the rates prescribed by the R.B.I
 PROS OF FIXED DEPOSIT

• High rates of interest - As is already well-known fixed deposit accounts and

considerably good amount of interest; more than the interest earned on any other
forms of savings accounts
• Safety of your future – if you choose the right bank or company, you can consider
your future quite secure. You will get back the money you put away along with a fat
sum of interest
• Lower risk as compared to risk involved in investing in stocks. When you invest in
stocks, there is a chance of you losing the initial value of the money you invested.
Fixed deposits involve a very low risk of losing your investment
 CONS OF FIXED DEPOSITS

• Protection against inflation - The fixed interest rates which are given on fixed deposits do not
give you any protection against inflation
The cost of living is constantly rising
Wiser option may be to invest in shares of a good company which goes in rhythm with inflation
In the long run, the value of the return on your investment in a fixed deposit account might be
much lower
• You cannot withdraw funds during the tenure -
However, will only be a drawback if there happens to be any emergency that comes up during the
fixed period; an emergency which would require you to break the deposit
• The risk factor - In the case of a financial crisis, fixed depositors will be one of the last to be paid
off
companies which offer a very high rate of interest are usually ones which have a higher risk
 Current FD scenario in Indian Banks

• Highlights:
- Most banks offer FDs for tenure of 7 Days to 10 Years.
- The Ratnakar Bank & IDBI Bank do offer fixed deposits up to 20 years too.
- For very short Term Deposits the interest rate is similar to that of Savings Account and so you
should not worry about FD. Also Interest up to Rs 10,000 in Saving Account is Tax free.
- Most banks compound interest quarterly
- Banks offer Loan/Overdraft against the amount available in Fixed Deposit. The interest is
generally 0.5% to 1% more than that offered to FD.
- TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more
than Rs 10,000 in financial year per bank
- There might be penalty for pre-mature withdrawal of Fixed Deposits
 Rates offered by Indian Banks

Interest Rate for FD of Less than 1 Year:

The highest interest rate is offered by City Union Bank (181 days to 364 days), IDFC Bank (181 – 365 days)
& Repco Bank (90 days – 364 days) at 7.00%
Interest Rate for Fixed Deposit of 1 – 2 Years:
The highest interest rate is offered by IDFC Bank (366 days) at 7.50%
Interest Rate for Fixed Deposit of 2 – 5 Years:
The highest interest rate is offered by Deutsche Bank (5 Years) at 7.75%
Interest Rate for Fixed Deposit of 5 – 10 Years
The highest interest rate is offered by IDFC Bank (3 years 1 days – 10 years) at 7.20%
The
Bank Ratnakar Bank and IDBI bank offers fixed deposit of up to 20 years Interest Rate
Description

Ratnakar Bank 36 months to less than 240 months 7.10%

IDBI Bank 5 Years to 20 Years 6.00%

Thank You