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FIXED DEPOSIT
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1)

Fixed deposit A Fixed Deposit (FD) is a financial

instrument provided by Indian banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. The interest rate varies between 4 and 11 percent. The tenure of an FD can vary from 10, 15 or 45 days to 1.5 years and can be as high

2)

3)

WHY FIXED DEPOSIT?

Encourages habit of saving Enables to earn high interest rate Loan facility Tax free income upto 10000

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Features of FD

Minimum deposit 10000 period of tenure 7 days (For senior citizens 15 days) period of tenure 10 years not allowed.

Minimum

Maximum

Withdrawals Encashment

can only be made at the branch where the deposit was booked closure can be done penalty of 1% from the interest payable as on that date. be renewed. lakh for 5yrs eligible for tax deduction.

Premature

Can 1

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Deposit schemes

Short Term Deposits Investment Certificate

Monthly

(MIC)
Quarterly

Investment Certificate

(QIC)
Re

Investment Certificate (RIC)

DOCUMENTATION

Identity proof

(PAN card, Passport, Bank passbook with photo, Election card etc.,)
Address

proof

(Ration card, Passport, Electricity/Phone/Mobile Bill etc.,)

Account

Opening Form (AOF)

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SHORT TERM DEPOSIT

Accepted for short period and interest is paid on the deposit on simple basis.
Minimum period 7 days Maximum period 6 months

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MONTHLY INTEREST CERTIFICATE (MIC)

Fixed monthly income period 12 months period 10 years

Minimum Maximum Monthly

interest can be credited to SB, CA or RD account of depositor according to his/her instructions

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QUARTERLY INTEREST CERTIFICATE (QIC)

Provides fixed quarterly income Quarterly interest credited to SB, CA or RD account of the depositor. Minimum period 12 months Maximum period 10 years Minimum amount 10,000 and in multiples of 1000 thereafter.

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Re-investment certificate (RIC)

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Cumulative deposit scheme interest compounded on quarterly basis

Paid

along with principal on maturity period 6 months period 10 years

Minimum Maximum

TAX SAVER FD
Minimum amount - 100 Maximum amount - 1,00,000 2 types RIC & QIC Minimum lock in period 5 years fixed tenure No premature withdrawal Deposit under this scheme cannot be pledged to

secure a loan
Tax deducted at source
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Interest rates

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 Rollover only principal Only the principal is

AUTOMATIC ROLLOVER

rolled over, whereas the interest is paid out or credited to customers account.

Rollover principal & interest accrued in

Reinvestment deposit Both principal & interest rolled over.

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Changes that can be made

On or before maturity date, these changes can be made: Change in tenure in maturity/payment instructions in principal (only reduced amount)

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Change Change Switch

between rollovers

Creating a FD linked to SB - Liquidity of SB & High earnings of FD Maximum returns every Monday when the balance in the linked account crosses a threshold amount specified by the customer, in multiples of 5000 the excess will be transferred to FD account (6 months to 5 yrs) Maximum Liquidity FD amount can be accessed through SB account. Remaining 6/23/12 amount of money in FD will earn

ENCASH 24 (Flexi Deposits)

Thank you

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