PRODUCT NATURE

A term deposit scheme under the Fixed Deposit & Kamadhenu Deposit streams

TARGET GROUP

Salaried class, businessmen, professionals who come under ambit of tax payers

ELIGIBILITY

Individual Account – can be in the name of the individual for himself or in the capacity of the Karta of a Hindu undivided family (HUF).

Joint Account – can be opened by only two adults jointly or an adult and a minor, and payable to either of the holders or to the survivor.

(In the case of joint account, the deduction from income under Section 80C of the Income Tax Act, 1961 shall be available only to the first holder of the deposit)

INVESTMENT

• Minimum - Rs.100/-(In multiples of Rs.100/- thereafter)
• Maximum - Rs.1, 00,000/- per person

PERIODICITY OF DEPOSIT

5 years

INTEREST RATE

9.00% w.e.f. 01.08.2011

PERIODICITY OF INTEREST PAYMENT

Monthly (discounted)/Quarterly on Fixed Deposits.
Compounded quarterly as applicable to KDR.

TDS

Applicable on interest payable

NOMINATION FACILITY

Available, however, no nomination shall be made in respect of a deposit under the scheme applied for and held by or on behalf of a minor

LOAN FACILITY

Cannot be pledged as security/collateral security for loans/advances

PRE-MATURE CLOSURE

Cannot be closed prematurely (as per the guidelines of GOI)

SPECIAL FEATURES

• Deduction from income upto Rs.1 lakh under Sec.80C of The I T Act, 1961;
• Higher rate of interest

APPLICATION & DOCUMENTS

NF 108 – Application Form
Form 60 or 61 (if customer does not have PAN Card)
Photograph of depositor/s (2 copies)
Proof of address as per KYC Norms
Any other related documents as applicable to proprietor ship concern, Partnership Firm, Company, HUF etc