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Customer Corner

 

TERM DEPOSIT ACCOUNT RULES

Mode of calculation of Interest on Short Deposits and Fixed Deposits for periods less than 12 months : Shot Deposits On deposits repayable within six months (Short Deposits) Interst should be paid for the actual ___ number of days on the basis of 365 days, in a year. Fixed Deposits On Deposits repayable after six (Fixed Deposits) where the terminal month is complete or incomplete Interested will be calculated for the completed months and where the terminal month is incomplete-the actual number of days on the basis of 365 days in a year. Renewal/withdrawal of term deposits receipts from other than parent CBS branch Depositors cannot get their Term Deposit Receipts renewed/paid from any other branch, other than the Branch from where it was issued. The Depositors also cannot get the TDS Certificate, Interest certificate, print-out from any branch, other than the parent branch.

Recurring Deposits

Recurring Deposits accounts can be opened where the deposits will be in equal monthly installments. Minimum monthly installment is Rs.500/- in respect of Metro and Urban branches and Rs.100/- in case of Semi Urban and Rural branches. Penalty will be charged on the installments in arrears, on the rates applicable from time to time. Standing instructions of the depositors to transfer the amount of monthly installments from their current/savings account to their Recurring Deposit account may be accepted free of charge. When all the installments stipulated by the depositor are paid, the accumulated amount will be repayable together with accrued interest 30 day after the last installment has become payable and has been paid, or the date of maturity whichever date may have fallen later.

Automatic Renewal

The customers should give their renewal instructions at least two days before maturity date, otherwise the receipts gets automatically rolled for a similar period at rates prevalent on the date of such auto renewal. The Bank shall not send any intimation about the impending maturity of the term deposit.

Tax deduction

Income Tax, as per prevalent rates and rules shall be deducted at the time of every application of interest and shall be deducted from the SB/CD account or from the proceeds of the Term deposit. Interest Certificate/TDS certificate shall be issued at the end of the year. The customers may submit form 15G/H, immediately on issue of the fixed deposit receipt as well at the beginning of the each new financial year, if they desire that the TDS should not be deducted by the Bank. Furnishing of PAN is mandatory on each 15G/H

Payment of term Deposits

Payment of the term deposits shall be made to depositor only by means of an account payee cheque/DD or way of credit to his account in case the amount of all the deposits (at the branch) together with interest, held by a person in his own name or jointly with any other person is Rs.20,000/- or more on the date of payment of any or more of the deposits. The same rule is applicable where the repayment of interest alone is Rs.20,000/- or more.

Payment before maturity / Restrictions

The Bank, on request from the depositor, may allow withdrawal of a term deposit before completion of the period of the deposit agreed upon at the time of making the deposit. While prematurely withdrawing/ closing a deposit, “the applicable rate of interest on the date of acceptance of deposit for the actual period which the deposit has remained with the bank or contracted rate of interest whichever is LOWER shall be paid”. In addition the Bank can levy penalty, as applicable from time to time. The change in this regard shall be notified through Bank’s website i.e. www.bankofindia.co.in. Further, the Bank may disallow premature withdrawal of large deposits held by entities other than individuals and HUFs. For payment before maturity, all the joint account holders have to sign. In case of term deposits with “Either or Survivor” or “Former or Survivor” mandate, banks are permitted to allow premature withdrawal of the deposit by the surviving joint depositor on the death of the other, only if there is a joint mandate from the joint depositors to this effect. The joint deposit holders may submit the mandate either at the time of placing fixed deposit or anytime subsequently during the term/tenure of the deposit

Advance against Term deposits

The depositors may seek advance against term deposits. The rate of interest on the advance and the margin shall be at the discretion of the Bank. In such cases, all the joint holders have to sign the relevant documents and discharge the term deposits.

General

The Bank reserves to itself the right to delete, add to or alter these Rules at any time without giving a separate Notice to every account-holder. An announcement of any change in the rules put up on the Branch Notice Board or published in the press or put on Bank’s website shall be deemed to be sufficient Notice to all account-holders.