The maturity period of the deposit shall be minimum five years commencing from the date of receipt.
The term deposit shall not be encashed before the expiry of five years from the date of receipt.
The facility of deduction from income under Section 80C of the Income Tax Act, 1961 shall be available only to the first named holder of the deposit.
Interest accrued on Fixed Deposit will be paid at quarterly rests at the end of March, June, September & December or at the maturity. If desired by the depositor, the Bank may pay interest on monthly basis at discount. Alternatively interest accrued on deposits will be ploughed back into the principal at quarterly rest and the deposit amount is repayable on maturity along with interest.
The deposit will cease earning interest on the expiry of the due date. If however, the deposit is renewed either wholly or partially, interest will be paid on the deposit amount or the portion renewed at the appropriate rate as given below :
If the overdue deposit is renewed within 14 days (both days inclusive) from the date of maturity, the rate of interest payable shall be the rate of interest prevailing on the date of maturity.
If the overdue deposit is renewed after 14 days from the date of maturity, the rate of interest payable shall be the rate of interest prevailing on the date of maturity or rate of interest prevailing on the date of renewal, whichever is lower .