Term Deposit accounts which are also called term deposit also include the deposits received by the bank for a fixed period and a fixed rate of interest specified in advance. Such deposits are repayable either on Monthly, Quarterly, or on the expiry of a specified period as indicated by the depositor. The periodicity of such deposits generally starts from 7 days and extends up to 120 months. All types of customers including Minor can open Term Deposit Account if otherwise categorically restricted. Senior Citizen gets special privileges on Interest rates.
Type of Terms Deposit are:-
Fixed Deposit:- Interest is calculated on a Simple Basis. Payable either on a Maturity or quarterly basis.
Monthly Income Scheme:- Popularly known as MIS. Interest is served on a Monthly basis as per prevailing Industry practice.
Cash Certificate:- Interest is paid on Maturity, calculated on a compound basis.
Term Deposit with facility U/s 80C as per Income Tax Act. 1961. Tenure minimum 5 years Lock-in-period and No pre-maturity and Loan against deposit facility.
Recurring Deposit Account:- This is an account intended to develop habits of savings on a regular basis by the depositor with limited means. In this account type, the depositor commits to deposit a fixed amount for a fixed period of time (for example Rs 100 every month for 12 months) and gets a lump-sum amount at the end of such period. The depositor does not get any interest in the intervening period. The terms i.e. fixed amount, interval, and fixed time period that is decided at the time of opening the deposit can not be altered.
NND(Nitya Nidhi Deposit Account):- It is a daily deposit a/c for 12 Months tenure