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A Term deposit with features of a Recurring Deposit (RD) in Investment phase and Annuity Fixed Deposit in Payout phase.
It can be opened by resident individuals, singly or jointly.
The minimum value of instalment is Rs 2,000 per month and thereafter in multiples of Rs 100.
- This deposit can be opened for a period/tenure which will have Investment phase and Payout phase (also called Benefit phase).
- The Investment phase will be for a minimum period of 24 months and in multiples of 3 months.
- The Payout (repayment) phase will be for a minimum period of 24 months and in multiples of 12 months.
- Deposit tenure is the combination of Investment phase and Payout phase. Once specified by the depositor, it cannot be changed.
During the Investment phase, customer has to make payment of regular RD instalments to build a corpus.
- On completion of the Investment deposit phase, the entire maturity proceeds (RD instalments + interest), as applicable, will be invested in the Annuity Fixed Deposit for the Payout period.
- The Payout under the product will commence monthly.
Here is an example that will explain how it works:
| Investment Phase | Payout Phase | |||||
|---|---|---|---|---|---|---|
| Installment Amount | Tenure | Rate of Interest | Total Corpus | Lump-Sum Payment | Tenure | Monthly Payout |
| 5000 | 24 months | 7.25% | 129,437 | 0 | 24 months | 5,810 |
| 10000 | 24 months | 7.25% | 258,874 | 0 | 24 months | 11,620 |
Disclaimer: The numbers and data used for the above calculation are for illustrative purposes only, original numbers may vary.
- The Deposit will earn prevailing fixed interest rates for the entire deposit period, i.e. same rate of interest in Investment phase and Payout phase. In case the rate of interest increases or decreases, the deposit will continue to earn the contracted rate of interest on both RD during Investment phase and Fixed Deposit (FD) during the Payout phase.
- The rate of interest will be applicable as per the total tenure, including both Investment (RD) and Payout (FD) phase. e.g. If the total tenure of the deposit is 8 years bifurcated into 4 years Investment phase and 4 years Payout phase, the rate of interest applicable for the Recurring Deposit in Investment phase as well as FD in Payout phase will be the same as applicable for 8 years at the time of RD opening as the customer has entered in contract for 8 years.
- Interest earned on the Deposit during tenure will be subject to Tax Deducted at Source (TDS).
In case the instalment for the month is not paid on or before the last working day, delayed instalment penalty of Rs 12 per Rs 1,000 shall be applicable as per the prevailing policy.
- Partial withdrawal will not be permitted in both the phases.
- Premature closure will be permitted during both Investment phase as well as Payout phase by deducting the applicable penalty.
In case the instalment for the month is not paid on or before the last working day, delayed instalment penalty of Rs 12 per Rs 1,000 shall be applicable as per the prevailing policy.
