DEPOSIT SCHEMES
DIFFERENT TYPES OF ACCOUNTS
Saving Accounts
Deposit Accounts
Social Security Schemes
Term Deposit Account
TERM DEPOSITS – GENERAL
Term deposit is a deposit received by the bank for a specific fixed period of time which is withdrawable only after the expiry of the said fixed period and shall also include recurring deposits, fixed deposits, long term deposits or other deposits of similar nature.
Eligible Categories to open a term deposit account are:
Individual
Joint Account of Individuals
Minors
illiterate/blind persons
Sole Proprietor
Partnership firm
Club, Societies, Association
Limited Companies/Trust
School/Colleges
H.U.F Executor/Administrator
Government or Semi Government departments
RATE OF INTEREST : Rate of interest of term deposits to be paid by cooperative bank has been deregulated by Reserve bank of India from October 17,1994. Now the management of the cooperative bank decides the rate of interest payable on term deposits.
The interest on term deposits is payable at quarterly intervals. However, the interest on Fixed Deposits can be paid monthly, at discounted factor. The interest on term deposit is to be compounded quarterly. So, where the compounding of interest is to be done quarterly, such deposits i.e. Long Term Deposits, Recurring Deposits etc, shall be accepted for period which are multiple of three months only. However this restriction does not apply to fixed deposits where interest is either paid on monthly, quarterly or half yearly basis.
PERIOD OF TERM DEPOSIT: Term deposit can normally be accepted for a minimum period as directed by the head office from time to time and a maximum period of 120 months. Such period is, however, subject to change from time to time as per the directive or RBI or the management of bank.