Term Deposits
Shri Mahila Sewa Sahakari Bank Ltd.
For Interest Rate Changes From 20/05/2023
Period | Int. Rate |
For Savings Deposit 3 % as Per Earlier | |
For Fixed Deposit & Recurring Deposit | For FD & RD Deposit |
90 days to 364 days | 4.5% |
365 days to 3years | 6.0% |
Above 3year to 5 years | 6.5% |
Above 5 years | 7.0% |
For senior citizen 0.50 % higher for the period above 1 year |
Important Notes
Premature closure of Term Deposit:
Fixed deposits, with a premature withdrawal facility, allow the depositor to close the FD before the date of maturity arrives. This comes as a relief in times of cash crunch. However, a certain amount may be required to be paid by the depositor as a penalty to the bank.
Suppose a customer has invested in an FD of Rs. 30000 at a rate of 7% for 2 years. Let us also assume that the interest rate for 1 year is 6.5%. She withdraws the FD after completing 1 year. In one year, he has earned interest @ 7%. But now, the bank shall recalculate the interest at revised FD rates, i.e. 6.5% - 1%= 5.5%. The new rate will be 5.5% and interest shall be paid at this rate instead of the previous 7%.
- Senior Citizen (i.e. having age of 60 years or more) will continue to get benefit of 0.50% higher interest rate on Deposits. However, Deposits placed by Senior Citizen under section 80 C of Income Tax Act.