What is the minimum tenure for which I can place a fixed deposit?

15 Days.

 

Do I get the facility of crediting my interest earned to another account when I place a fixed deposit?

Yes, you get to choose between placing a cumulative or non-cumulative deposit at the time of account opening. In a non-cumulative deposit, the interest earned will be paid on a periodical basis whereas in a cumulative deposit the interest earned will be ploughed back with the principal deposit amount.

 

Will my deposit get automatically renewed?

On maturity of your deposit, we will undertake the necessary action as per the maturity instructions specified by you in the account opening form. In case there are no maturity instructions provided in the form or we do not receive any other instructions from you prior to maturity, we will automatically renew your deposit for the same period at the prevailing rates of interest on maturity.

 

What interest rate will I get if I encash my fixed deposit prematurely?

The Bank, on request from a depositor, would allow withdrawal of a Fixed Deposit before completion of the period of the deposit agreed upon at the time of placement of the deposit subject to penalty on premature withdrawal of Fixed Deposit as may be applicable as per the table appended below-

Penal Rates
DATE OF PLACEMENT OF FIXED DEPOSIT(FD)	FD Value: < INR 1.5 Mn	FD Value: INR 1.5 Mn < INR 40 Mn	FD Value: INR 40 Mn and above
On or before 31 March 2011	1%	1%	1%
On or after 1st April 2011	1%	1.5%	2%

The interest paid will be lower by the Penal Rate (as may be applicable to the value and date of placement of the Fixed Deposit as defined in the above table) than the rate prevailing on the date of placement of the deposit for the period for which the deposit remained with the Bank or the contractual rate, whichever is lower. No interest will be paid on premature withdrawals of deposit which has remained with the Bank for less than the minimum period for which deposits were being accepted for the said currency and deposit type, as on the date of placement of deposit.