Features and Benefits
- Deposits will be accepted both under cumulative and non-cumulative options.
- Deposits will be accepted in the name of Individual/s and also in the name of Kartha of HUF.
- The scheme is for a fixed period of 5 years.
- Nomination facility is available.
Terms and Conditions
- The minimum amount that can be invested under this scheme is Rs. 100/- and multiples thereof. The maximum amount is restricted Rs. 1.50 Lakh.
- Premature Closure is not allowed as the deposit is under lock-in period for 5 years.
- In case of Joint account, the deduction under Section 80 C shall be available only to the first holder of the deposit.
- Deposit Loans are not allowed.
- TDS will be deducted at applicable rates.
- Depositors have to indicate their preference in the application form as to whether the tax shield deposit has to be placed as a cumulative deposit (or) as a fixed deposit with interest payable at monthly / quarterly intervals.
Kindly contact the nearest branch for deposits above Rs. 1 crore.
|Time Bucket||Revised interest |
(Less than 1 crore) (w.e.f. 07.01.2019)
|KVB - Tax Shield||7%|
Penal Interest on pre-closure of deposits:
- Up to Rs. 1 crore of deposit – Penalty of 1% from applicable ROI.
- Above Rs. 1 crore of deposit – Pre-closure Penalty norms applicable.
- Interest will be calculated at the rate applicable for the period the deposit has actually remained with the bank. The rates are subject to change without notice.
To check Interest rate: Click here