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7.1% p.a = Daily balance above Rs.10 lakhs 6.1% p.a = Daily balance
RBL Bank
above Rs.1 lakh 5.1% p.a = Daily balance upto Rs.1 lakh
Lakshmi Vilas Bank 5% p.a = Daily Balance Upto Rs.5 lakh 6% p.a = Above Rs.5 lakh
4% p.a = Daily balance upto Rs.1 lakh 5% p.a = Daily balance above
IndusInd Bank Rs.1 lakh but less than Rs.10 lakhs 6% p.a = Daily balance above Rs.10
lakhs 4% p.a = Non-resident NRO and NRE accounts
4.25% p.a = Daily balance upto Rs.1 lakh. Interest paid half yearly. 5%
Bandhan Bank
p.a = Daily balance above Rs.1 lakh. Interest paid half yearly.
3.50% p.a = Savings Account balance below Rs. 50 lakhs 4.00% p.a =
HDFC Bank
Saving Account balance of and above Rs. 50 lakhs
3.50% p.a = Savings Account balance below Rs. 50 lakhs 4.00% p.a =
Axis Bank
Saving Account balance of and above Rs. 50 lakhs
Eligibility criteria
+ salary accounts
SBI - Savings account details
Sr No Particulars Rate of Interest
Minimum Balance
Savings Account Interest Rate Debit Car Issued
Required
Small Savings Account 4.00% Not Required ATM cum Debit Card
Features SavingsMa
Average monthly balance 25000
Service charges for non-maintenance
Rs 300 if greater than 20000, or min(Rs 600, 6% of
max shortfall in slab. Charged after the first month
of intimation
Accident hospitalization cover 100000
Accidental death insurance 1000000
Regular savings account
• Identity proof
• Address proof
• Latest passport size photographs
• A copy of AOF PAN, passport, voter ID, Aadhar,
driving license, job card by MNREGA,
KYC - Elements
• Name matching against lists of known parties (such as "politically exposed person" or PEP)
• Determination of the customer's risk in terms of propensity to commit money laundering, terrorist
finance, or identity theft
• Creation of an expectation of a customer's transactional behavior
• Monitoring of a customer's transactions against expected behavior and recorded profile as well as
that of the customer's peer
Customer Customer
Acceptance Identification
Policy Procedures
Risk Monitoring of
Management transactions
Recurring deposit
Recurring Deposit schemes aim to inculcate a regular habit of saving among the public.
Minimum amount that can be deposited varies from bank to bank. It can be an amount as small
as Rs.10.
The minimum period of deposit starts at six months and the maximum period of deposit is ten
years.
The rate of interest is equal to that offered for a Fixed Deposit and is hence higher than any
other Savings scheme.
Premature and mid term withdrawals are not allowed. However, the bank may allow to close
the account before the maturity period, sometimes with a penalty for premature withdrawal.
RD offers the additional benefit of taking loan against the deposit, i.e., by using the deposit as a
collateral. About 80 to 90% of the deposit value can be given as loan to the account holder.
Recurring deposit
RENEWALS , WITHDRAWALS & NOMINATION
During premature closure of a Recurring Deposit for reinvestment in a term deposit, interest
will be paid to the account holder without reducing interest rate by 1% as penalty.
This happens only if the deposit after reinvestment, remains with the bank for a period longer
than the remaining period of the original deposit.
If the account holder withdraws the deposited amount before its maturity, the rate of interest
that he/she will receive shall be the one applicable to the period for which the deposit has
remained with the bank, with a one per cent penalty for premature withdrawal.
Partial withdrawal of RD is not allowed by banks.
The Recurring Deposit also comes with a nomination facility. Whether held singly or jointly, there can be only
one Nominee for a deposit account.
Recurring deposit
Loan against Recurring Deposit
A loan or an overdraft, can be availed against the recurring deposit. An individual can avail a loan
of up to 75 to 90% of the deposit amount, depending on the bank’s terms and conditions.
•A Current Account is used by businesses, working professionals & TASC who require high
cash deposit limits, high cheque issuance & large number of transactions
•It offers 0% interest rate
•Minimum account balance over a 1-month or 1 quarter period determines the benefits
received by the account holder
•Right product for a customer is determined based on annual turnover & AQB maintenance
capability
Current Account
Opening Process
•Supreme, Ultima current account – AQB INR 20 lakhs. Expansive product offerings
•Premium, Regular current account – AQB INR 1 lakh. Limited benefits
•Trader Current account – keeps in mind the dynamic nature of transaction of a trader
•Professional Current Account – CA, Lawyer etc.
•Flexi Current Account – Sweep Out feature, excess balance is converted into FD
•Institutional Current Account – TASC
•Start Up Current Account – Introduces banking to new businesses
•RFC Current account – Foreign currency with exchange at will benefit
•Exporter Current account – Provides favorable exchange rates
Fixed Deposits
Fixed Deposit Accounts
• Protection against inflation - The fixed interest rates which are given on fixed deposits do not
give you any protection against inflation
The cost of living is constantly rising
Wiser option may be to invest in shares of a good company which goes in rhythm with inflation
In the long run, the value of the return on your investment in a fixed deposit account might be
much lower
• You cannot withdraw funds during the tenure -
However, will only be a drawback if there happens to be any emergency that comes up during the
fixed period; an emergency which would require you to break the deposit
• The risk factor - In the case of a financial crisis, fixed depositors will be one of the last to be paid
off
companies which offer a very high rate of interest are usually ones which have a higher risk
Current FD scenario in Indian Banks
• Highlights:
- Most banks offer FDs for tenure of 7 Days to 10 Years.
- The Ratnakar Bank & IDBI Bank do offer fixed deposits up to 20 years too.
- For very short Term Deposits the interest rate is similar to that of Savings Account and so you
should not worry about FD. Also Interest up to Rs 10,000 in Saving Account is Tax free.
- Most banks compound interest quarterly
- Banks offer Loan/Overdraft against the amount available in Fixed Deposit. The interest is
generally 0.5% to 1% more than that offered to FD.
- TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more
than Rs 10,000 in financial year per bank
- There might be penalty for pre-mature withdrawal of Fixed Deposits
Rates offered by Indian Banks