Flexi Fixed Deposit products offer liquidity in the shape of Savings / Current deposit funds as well as higher returns as are available on fixed deposit funds. Moreover, there is also an element of flexibility as the depositor can meet funds requirement without loosing the interest, since transfer of funds to Savings /Current account is made available as an in-built arrangement whenever required by the depositor. In nutshell, the scheme enables a depositor to get returns on his/her funds as a fixed deposit but at the same time retaining the character of liquidity which is available in Savings Banks/Current Account.
The Scheme is made available at BOTH THE Branches. Customer will have to fulfil following conditions for its availment:
In case of new accounts, the initial deposit, as per the respective category under which the account is proposed to be opened, shall be the pre-requisite. In case of non-maintenance of minimum Average Quarterly Balance (as per Annexure I), penalty as specified against each category of Savings / Current account shall be levied in the account.
A deposit under the scheme shall be accepted for a period of 90 days to five years in flexi saving accounts and for 15 to 45 days in flexi current accounts. By default, it is 90 days in flexi Saving accounts and 15 days in flexi Current accounts.
The amount invested in the scheme shall attract rate of interest prescribed by the Bank on domestic Term Deposits from time to time. Simple interest shall be booked on quarterly basis but liquidation of interest will be on maturity only. Staff / Ex-Staff and Senior Citizens will be entitled for additional rates in Flexi Fixed Deposits as applicable in Domestic Term Deposits which presently is one percent higher.
When the balance amount in FFD linked Savings Bank / Current account shall cross over the minimum balance, the excess, in multiple of Rs. 5000/- or 10000/-, as applicable for different categories as per enclosed Annexure I, will be transferred automatically to Flexi Fixed Deposit account, for the time period as mandated by the depositor at the time of opening of account under the scheme.
Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be available to the depositor whenever there is a requirement of funds in his / her / their operative account i.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same rate of interest, as agreed upon in the contract. In such event, the amount from flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method. However, the funds to be transferred as a reverse sweep to Savings Bank/Current Account will also meet the requirement of maintaining minimum balance.
In lieu of the regular Term Deposit Receipt, the Flexi Fixed deposit Pass Sheet shall be made available to the customers maintaining account under the scheme.
No loan / OD in any shape shall be allowed against deposit held in Flexi Fixed Deposit Scheme
Interest payable is subject to TDS.
The rate applicable in lase of premature with drawer shall be 1% below the rate applicable for the period of deposit remained with the bank.
As applicable to deposit amounts.
Applicable
With the implementation of proposed Flexi Fixed Deposit Scheme w.e.f. 1st July, 2011, all future Auto Sweep (Sweep-In) as well as Reverse Sweep shall be subject to the terms and conditions as stated hereinabove. Accordingly, the existing customers of branches letter shall be issued by the branch duly communicating about the above noted Scheme.