In this scheme, regular interest is added to the principal and compound interest is calculated and paid at the time of maturity of your deposit. The scheme is beneficial when amount kept for long term or renewed regularly which will help you at sudden when you are in need.

1. Period of deposit: 

Minimum 1 year maximum 10 years.

2. Interest Payment: 

Quarterly compounded interest payable on maturity.

3. Maximum amount on deposit: No limit

4. Premature Withdrawal: 

Allowed with 1% penal interest for the tenure of deposit as on the date of deposit.

5.  Additional benefits for Senior citizens: 0.10%

6. Benefits:

Loan against TDR, Nomination Facility, Insurance coverage upto 5 lakh per customer

TDS

• ​​​​​The tax on interest earned is deductible in accordance with the provisions of the Income Tax Act 1961.
• 15G/15H is required to be submitted for exemption of TDS