Abhyudaya Co-operative Credit Society Limited was started by social workers and labour movement activists to serve the causes of mill workers, other industrial, lower-middle-class groups and neglected economically weaker sections of society. Initially, the paid-up capital was ₹5,000. After that, Abhyudaya Co-operative Credit Society got converted into Urban Co-operative Bank. In June 1965, Abhyudaya Co-operative Bank Ltd. was started with the motto “Prosperity through Cooperation”.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 90 days||4.25%||4.5%|
|91 days to 180 days||5.5%||6%|
|181 days to 12 months||6.6%||7.1%|
|More than 12 months to 3 years||7%||7.5%|
|Above 3 years to 5 years||6.25%||6.5%|
|Above 5 years and up to 10 years||6.25%||6.5%|
|Note: All interest rates are updated as of 18th May 2023|
Fixed Deposits are a secured investment instrument in which a lump sum amount is deposited for a fixed tenure at a predetermined interest rate. The interest rate offered under fixed deposits is higher than in saving bank accounts. Let’s know more about the types of FD Abhyudaya Co-operative Bank offers:
Monthly Income Deposit Scheme
You can open this deposit by investing as low as ₹500. The Minimum tenure for a deposit under this scheme is 7 days, and you can invest a maximum of up to 10 years. The interest payout is monthly. Interest will be paid either in cash or credited to the depositor's bank account. The Depositors can avail a loan against FD to the extent of 90%.
Quarterly Interest Deposit Scheme
You can open this deposit by investing as low as ₹500. Interest payout is quarterly, which can be paid in cash or credited to the depositor's bank account. The depositors can avail loan against FD to the extent of 90% of the amount accrued.
The Fixed Deposit Receipt
The minimum amount of deposit is ₹500. You will receive the interest at the time of maturity. The minimum tenure of this deposit is 7 days, and it goes up to 10 years.
Quarterly Interest cum Reinvestment Plan
The minimum amount of deposit will be ₹500. The bank will pay the interest amount at the time of maturity. The depositors can avail loan to the extent of 90% of the deposit amount.
Abhyudaya Tax Saving Scheme (ATSS)
The depositor can claim a tax deduction of ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. The minimum deposit amount in this scheme is ₹5,000, and then in the multiples of ₹100, the maximum amount acceptable under this scheme is ₹1.5 lakhs per annum. There is a lock-in period of 5 years; premature withdrawal is not permissible. However, in case of the depositor's death, premature withdrawal is permissible even during the lock-in period. The depositor cannot avail credit facility against the amount of the deposit. In the case of a joint account, only the first holder is entitled to a tax benefit. A nomination facility is also available.
The following can open a deposit with the Abhyudaya Co-operative Bank:
Know Your Customer (KYC) norms are mandatory for opening a bank account in India. The following documents are required to comply with KYC norms:
For a depositor who is an existing account holder of the bank (having savings or current account) fixed deposit can be opened using the following procedure:
By Login into internet banking
Step 1: Visit the Abhyudaya Co-operative Bank website, and navigate to the “Personal Login” tab. Provide username and password to log in.
Step 2: Go to the “Fixed Deposit Tab”
Step 3: Enter all the details.
Step 4: Verify details and click confirm. A confirmation message will be displayed on the screen.
By using a Mobile App
Step 1: Download the Abhyudaya Co-operative Bank Mobile App and log in using your credentials.
Step 2: Select the 'Open FD' option from the app's main menu.
Step 3: Choose the type of deposit account you want to open based on your preferences and requirements.
Step 4: Provide all the necessary details, including your personal information, nominee details, and payment and maturity instructions.
Step 5: After you have verified all the details, click on the 'Confirm' button to complete the transaction.
Once the transaction is completed, you should receive a confirmation message on the screen indicating that your FD account has been opened.
Step 1: Visit the nearest branch of Abhyudaya Co-operative Bank.
Step 2: Ask for a fixed deposit application form and fill in all the details.
Step 3: Submit all the documentary proofs.
Step 4: Deposit the money.
Step 5: Collect the Fixed Deposit Receipt.
According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
If the depositor furnishes an incorrect PAN for a fixed deposit, the bank may deduct tax at a higher rate of 20% instead of the prescribed rate of 10% or as applicable under income tax rules. The depositor may also face legal and financial implications as furnishing incorrect PAN details violates income tax laws. Therefore, ensuring that the PAN details are accurate while opening a fixed deposit account is crucial.
There are no charges at the time of opening/maturity of the fixed deposit. However, there is a penalty in case of premature withdrawal. Moreover, the bank may deduct TDS (Tax Deducted at Source) at the rate of 10% if the amount of interest exceeds ₹40,000 (₹50,000 in the case of senior citizens).
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Abhyudaya Co-operative Bank FD.
They will not pay interest if you withdraw the deposit within 7 days of the auto-renewal. However, after completion of 7 days from the date of auto-renewal, the bank will pay the interest at the rates applicable after deducting a penalty of 1% for the period the deposit has remained with the bank.
If a fixed deposit certificate is lost, the depositor must inform the bank and apply according to the rules. The bank will issue a duplicate certificate with the deposit details, charging fees as applicable. Immediate reporting of the loss is necessary.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.