Abhyudaya Bank Fixed Deposit
Updated 06 Dec 2023
Fixed deposits remain a favoured investment option for many due to their stability and assurance of returns. The Abhyudaya Co-operative Bank, rooted in a rich history of serving economically weaker sections, offers an array of FD schemes tailor-made for diverse needs. Let's delve deeper into what the bank has in its pouch for potential depositors.
Types of FDs in Abhyudaya Co-operative Bank
- Monthly Income Deposit Scheme
- Quarterly Interest Deposit Scheme
- The Fixed Deposit Receipt
- Quarterly Interest cum Reinvestment Plan
- Abhyudaya Tax Saving Scheme (ATSS)
Benefits of Investing in Abhyudaya Co-operative Bank Fixed Deposits
- The bank allows premature withdrawal of deposits subject to penalty.
- If the depositor does not want to withdraw a fixed deposit prematurely, they can also consider taking a loan/overdraft against fixed deposits as an alternative funding option. This facility is not available for the Abhyudaya Tax Saving Scheme.
- Deposit Insurance and Credit Guarantee Corporation (DICGC) will grant insurance coverage for fixed deposits. The maximum amount of insurance coverage is ₹5 lakhs.
- Depositors can invest in Abhyudaya Tax Saving Scheme and claim a deduction of up to ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. However, there is a lock-in period of 5 years.
- One can easily make a fixed deposit by using internet banking.
- They offer additional interest to senior citizens higher than rates for regular citizens.
- You can open the FD with a minimum deposit of as low as ₹500.
Features of Abhyudaya Co-operative Bank FDs
- 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. Depositors can avail of a loan against FD to the extent of 90%.
- Quarterly Interest Deposit Scheme: Minimum investment of ₹500 with quarterly interest payout.
- The Fixed Deposit Receipt: Minimum deposit of ₹500 with interest paid at maturity.
- Quarterly Interest cum Reinvestment Plan: Minimum investment of ₹500 with interest paid at maturity. Loans are available for up to 90% of the deposit.
- Abhyudaya Tax Saving Scheme (ATSS): Tax deductions are available under section 80C with a 5-year lock-in period.
- Any person in an individual capacity or more than one person in their joint names.
- Any minor jointly with a guardian.
- Sole proprietary concerns.
- Partnership firms.
- Limited companies.
- Associations, clubs, societies, etc.
- Joint Hindu Families (accounts of non-trading nature only).
- Government and Quasi-Government Bodies.
- Religious institutions.
- Educational institutions (including Universities).
- Charitable institutions.
- PAN card
- Driving licence
- Voter ID card
- Aadhaar card
- Government/Defence ID card
- Aadhaar card
- Electricity bill
- Telephone bill
- Ration card
- Bank account statement
- Letter from statutory authority/ local body
- Income Tax Order
How to open an FD in Abhyudaya Co-operative Bank
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 complete all the details.
Step 3: Submit all the documentary proofs.
Step 4: Deposit the money.
Step 5: Collect the Fixed Deposit Receipt.
Abhyudaya Co-operative Bank FD Premature Withdrawal
Abhyudaya Co-operative Bank allows premature withdrawal of all FDs. The penalty for premature withdrawal is 1%.
What will happen if the depositor furnishes an incorrect PAN?
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.
Are there charges at the time of opening/maturity of Fixed Deposit?
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).
Is the ₹5 lakhs DICGC insurance cover applicable on Abhyudaya Co-operative Bank FD?
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Abhyudaya Co-operative Bank FD.
What happens when the deposit is withdrawn within 7 days of Auto Renewal of the deposit?
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.
What happens when the investor loses the FD certificate issued by 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.
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