Jammu And Kashmir Bank FD Interest Rate
A fixed deposit scheme is one of the most preferred investment options of Indians who seek safety against market volatility. People deposit their money in a preferred FD scheme when they wish to park their money safely.
Jammu and Kashmir Bank (J&K Bank) is one of India's oldest private sector scheduled commercial banks. Jammu and Kashmir Bank was incorporated in 1938 and is listed on the NSE and BSE, with its headquarters in Srinagar.
The government of Jammu & Kashmir holds a majority shareholding of 68.18% in the bank as on March 31, 2021. Bank has a network of 957 branches and 1386 ATMs as of July 31, 2021, spread over 18 states and 4 UTs nationwide.
Interest Rates Chart 2023
| Tenure | For General Citizens (p.a.) | For Senior Citizens (p.a) |
|---|---|---|
| 7 to 30 days | 3% | 3.5% |
| 31 to 45 days | 3.5% | 4% |
| 46 to 90 days | 4.5% | 5% |
| 91 to 180 days | 4.5% | 5% |
| 181 to 270 days | 5.5% | 6% |
| 271 days to less than 1 year | 6% | 6.5% |
| 1 Year to less than 2 years | 7.1% | 7.6% |
| 2 years to less than 3 years | 6.75% | 7.25% |
| 3 years to less than 5 years | 6.5% | 7% |
| 5 years to less than 10 years | 6.5% | 7% |
| Note: All interest rates are updated as of 18th May 2023 | ||
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Jammu And Kashmir Bank@6.75% p.a
₹1,14,325
All you need to know about Jammu And Kashmir Bank FD Interest Rate
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Types of Jammu and Kashmir Bank Fixed Deposits
Fixed Deposit Receipt
J&K Bank offers a non-cumulative fixed deposit scheme where investors receive simple interest quarterly.
- Minimum investment: ₹100
- Maximum investment: No upper limit
- Scheme tenure: 7 days to 10 years
- A loan facility is available with this deposit
- Premature withdrawal is also allowed with an applicable penalty
Cash Certificate Scheme
J&K Bank offers a Cash Certificate Scheme for investors interested in parking their money in a cumulative term deposit scheme where compound interest gets paid at the time of maturity.
- Minimum investment: ₹1,000
- Maximum investment: No upper limit
- Scheme tenure: 7 days to 10 years
- Interest on this deposit scheme is compounded quarterly
- You can avail loan of up to 90% of the deposit amount plus interest accrued.
- Premature withdrawal is also allowed with an applicable penalty.
Mehandi Deposit Scheme
Through the Mehandi Deposit scheme, J&K Bank aims to assist parents in securing their children's futures. It provides a fixed maturity sum at fixed interest rates and tenures.
The documents required for this FD scheme are application forms, photographs and KYC documents of parents/guardians, guardianship proof of the legal guardian, the minor’s birth certificate and a minor declaration signed by the parent/guardian.
- Minimum investment: This will depend on the tenure and the maturity amount
- Maturity amount: ₹25,000, ₹50,000 or ₹1,00,000
- Scheme tenure: 5 years, 7 years, 10 years, 12 years, or 15 years
- Interest on this deposit scheme is compounded quarterly
- This deposit also comes with an Accidental Insurance Cover (linked to the maturity amount) for parents/guardians
- You can avail loan of up to 90% of the deposit amount plus interest accrued.
- Premature withdrawal is also allowed with an applicable penalty.
Tax Saver Term Deposit Scheme
If you invest in this FD, you are eligible for a tax deduction of up to ₹1.5 lakhs in a given year under Section 80C of the Income Tax Act of 1961.
- Minimum investment: ₹1,000 and its multiples
- Maximum investment: No upper limit
- Scheme tenure: 5 years to 10 years
- Option 1 (TSTDS – 1): Here, simple interest is applied quarterly, as in the case of an FDR and is paid to the customer in cash or credited to their account every quarter.
- Option 2 (TSTDS – 2): Here, discounted simple interest is paid to the customer in cash or credited to their account at the end of every month.
- Option 3 (TSTDS – 3): Compound interest is paid along with the principal at maturity.
- Premature withdrawal is not allowed for 5 years. Subsequently, you can withdraw money prematurely with an applicable penalty. The penalty is applicable for deposits over 5 years.
- You cannot avail loan under this scheme.
Smart Saver Term Deposit Scheme
The scheme provides a core term deposit that activates an auto sweep facility. The balance above the floor level gets swept into the customer's operative account (savings or current account).
- Core term deposit amount: ₹25,000 and above in multiples of ₹1,000 as core deposit
- Scheme tenure:
- Core deposit: 1 year to 10 years
- Linked deposits: 180 days
- In the case of savings bank accounts, the auto sweep facility shall operate beyond the minimum balance of ₹5,000
- The minimum threshold balance in the current deposit account beyond which the auto‐sweep facility will operate shall be ₹25,000 or the prescribed Average Monthly Balance (AMB) in the particular current account variant, whichever is higher. This applies to Individuals, HUF, Sole Proprietorships & Partnerships (other than Limited Liability Partnerships)
- The minimum threshold balance in these current deposit accounts beyond which the auto-sweep facility will operate shall be ₹1 lakh or the prescribed AMB in the particular current deposit account variant. This applies to Limited Companies & Limited Liability Partnerships.
Monthly Yield Deposit Scheme
In this scheme, the depositor stands to receive monthly payouts.
- Minimum investment: ₹1,000
- Maximum investment: No upper limit
- Scheme tenure: 1 year to 10 years
- You will receive simple interest at a discounted rate
- Premature withdrawal is also allowed with an applicable penalty
Pros of investing in Jammu and Kashmir Bank Fixed Deposit
- Period: The FD with J&K Bank ranges from 7 days to 10 years.
- Convenient: Open hassle-free FD using online banking in a few minutes
- DICGC insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs.
- Minimum amount: Fixed deposits with Jammu and Kashmir Bank can be opened with an investment of as low as ₹100
- Preference to senior citizens: Additional 0.5% p.a. for senior citizens.
- Nomination facility: Depositors can nominate beneficiaries for their investments in Jammu and Kashmir Bank FDs.
- Insurance coverage: The Mehandi Deposit Scheme of the J&K Bank provides an Accidental Insurance Cover that is linked to the maturity amount for parents/guardians
Cons of investing in Jammu and Kashmir Bank Fixed Deposit
- Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.
Jammu and Kashmir Bank FD Eligibility Criteria
The eligibility criteria may vary depending on the fixed deposit scheme. But, the following points cover all the entities that are eligible to open a fixed deposit scheme with J&K Bank:
- Resident individuals (including joint accounts)
- Hindu Undivided Family (HUF)
- Sole proprietorship concerns
- Partnership firms
- Private and public limited companies
- Clubs, associations, societies, trusts
- Minors, through their parents or guardians
Documents Required for Jammu and Kashmir Bank FD Account
Here is the list of documents required to open a fixed deposit scheme with Jammu and Kashmir Bank:
- Correctly filled-up application form
- PAN card
- Form 60 or Form 61
- Officially valid KYC documents
- Photographs of depositors (Keep a minimum of 2 copies ready at hand)
- Other documents related to minors, partnership firms, companies, and HUFs, as requested by the bank
Listed below are some of the valid KYC documents:
- Aadhaar card
- PAN card
- Driving licence
- Voter ID card
- Passport
How to Open an FD with Jammu and Kashmir Bank?
Follow the steps below to open a fixed deposit scheme at J&K Bank:
Step 1: Visit the nearest Jammu and Kashmir Bank branch and ask for the fixed deposit account opening form.
Step 2: Ensure you fill up all the required details in the application form correctly.
Step 3: Depending on your preference, choose the FD tenure. J&K Bank offers tenures ranging from 7 days to 10 years. Remember that the J&K FD interest rates will vary depending on the tenure and type of scheme.
Step 4: Attach the cheque for the amount you wish to deposit in an FD scheme with the application form. You can also choose to transfer the amount via the net banking facility.
Step 5: Attach all the KYC documents as required by the bank.
Step 6: The bank will verify your account opening application form and other documents.
Once they are satisfied, you will receive an acknowledgement slip of the account opening form and the FD certificate.
Jammu and Kashmir Bank Fixed Deposit Premature Withdrawal
The depositor has to pay interest on premature withdrawal at 0.5% below the applicable interest rate for the deposit period. But, the deposit must be with the bank for at least 7 days.
Tax implications on Jammu and Kashmir Bank FD
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:
- Taxpayers can invest in FD either through public or private sector banks.
- Individuals and HUFs can avail tax deductions by investing in tax savings FDs.
- Bank's five-year tax saving FD offers exemptions under Section 80C.
- Investors cannot get loans against these FDs.
- In the case of joint holders, only the first holder can get tax benefits.
How to claim tax benefits?
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
- TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year.
- For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.
FAQs
Why should I invest in FDs when other investment options offer higher returns?
FDs provide a guaranteed return on investment and are relatively low-risk compared to other investment instruments.
Is the ₹5 lakhs DICGC insurance cover applicable on Jammu and Kashmir Bank FD?
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Jammu and Kashmir Bank FD.
When is the right time to invest in a fixed deposit?
The right time to invest in a fixed deposit depends on the investor's financial goals, risk appetite, and prevailing interest rates. Generally, it is advisable to invest in fixed deposits when the interest rates are high and are expected to remain stable for the investment period.
How can I close my FD account at J&K Bank?
Follow the steps given below to close your FD account at J&K Bank:
Step 1: Visit the nearest branch of J&K Bank and fill up the FD account closure form.
Step 2: Attach all the copies of your KYC document. The bank may ask you to self-attest these documents.
Step 3: Submit the FD Certificate or FD Receipt, which you received at the time of opening the FD account.
What is the auto-sweep facility at J&K Bank?
The underlying concept of the auto-sweep facility is that the amount beyond the threshold minimum balance in the operative account (savings or current account) will be auto-swept to form a linked term deposit. You can avail this facility if you open an account under the Smart Saver Term Deposit scheme at J&K Bank.
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.