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Jammu & Kashmir Bank Fixed Deposit

Updated 06 Dec 2023

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.

Types of Jammu and Kashmir Bank Fixed Deposits

  • Fixed Deposit Receipt
  • Cash Certificate Scheme
  • Mehandi Deposit Scheme
  • Tax Saver Term Deposit Scheme
  • Smart Saver Term Deposit Scheme
  • Monthly Yield Deposit Scheme

Benefits 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 J&K Bank provides an Accidental Insurance Cover that is linked to the maturity amount for parents/guardians.

Features 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
  • Based on tenor, the interest rate of the scheme ranges from 3% to 7.10% for the general public and 3.5% to 7.6% for senior citizens.

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.
  • Based on tenor, the interest rate of the scheme ranges from 3% to 7.10% for the general public and 3.5% to 7.6% for senior citizens.

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.
  • Based on tenor, the interest rate of the scheme ranges from 3% to 7.10% for the general public and 3.5% to 7.6% for senior citizens.

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.
  • Based on tenor, the interest rate of the scheme ranges from 3% to 7.10% for the general public and 3.5% to 7.6% for senior citizens.

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
  • Based on tenor, the interest rate of the scheme ranges from 3% to 7.10% for the general public and 3.5% to 7.6% for senior citizens.

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
  • Based on tenor, the interest rate of the scheme ranges from 3% to 7.10% for the general public and 3.5% to 7.6% for senior citizens.

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

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

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:

  • Visit the nearest Jammu and Kashmir Bank branch and ask for the fixed deposit account opening form.
  • Ensure you fill up all the required details in the application form correctly. 
  • 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.
  • 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. 
  • Attach all the KYC documents as required by the bank. 
  • 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.

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.

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Calculate Jammu & Kashmir Bank FD Returns

₹1,00,000
6%
365
days
daysmonthsyears
Maturity Amount₹1,06,000

Understanding Fixed Deposit

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