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.
|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||7%||7.5%|
|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 1st Aug 2023|
Fixed Deposit Receipt
J&K Bank offers a non-cumulative fixed deposit scheme where investors receive simple interest quarterly.
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.
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.
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.
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).
Monthly Yield Deposit Scheme
In this scheme, the depositor stands to receive monthly payouts.
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:
Here is the list of documents required to open a fixed deposit scheme with Jammu and Kashmir Bank:
Listed below are some of the valid KYC documents:
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.
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.
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)
FDs provide a guaranteed return on investment and are relatively low-risk compared to other investment instruments.
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Jammu and Kashmir Bank FD.
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.
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.
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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