North East Small Finance Bank Fixed Deposit
Updated 06 Dec 2023
Fixed deposits are a safe and secure way to invest money and get a fixed return. North East Small Finance Bank, a subsidiary of RGVN (North East) Microfinance Limited, is one of the trusted names in the banking sector regarding fixed deposits.
In this blog, we'll explore the different types of fixed deposits the bank offers, the benefits of investing in them, their features, eligibility criteria, and more.
Types of FDs in North East Small Finance Bank
- Regular FD
Benefits of Investing in North East Small Finance Bank Fixed Deposits
- Premature withdrawal: The tenure of the FD with North East Small Finance Bank ranges from 7 days to 10 years. An investor can opt for premature withdrawal.
- Convenient: Having a savings account in North East Small Finance Bank allows easy opening of fixed deposits, and they can be liquidated whenever required.
- Minimum amount: Fixed deposits can be opened with an investment as low as ₹1,000.
- Liberal payout: Monthly or quarterly interest payout options are available.
- Auto-renewal option: At the time of maturity, the FD gets renewed automatically.
- Loan against FD: The bank permits loans against their FDs.
- DICGC insurance: An investment is covered up to ₹5 lakhs by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- Nomination facility: Beneficiary nominations are available for FD investments.
Features of North East Small Finance Bank FDs
A fixed deposit is an account where an investor can keep money in the bank, earning a percentage of interest at the end of the specified term period. North East Small Finance Bank’s FD comes with an interest rate between 3-8% p.a. for the general public and 3.75-8.75% p.a. for senior citizens. Let's look at some of its features:
- The minimum amount of investment is ₹1,000.
- The tenure can range between 7 days to 10 years.
- The bank provides an auto-renewal facility.
- Investors can avail loan or overdraft facility on FD.
- Options for premature closure or premature withdrawal are available.
- Payouts can be made on a monthly or quarterly basis.
- Reinvestment options are at hand.
- There is a penalty of 1% on early withdrawal or closure.
- Based on the tenor, the interest rate ranges from 3% to 8.5% for the general public and 3.75% to 9.25% for senior citizens.
- Any individual
- Hindu Undivided Family (HUF),
- Partnership firms,
- Associations, trusts, societies and clubs,
The following documents are required to invest in North East Small Finance Bank Fixed deposits:
- PAN for all entities.
- ID proofs of authorised signatories for companies.
- Passport-size photographs of directors, partners, members, or individuals.
- KYC for all entities.
- Certificate of incorporation for companies.
- Declaration deed for Individuals, HUF, and Proprietorships.
- Memorandum of Association for companies.
- Letter from partners to open and operate the account for partnership firms.
- Board Resolution to open and operate the account for associations and clubs.
- Trust deed copy and copy of the certificate of registration for trusts.
How to open an FD in North East Small Finance Bank
- Personally visit the nearest bank branch.
- Fill out the required FD form.
- Provide details such as deposit amount, tenure, etc.
- Attach the required documents such as PAN, photographs, etc.
- Payment can be made through cheque, DD, or online banking.
- The banker will verify the details and proceed further.
- Obtain the acknowledgement slip of the FD account.
North East Small Finance Bank FD Premature Withdrawal
North East Small Finance Bank allows premature withdrawal of FDs.
The Bank levies a 1% penalty on the interest for all premature withdrawals.
What is the highest interest rate on North East Small Finance Bank’s FD?
The highest interest rate for regular citizens is 8% for 1111 days of maturity. And for senior citizens, it is 8.75%.
Is the ₹5 lakhs DICGC insurance cover applicable on North East Small Finance Bank FD?
Yes, the ₹5 lakhs DICGC insurance cover applies.
How to deposit the FD amount?
FD amount can be deposited via cheques, DD, credit/debit cards, internet banking, etc.
Does the bank's staff get an additional interest rate on the FDs?
Yes, the bank's staff gets an additional interest rate.
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