Important Information:
Interest calculation methodology
A. For term deposit with tenor below 1 quarter (3 months): Interest is calculated on the basis of actual number of days considering the year as 365 days.
For term deposit with a tenure greater than 1 quarter: a) Interest for the quarter is calculated considering each quarter as 90 days and year as 360 days (90 days x 4 quarters). b) Interest for the last quarter is calculated on the basis of actual number of days considering the year as 365 days.
Reinvestment Term Deposit: a) Interest for each completed quarter is calculated considering each quarter as 90 days and year as 360 days (90 days x 4 quarters). b) Interest for the last quarter is calculated on the basis of actual number of days considering the year as 365 days. c) Interest for each quarter is compounded.
This methodology (A) is applicable for all rupee denominated deposits (Resident / NRO / NRE) opened after
24 February 2009.
B. Interest on Term Deposit will be calculated on the basis of ‘Actual number of days considering the year as 365 days’. For Reinvestment Term Deposit, Interest is compounded on a quarterly basis.
This methodology (B) is applicable for all rupee denominated deposits (Resident / NRO / NRE) opened on and after 2nd January 2018.
Premature withdrawal of the Term Deposit shall be subject to penalty of 1% on the interest rate payable for the tenor the deposit has been held with the bank. If premature penalty rate falls below the applicable interest rate for reduced tenure then penalty rate will also be reduced to the extent of applicable interest rate.On the remaining amount, the interest rate applicable as on the deal set up date, for the residual value band and residual tenor will be applied. In the event of the death of the depositor, premature termination of Term Deposits will be allowed subject to completion of documentary formalities as required. Such premature withdrawal would not attract any penal charges. There is no interest payment in case of premature withdrawal of the NRE/FCNR Term Deposit before the completion of the minimum tenor (1 year). In the case of premature withdrawal of NRE term deposits for conversion into Resident Foreign Currency (RFC) Account, the bank would not levy any penalty for premature withdrawal.