Launching of a New Deposit Scheme - AB "Recurring Plus" Scheme

Recurring deposit scheme is meant for steady and gradual saving for individuals to build-up savings through regular monthly deposit of a fixed sum over a fixed period and mobilizing savings of those who get income on monthly basis and can afford to set apart a portion of their income. It helps the depositors to accumulate their savings over a period to meet future contingencies. It is handy even for Business Community, Firms, Companies, Educational Institutions and other Associations, who wish to build a corpus over a period of time to meet future requirements.

Another major advantage in the scheme is the deposit amount carries rate of interest as in the case of other term deposits (as per the period of the deposit) while the interest accrued is not subjected to any TDS. This specific advantage provides a clear edge to Recurring Deposits over other forms of Term Deposits

Penalty for closure within 6 months – 0.50% on the outstanding balance subject to a minimum of Rs.50/- and maximum of Rs.500/-

The salient feature of Recurring Plus’ Deposit is that the depositor can step up installment amount upto 10 times of originally opted monthly installment amount.

As in the case of existing Recurring Deposit Schemes

As in the case of Term Deposits, depending upon the duration of deposit, as per extant guidelines. Senior citizens are eligible for additional rate of interest at 0.50% as per guidelines.

In multiples of Rs.100/- subject to a maximum of Rs.1,00,000/- The depositor can choose the “Core Installment’ at the time of opening the account. The monthly installment cannot be below the core amount chosen at the time of opening the account.

Step Up option

The Depositor will have the option to step up the monthly installments subject to the minimum and maximum prescription as per the following guidelines.

• The depositor can step up the installments up to 10 times of Core amount during any or all months before maturity of the deposit. Such amounts can be deposited in the account any number of times during the months subject to the following conditions:
  
• Total amount so deposited during a month shall not exceed 10 times the Core amount and
• The amount of deposits made during a month shall not be less than the Core amount
• For the sake of clarity, a depositor, opening the account with Core amount of Rs.100/-, shall not deposit installments aggregating to more than Rs.1,000/- and with Core Amount of Rs.1,00,000/-, shall not deposit installments exceeding Rs.10,00,000/-, in any month.