Andhra Bank
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FAQs
 
  Retail » Deposits
 
AB SMART CHOICE

RD Plus
 

AB SMART CHOICE

  What is the minimum and maximum period of the deposit?
Minimum 7 days and maximum 179 days.
 
  What is the minimum and maximum amount of deposit under the scheme?
Minimum Rs.1 crore and no Maximum limit. However, branches have to obtain prior permission from Corporate Planning department, Head Office before accepting/renewing the deposits of above Rs.10 cr.
 
  How do I know the applicable rate of interest on the deposit?


The rates of interest as notified from time to time by the Head office on domestic term deposits for the periods from 7 days to 179 days for Rs.1.00 crore and above are applicable.

 
 Is the rate of interest protected even if the deposit is prematurely cancelled?

No. The applicable rate for the period, the deposit runs will be applied like any other term deposit. For Ex. If the deposit of 5 cr was made on 04/12/2014, then the applicable interest rate for the full term run deposit is 8.25%. If the deposit is cancelled between 7 and 14 days, 15 days to 45 days the applicable rate will be 7.50%. Similarly for a deposit which was cancelled between 46 days to 90 days it is 8.00%. Similarly for a deposit which was cancelled between 91 days to 179 days it is 8.25%. Please note that there is no premature penalty on cancellation. In the above example, it was assumed for a deposit made on 04/12/2014 and the prevailing interest rates as on date of deposit for the period for which deposit run was considered for arriving applicable rate of interest on the date of interest.

The above detailed clarification is given as some of the branches are still not familiar with the Smart Choice Deposit Scheme and thinking that 8.25% is applicable for a deposit cancelled between 7 days and 179 days.

 
  Is there any penalty for premature cancellation of the deposit after the minimum period?

No penalty is levied on premature cancellation of the deposit any time after the minimum period of the deposit. I.e., 7 days.

 
  Is partial withdrawal allowed any time during the run period of the deposit?

YES. In case the customer wants to take some amount out of existing deposit, the deposit will be prematurely cancelled and applicable rate for the run period will be paid without penalty. After payment of the amount of withdrawal to the depositor, the remaining amount will be re-deposited from the original date of deposit (with retrospective date) and for the original deposit period with the original interest rate.

Conditions for part withdrawal:

  1. The withdrawal amount should be equal to or more than the minimum deposit of the scheme. i.e. Rs.1.00 crore.

  2. The residual amount of the deposit which is to be re-deposited should also be equal to or more than the minimum deposit amount of the scheme. I.e. Rs.1.00 crore.

  3. If the residual amount of the deposit is more than Rs.10 crore, prior permission from Corporate Planning Department, Head Office is to be obtained.
 
  Are the Senior citizen and Staff eligible for additional rate of interest as available in the other term deposit schemes?
NO. Only card rate is to be given.
 

RD PLUS

 
  What is the minimum amount of installment?
Minimum instalment of Rs.100/- in multiples of Rs.100/- subject to maximum of Rs.1,00,000/-
 
  Can the installment be increased? If so, by what amount?
Yes. The depositor can step up installments up to 10 times of core installment during any or all months before maturity of deposit. Ex: If the core installment is Rs.100/- the depositor can deposit installments aggregating to Rs.1000/- in any month.
 
  How the interest is calculated?

Interest is payable every quarter on monthly product basis on the minimum balance between 10th and last day of the month. Senior Citizens are eligible for additional rate of interest @0.50%.

 
  What is the penalty for delayed payment of instlament and what the penalty for       pre-closure of the account?
No penalty for delayed payment of installment. Interest, in pre-closure of the accounts, will be paid at the applicable Term Deposit rate, for the actual period for which the deposit has remained with the Bank, without any penalty thereof.
 
  Whether TDS is applicable for the deposit?

The interest accrued is not subjected to any TDS.

 
  What is the rate of interest payable on the deposit?
The deposit amount carries rate of interest as in the case other term deposits, as per the period of deposit.
 
  Whether loan can be availed against the deposit?
Deposit Loan or Overdraft may be allowed during the period of the deposit upto 90% of the balance in the account subject to minimum of Rs.5000/-.
 
  Whether nomination facility is available on the deposit?
Yes. Nomination facility is available as per extant guidelines.