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Interest calculation methodology :
On deposits opened for periods of
a. less than six months, the interest shall be paid for actual number of days on the basis of 365 days a year
b. six months and above, interest shall be calculated for completed months and the actual number of days if the terminal month is incomplete, on the basis of 365 days a year.
In case of deposits opened for complete months, interest would be calculated for the number of months. E.g. 6 months, 8 months etc.
Under reinvestment deposit (Akshaya) of 6 months and above tenors, the interest is calculated on a quarterly compounded basis and therefore, the annualised yield would be higher than the offer rate. Example: One year Term Deposit - Rs.10, 000/- in reinvestment deposit (ADR); Rate of interest: 10.25% p.a. will earn interest of Rs.1065/- which works out to an annualised yield of 10.65% upon maturity, as per the calculations given hereunder.
Deposit Amount  : Rs.10,000/-
Rate of interest  : 10.25% per annum
Maturity Value   :   Rs.11,065/-
Annualised yield  : 10.65% (Rs.1065/Rs.10,000/-)
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Premature closure
a. Premature closure of deposit is done only upon specific request from the customer.
b. Interest is payable at the rate applicable, as on the date of the deposit, for the period the deposit has remained with the bank, less 1% (subject to change from time to time)
c. Interest calculation methodology explained above would be followed in case of premature closure of the deposits also.
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Renewal of deposits
a. When a deposit matures for payment, the depositor may prefer to continue/renew the deposit in the bank for a further period.
b. The provision of automatic renewal is available under Fixed and Reinvestment Deposit (Akshaya) schemes and is not available under Cumulative/ Pragathi Deposit schemes.
c. Depositors under Cumulative and Pragathi deposit schemes may opt for transfer of the maturity proceeds to Fixed or Reinvestment Deposit schemes on maturity, for which fresh account opening form should be furnished.
d. Depositor can give auto renewal instructions either for a similar period for which the deposit has been originally contracted or for a different period.
e. Instructions to renew from the maturity date would be accepted
(a) At the time of placing the deposit or
(b) at any time before the maturity of the deposit / on the date of maturity or
(c) within 14 days from the date of maturity of deposit
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Overdue Deposits
The deposit which remains with the bank without renewal or maturity instructions, will be treated as Overdue Deposits and shall not earn any interest from the date of maturity.
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