TIME DEPOSIT - OPENING OF ACCOUNTS
Categories of Accounts :
There are four categories : 1year TD, 2 year TD, 3 year TD and 5 year TD.
Types of Accounts :
(a) a single adult; or
(b) up to a maximum of three adults in joint names
(c) a minor who has attained the age of ten years and
(d) a guardian on behalf of a minor or a person of unsound mind
(b) up to a maximum of three adults in joint names
(c) a minor who has attained the age of ten years and
(d) a guardian on behalf of a minor or a person of unsound mind
(ii) On the basis of mode of operation, Joint Accounts shall be of two types, namely:
(a) Joint ‘A’ type, to be operated by all the depositors or the surviving depositors jointly.
(b) Joint ‘B’ type, to be o operated by any of the depositors or the surviving depositors
severally.
Number of accounts and limit of deposits: -
An adult can open one or more accounts either in his/her own name or jointly with another. A minor/person of unsound mind can open one or more accounts to be operated upon by him or the guardian on his/her behalf. More than one account can be opened under all categories. There is no limit to the amount of deposit in an account.
Opening of Accounts:
(1) The procedure relating to the opening of Savings Accounts will also apply to Opening of TD Accounts.
(2) The preliminary receipt (SB-26) will be issued in branch offices from the same book as used for savings accounts but the receipt will be super scribed on the top with words “TD Account”. This may be done either in manuscript or by means of rubber stamp impression.
Note 1: - The procedure to be followed by the head and sub offices when the TD account is
opened by cheque may be seen at Rule 54 CBS Manual.
(3) Accounts can be opened through Net Banking and Mobile banking also by crediting the deposit amount from the Savings Account of the customer(s)
Limits and Income Tax exemption :
TD accounts can be opened with a minimum deposit of Rs.1000 and without any maximum limit. Deposit amount should be in the multiple of Rs.100. Only one deposit is allowed in a single account. A customer can open any number of TD accounts.
The deposit made in a 5 year TD account is exempted from Income Tax under Sec.80C
The interest amount earned from TD accounts is taxable. However, for Senior Citizens, the total interest earned from all types of Fixed deposit accounts in a year upto Rs.50000/- is exempted from Income Tax.
