Vruddi (Term Deposit): TERM DEPOSIT is a cash investment deposited at a financial institution. Money is invested for an agreed rate of interest over a fixed period of time or term. The surplus/savings amount is deposited for future needs/purpose like education, marriage etc. The amount deposited will earn a higher yield than savings co-operative deposit.
The interest is calculated on a quarterly basis on principal and credited once in a year. Since the interest is compounded, this particular deposit scheme is called VRUDDI DEPOSIT.
- FEATURES OF VRUDDI DEPOSIT
- The deposit amount will double in 72 months.
- It is easily accessible and safe.
- The rate of interest is higher for a longer period.
- A higher rate of interest than savings co-operative account.
- Easily convertible into cash at the time of emergency requirement of funds.
- The term for this Deposit starts with a minimum of 1 year and can go on up to maximum period of 10 years
- It may be closed before maturity period in case of emergency with reduced interest rates and penalty charges.
- Who can open the account?
- All the members of the cooperative is eligible for opening this account
- Minimum entry age – 18 years
- Minimum deposit amount Rs. 1000/-
- The minimum period of deposit is 1 year and maximum period is 10 years.
- Interest calculated quarterly but credited yearly.
- Nomination facilities available.
Loan against deposit may be given at 75% of principle but 2% extra interest charged on the agreed rate of interest.
Premature closure not allowed, but in special case premature is allowed with a penal cut in interest rate on running period.
A certificate/bond is issued to the depositor noting all the details like deposit amount rate of interest, maturity value and address
RATE OF INTEREST
|Above 1 year up to 2 years||10%||10.5%|
|Above 2 years up to 3 Years||11%||11.5%|
|Above 3 years-10 years||12%||12.5%|
* Preferential rate of interest is applied to senior citizens, widows, physically challenged & ex-servicemen