Overview of Nainital Bank Fixed Deposit

Nainital Bank

Incorporated in 1922, the Nainital Bank Limited (NBL) is a scheduled commercial bank with a turnover of Rs. 7,120 crore as of last year. The Bank of Baroda holds about 98.57% share in Nainital Bank while the remaining 1.43% shares are held by the public. Nainital Bank has around 120 branches spread across Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan operating in the CBS platform. The bank also provides RTGS, NEFT, SMS alerts, ATM Card bearing RuPay and mobile banking facilities among others for its customers. Apart from personal banking, the bank provides rural and agricultural banking services.

Nainital Bank offers interest rates ranging from 4% to 9% depending on the deposit amount with maturity period ranging from 7 days to up to 10 years. Also, the deposits can be renewed. Tax is deducted at source from interest on fixed deposits as applicable as per the Income Tax Act, 1961. The bank offers nomination facilities to its customers.

Who can open an FD account with Nainital Bank?

The account can be opened by any individual. Two or more individuals can open a joint account, Account can be opened by illiterate persons, minors, clubs, blind persons and associations in addition to trusts and agencies permitted by the Reserve Bank of India (RBI).

What are the FDs offered by Nainital Bank?

Nainital Bank offers around six fixed deposit plans, namely, regular, short term plan, reinvestment deposit, Naini Gold Sweep In, Naini Super Fixed and Naini Swarn Pushp Plan for various durations. Under the regular plan, the bank offers simple deposits which can be opened with a minimum investment of Rs.1,000. The minimum tenure of fixed term is 12 months. Under the short term plan, the bank offers competitive interest rates for deposits which can be opened with a minimum investment of Rs 1,000 for a duration ranging from 7 days to 12 months.

Under the reinvestment deposit plan, deposits can be opened with a minimum investment of Rs. 1,000. Under the Naini Gold Sweep In plan, fixed deposit accounts can be opened through savings account. Nainital Bank offers Naini Super Fixed schemes for 31 days which can be linked with the existing savings or current account. Under Naini Swarn Pushp Plan, the bank offers bulk investment deposits into small units of Rs.1,000 for competitive interest rates. The minimum tenure of the term deposit is 15 days (deposit can be a multiple of Rs.1000).

What is the minimum amount required to open an FD account with Nainital Bank?

The minimum amount required to open a fixed deposit account is Rs. 1,000.

What is the minimum / maximum period for which funds can be held in as fixed deposits with Nainital Bank?

Minimum tenure is 7 days while the maximum tenure for which funds can be held in fixed deposits with Nainital Bank is 10 years.

What is the procedure to open a fixed deposit account at Standard Chartered Bank?

Get a fixed deposit application form from Nainital Bank. Find details about the different rates of interest offered by the bank from branches near you. The documents below have to be submitted along with your application form to open an account.

• Passport size photograph
• PAN Card or Form No. 60/61 for individuals who do not have PAN card
• Cash/ self-drawn cheque for fixed deposit amount
• Nomination form
• Identity verification (passport/driving license/letter from employer/voters ID card/ pass book/photo ration card/ration card/letter from recognised public authority)
• Address verification
• Signature verification
• Age verification for senior citizens

What are the interest rates offered on Nainital Bank fixed deposits?

Interest rates offered by Nainital Bank range from 4% to 9% depending on the maturity period and the deposit amount. Senior citizens are offered an additional interest of 0.50% for deposits placed less than Rs.1 crore. The tenure of short term deposit can range from 7 days to 12 months while schemes such as Naini Swarn Pushp Jama Yojana have a minimum tenure period of 15 days. However, the maximum period could go up to 10 years.

Are FD accounts with Nainital Bank taxable?

The amount invested in fixed deposits with a maturity period of 5 years in a scheduled bank is eligible for tax deduction under section 80C. However, the interest earned on the deposit is taxable. Tax will be deducted at the source, if the interest income on a fixed deposit per annum exceeds Rs.10,000.

Does Nainital Bank offer tax saver fixed deposits?

Under the Naini tax saver fixed deposit, individuals can avail of tax benefits for up to Rs. 1 lakh as per section 80C of Income Tax Act. Interest on the deposit is liable to tax. All individuals and HUF are eligible for Naini tax saver scheme. The said scheme is most suitable for salaried persons (higher and middle income groups) and individuals. Firms, companies, trusts, societies, clubs, institutions and corporates among others are not eligible.

What are the main features of Nainital Bank fixed deposit schemes?

The common features of the six schemes offered by the bank include payment of interest on a monthly or quarterly basis. If the date of interest payment falls on holidays, interest will be paid on the next working day. The bank allows repayment of term deposits before maturity. The deposit can be renewed as per the customer’s requirement. Tax is deducted at source, from the interest on re-investment deposits, as applicable, as per the Income Tax Act, 1961. Nomination facilities are also available.

Are loans provided against FDs at Nainital Bank?

No loan or any other credit facility can be taken against the security of the deposit.

Does Nainital Bank offer senior citizens special rates on their fixed deposits?

Senior citizens are offered an additional interest rate of 0.5 % for deposits less than Rs.1 crore.

What are the terms for premature closure?

If the account is closed before completion of the original term of the deposit, interest will be paid at the rate applicable on the date of deposit with the bank.

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