Overview of Corporation Bank
The existence of Corporation Bank dates back to the year 1906. It started with an initial capital of Rs. 5000. In the year 1997, it became the second Public Sector bank in India to enter the capital market. Nationalised in the year 1980, Corporation Bank has steadily evolved as one of the leading banks. Currently, it boasts of a wide network of over 9893 service outlets across the nation, and more than 18,000 dedicated employees.
Recurring Deposit from Corporation Bank
Corporation Bank offers Recurring Deposit schemes with various lucrative features and benefits. Recurring Deposit is a wise saving option for small time investors and those with a steady monthly income. A unique kind of term deposit, RD, allows the depositor to invest a fixed sum every month for a fixed period. Once the deposit tenure is over, the account holder gets back a lump sum amount including the principal and interest.
To serve to the different needs of every individual customer, Corporation Bank offers Regular Recurring Deposits and Flexi Recurring Deposits with different features and benefits.
Types of Recurring Deposits offered by Corporation Bank
Corporation Bank offers two types of Recurring Deposit schemes. They are –
- Regular Recurring Deposit
- Flexi Recurring Deposit
With a Regular Recurring Deposit you choose a fixed amount (minimum amount being Rs. 500) to be invested every month, for a definite period. On maturity of the term, the depositor gets back the amount invested so far along with interest rate payable.
With Corporation Bank’s Flexi Recurring Deposit, you can save a minimum stipulated amount every month, for 3 years and the flexibility to remit up to 10 times of the stipulated monthly instalment.
Features and Benefits of Corporation Bank Recurring Deposits
Regular Recurring Deposit
- The minimum monthly instalment amount is Rs. 50 in rural and semi-urban branches and Rs. 100 in all other branches.
- Monthly deposits should be made in multiples of Rs. 25 additional to the minimum deposit amount applicable.
- There is no maximum limit on the deposit amount.
- The rate of interest is subject to the period of deposit.
- The interest earned on your Regular RD is free of TDS (Tax Deductible at Source) deductions, as per the current income tax rules.
- Facility to choose/allot a nominee for your Regular RD account is available.
- You can choose to close your RD account prematurely. In this case, the amount of interest earned will be at the discretion of the bank.
- Corporation provides loan facility of up to 90% on the deposit, to maximise benefits for its customers.
- The deposit tenure ranges from a minimum of 12 months to a maximum of 120 months.
Flexi Recurring Deposit
- The minimum deposit period is fixed to 3 years.
- There is an option of withdrawing parts of your deposit at the end of the 1st and 2nd year.
- The depositor is given an option to remit up to 10 times of the stipulated monthly instalment, in any month during the deposit tenure.
- The minimum deposit amount is Rs. 500 per month and thereafter, in multiples of 100
- There is no limit on the maximum deposit amount
- An additional deposit of up to 10 times of the initial deposit amount is permitted every month
- On the completion of the 1st year, 50% of the accumulated principal can be withdrawn. 50% of the remaining principal can be withdrawn on the completion of the 2nd year.
- TDS deductions are not applicable on the interest amount
- A Flexi RD account can be closed prematurely. This provision is subject to the rules laid out by the bank.
- The bank offers a loan facility of up to 90% on the deposit
- Nomination facility is provided
Interest offered on Corporation Bank’s Recurring Deposit Schemes
Corporation Bank offers lucrative and competitive rates of interest for both Regular Recurring Deposit and Flexi Recurring Deposit. The rate of interest depends on the period of deposit, with the bank having the freedom to change the former.
For both the RD schemes, the interest is compounded on quarterly basis. It is credited to the account at the end of every financial year and is paid once the deposit matures. To get more clarity on the interest rates offered, customers can visit the nearest Corporation Bank branch.
Who can open a Recurring Deposit with Corporation Bank?
The following individuals/entities can open an RD account with Corporation Bank –
- Any individual can open an RD account in his/her own name
- Two individuals can open a Joint RD account in their names.
- A minor needs to be represented by his/her parents/guardian to open an RD account
- Entities like: Clubs, Associations, Trusts, Partnership Firms, Joint Stock Companies, HUFs, Government Departments, etc.