Overview of Lakshmi Vilas Bank
Established in 1926 to cater to the financial needs of the population in and around Karur, Tamil Nadu, Lakshmi Vilas Bank is a full-fledged commercial bank operating with a wide network of 400 branches in India. With a strong customer base consisting of business entrepreneurs and retail customers, Lakshmi Vilas Bank offers an entire spectrum of services comprising of personal banking, MSME banking, NRI banking, wealth management and remittance services. True to its driving motto “life smiles where LVB serves” the banks offers world class services with a dedicated banking team to deliver on customer requirements.
Recurring Deposit (RD) From Lakshmi Vilas Bank
A recurring deposit comes with the advantage of helping the customer save consistently with small amounts, reaping in great returns with attractive interest rates. Considered as a safe form of investment a recurring deposit not only promises great dividends, but also offers privileges like tax benefits for a salaried professional. A recurring deposit is not a one-time investment and customers can steadily contribute to their RDs on a monthly basis. At the end of their deposit tenure, depositors can use the lump sum amount received on long-term personal commitments planned previously. Lakshmi Vilas Bank offers a basic recurring deposit scheme and the Lakshmi Lakhpathy Recurring Deposit with an additional benefit of a general insurance coverage for the deposit account holder.
Types of Recurring Deposits from Lakshmi Vilas Bank
- Regular Recurring Deposit
- Lakshmi Lakhpathy Recurring Deposit
Features of Lakshmi Vilas Bank Recurring Deposits
Regular Recurring Deposit
- The Lakshmi Vilas Recurring deposit can be opened with a minimum deposit of Rs 100/- or in multiples and the bank does not have a cap on the maximum deposit account.
- Deposit tenures can be opted anywhere between 12 months to 120 months.
- The monthly installments will be repaid to the customers at the time of maturity of the recurring deposit along with the accrued interest.
- A deposit account can be opened by a single individual, as joint holders or for minors by parents or guardians.
- Recurring deposit account holders can also procure loans on their RD accounts.
- The nomination facility is also available to Lakshmi Vilas Bank recurring deposit customers.
Lakshmi Lakhpathy Recurring Deposit
- The Lakshmi Lakhpathy Recurring Deposit comes with an additional benefit of a general insurance coverage of Rs 1.20 lakhs. The general insurance coverage offered along with this recurring deposit is in association with Bajaj Allianz and the insurance premium required will be paid out of the accrued interest in the deposit. The policy compensates up to an amount of Rs 50,000/- for damages on household items, Rs 5000/- as travel insurance, Rs. 5,000/- as cash for accidental hospitalizations and Rs. 10,000/- for normal hospitalizations.
- Any individual over the age of 18 can open a Lakshmi Lakhpathy Recurring Deposit as a single holder or jointly.
- Depositors can choose tenures ranging up to a period of 84 months.
- The minimum sum required every month is Rs 1000/-.
Interest Rates offered on Lakshmi Lakhpathy Recurring Deposits
Lakshmi Lakhpathy Recurring Deposits are offered to customers at an interest rate of 8.75% for a tenure of 84 months. The minimum deposit amount required is Rs 1000/- per month and at the time of maturity of the deposit, the customer is entitled to earn a sum of Rs.1, 14,829/-. Senior citizen interest rate benefits are not applicable on recurring deposit accounts.
Process for Opening a Recurring Deposit account with Lakshmi Vilas Bank
Recurring deposit accounts can be opened without any hassles at any Lakshmi Vilas Bank branch or using the bank’s web portal. Existing customers can easily approach bank officials and open a RD account by furnishing the required documents along with a fully filled-in application form. Customers can also place requests for opening a recurring deposit account on the LVB website by providing the necessary personal credentials and can also track the status of their application online. An executive from LVB will get in touch with the applicant to complete further formalities for opening the recurring deposit account.
Penalty Clause for Premature RD Closure in Lakshmi Vilas Bank
A premature closure of a recurring deposit account before maturity is permitted by Lakshmi Vilas Bank. The insurance coverage will be valid up to the period for which the premium has been paid, which will be deducted from the account holder’s earnings.