Overview of Syndicate Bank
Established as Canara Industrial and Banking Syndicate Limited in Udupi, this banking and financial services institution has a rich heritage spanning close to 90 years, ever since it was founded in 1925. The key objective of its founders was to extend financial assistance by means of pioneering the pigmy collection scheme which remains an active product of this public sector bank till today.
Listed on both BSE and NSE, Syndicate bank provides a full range of banking and financial services to millions of customers in India and abroad. In its deposits portfolio, the bank extends savings/current accounts, fixed & current deposits along with a host of other schemes.
Recurring Deposit (RD) from Syndicate Bank
The bank offers a standard RD scheme that comes with appealing features and rates. The scheme is open to salaried class, professionals, entrepreneurs etc. looking to mobilise savings over a period of time. A variety of loans can be drawn against the deposit money in the RD account, which makes Syndicate, one of the few institutions to offer this facility.
Features and Benefits of Syndicate Bank Recurring Deposit
- Monthly deposit amount starts at just Rs.100 with no upper limit. Increase in denomination should be made in multiples of Rs.10.
- The term of deposit starts at 12 months with an upper cap of 10 years. This range provides enough space for the depositor to choose a term that suits their investment needs.
- Interest charges are calculated on a quarterly basis credited to the account based on the agreed rates.
- No tax is deducted (TDS) on the interest charges earned in the RD account.
- Option to avail loan for up to 95% of deposit amount under the RD scheme, is available. The loan availability is dependent on the unexpired period of the deposit term.
Interest Rates Offered on Syndicate Bank’s Recurring Deposit
For all deposits below Rs.1 crore, the interest rate is 7% that can go up to 8.50% depending on the period of investment. Refer to the rate card available on the bank’s portal before choosing the right term in order to ensure the best returns for your investment.
- Resident senior citizens are eligible for an additional 0.50% interest on the prevailing rates.
- Current and former employees of the bank are eligible for an additional 1% on the existing rate. There is no cap on the amount for this category of depositors.
Opening a Recurring Deposit Account with Syndicate Bank
An RD account can be opened at the nearest branch of Syndicate bank. Savings/current account holders can easily sign up with minimal documentation on basis of the existing credentials. New depositors will be required to present the following documents to enable activation.
- Recent passport size photograph
- Duly filled form along with introduction (if required)
- ID and address proof
- Contact and PAN details
Penalty on Premature Withdrawal
A penalty amount will be deductible for premature withdrawal that will be communicated at the time of opening the account. Nominal penalty is also applicable for monthly deposits not received within the payment due date.