The Bank of India offers a unique financial instrument known as the Double Benefit Term Deposit, providing investors with an opportunity for higher yields on their principal. This deposit stands out due to its distinctive feature of compounding interest on a quarterly basis, culminating in a lump sum payout at the end of the agreed-upon period.
- Compounded Quarterly: The Double Benefit Deposit ensures a higher yield by compounding interest on a quarterly basis. This feature distinguishes it from other deposit types that may offer monthly or half-yearly payouts.
- Tenure Flexibility: Investors can opt for a deposit period ranging from a minimum of 6 months to a maximum of 120 months. This flexibility caters to both short-term and medium-term investment objectives.
- KYC Norms: Like other banking products, KYC norms apply to Double Benefit Term Deposits. Proof of residence, proof of identification, and recent photographs are requisite during the account-opening process.
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Types of Accounts:
The Bank of India caters to a diverse range of account holders, including individuals, joint account holders, sole proprietors, partnership firms, illiterate and visually impaired individuals, minors, limited companies, trusts, educational institutions, government bodies, and more.
- Minimum Amount: The minimum deposit amount varies based on the branch location. In metro and urban branches, it is Rs. 10,000, and in rural and semi-urban branches, it is Rs. 5,000. For senior citizens, the minimum amount is reduced to Rs. 5,000.
- Exemptions: Certain exemptions to the minimum amount criteria exist for government-sponsored schemes, margin money, earnest money, and court-ordered deposits.
- Payment at Maturity: Interest is paid at the time of maturity, along with the principal amount. The interest is compounded quarterly.
- Tax Implications: The bank adheres to TDS (Tax Deducted at Source) regulations, and the PAN number is essential for accounts where TDS is applicable.
Depositors have the option to request the withdrawal of their deposits before maturity. The terms and conditions for premature withdrawal align with the directives issued by the Reserve Bank of India.
In conclusion, the Bank of India Double Benefit Term Deposit is a versatile financial instrument catering to a broad spectrum of investors. Its unique features, coupled with the flexibility in tenure and account types, make it a noteworthy option for those seeking a blend of returns and tenure choices in their investment portfolio.