A person can open an individual’s term deposit account independently or jointly. Within this program, children within ten years of age and above can also deposit their proof of age on their behalf.
A certain amount may be paid as a penalty for making a premature withdrawal on term deposits by the bank in question. Premature withdrawal on fixed deposits allows the depositor to terminate the FD until the maturity date.
Because banks do not usually withdraw temporary deposits early, the penalty is applied. In total, the fine ranges from 0.5% to 2%. Many banks – like the SBI, ICICI Bank, Kotak Bank, and HDFC Bank – have some terms and conditions for those who wish to withdraw before the expiry of their maturity period before their deposits are completed.
This is also mentioned in some banks, such as the Punjab National Bank under their PNB Sugam Term Deposit Scheme, a premature withdrawing facility with zero penalty charges. Besides, the bank in the public sector does not place any fines on the depositor for the premature withdrawal service, it also encourages partial withdrawal.
Within this program, children within ten years of age and above can also deposit their proof of age on their behalf. Such an account can also be operated by a company or corporate body, a partnership firm or proprietorship firm, a commercial organization, etc.
With a minimum deposit of Rs 10,000 and a limit of Rs 10 lakh, the PNB Sugam Term deposit scheme can be opened. The deposit shall be for a term of 46 to 120 days.
The depositor shall be able to withdraw any amount, subject to a minimum Rs 1000 withdrawal, before the maturity. In an emergency without losing the whole deposit and without losing credit on the remaining deposit in the plan. This can take effect in an emergency. Note that the value of the deposit – the principal amount – is decreased by the bank, but no penalty is applied to the partial withdrawals of the deposit.
The depositor is therefore able to draw interest on a monthly, quarterly, or maturity basis. When the deposit period is six months or longer, the interest will be paid on a compound basis.