Looking to earn some extra money through fixed deposit but also want flexibility in case of your sudden cash requirements? This new scheme introduced by Paytm Payments Banks Limited (PPBL) could be a good option for you. The scheme allows customers to open an FD account with a sum as low as Rs 100 and comes with the flexibility of midterm termination without any penalty. PPBL has partnered with IndusInd Bank to provide its customers with the option of opening an FD account online. As per the Reserve Bank of India’s guidelines, the aggregate customer balance limit for PPBL customers at the end of the day cannot exceed Rs 2 lakh.
Here are some of the detailed features of this new scheme.
– The maturity period of the FD under this scheme will be 356 days after which the scheme will be auto renewed. Just in case, you want to withdraw from your FD before the maturity period, you will be able to do it without any penalty.
– An interest rate of 6 per cent will be provided upon maturity. This is more than the normal FD interest rates offered by India’s public sector bank State Bank of India.
– Customers will not be eligible for any interest if they choose to prematurely close the FD before the minimum period of 7 days.
– The scheme allows you to redeem your FD at any time during the period. After which the principal amount along with the interest, minus the Tax Deduction at Source (TDS) will be paid to your account instantly.
– TDS, if applicable, will be deducted from the interest amount earned as per Income Tax rules. Additionally, non-furnishing of PAN would result in higher TDS deductions.
– In case of auto-renewal of the FD, the new deposit amount will include the previous principal amount plus the interest after the TDS deduction
– On renewal day if the customer has become a senior citizen or will become a senior citizen, the bank will auto-renew the FD (Principal + Interest) under the senior citizen scheme instead of the previous scheme it was booked under. Senior citizens will be offered 0.5% extra interest.
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