- Important Points on Bank Deposits: Here in this post we will discuss some important questions regarding Bank Deposits.
Important Points in Bank Deposits and Banking Matters
- Banks can accept interest-free deposits only in current account.
- Each bank will have to offer a uniform interest rate on savings bank deposits up to Rs.1 lakh.
- A bank may provide differential rates of interest in savings account above Rs 1 lakh.
- Differential rates of interest on term deposits: Differential rates of interest can be paid on single term deposits of Rs.15 lakh and above
- Differential rate of interest on NRE deposits: Banks are permitted to offer differential rates of interest on NRE term deposits as in the case of domestic term deposits of Rs.15 lakh and above.
- Banks can pay interest on savings bank accounts at quarterly or longer rests (not at lesser interval ).
- Interest on savings bank accounts and term deposit by scheduled commercial banks is calculated on a daily product basis.
Donations by Banks
For Profit Making Banks: Profit making banks may make donations during a financial year, aggregating up to one percent of the published profit of the bank for the previous year.
For Loss Making Banks: loss making banks can make donations up to Rs.5 lakh only in a financial year.