Management Co. Ltd. Kotak Securities Ltd.
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Ace Deposit is a composite product, where monthly interest earned on Term Deposit is invested i an equity mutual fund, by way of Systematic Investment Plan through Standing Instructions placed on the savings accounts.
Ace Term Deposit versus a traditional Term Deposit
|Interest earned from Term Deposit, earns returns of an equity fund.||Interest earned from Term Deposit, earns returns at the Term Deposit rate.|
|Earnings from equity fund are tax free (if redeemed after 1 year from the date of investment)||Compounded interest attracts the same tax rate as regular income.|
|Resident Individuals, Hindu Undivided Family, Sole Proprietorship Concern||1) A valid passport or a valid driving license|
|2) An introduction by any other bank or an introduction by an Axis Bank Savings Account holder for the last six months|
|3) A photograph|
|Trusts||1) Copy of the Trust Deed|
|2) Copy of the registration certificate|
|3) Copy of the Resolution of The Trustees|
|4) Authorising the members concerned to open and operate the account|
|5)Photographs of the members operating the account|
|Associations / Clubs||1)Bye-laws of the Association|
|2)Copy of the Resolution by the board authorising the members concerned to open and operate the account|
|3)Photographs of the members operating the account|
|Partnership Firm||1)Partnership Deed|
|2)Letter from partners approving the persons concerned to open and operate the account|
|3) Photographs of the persons operating the account|
|Limited Companies||Business to revert|
|Resident Individuals, Hindu Undivided Family, Sole Proprietorship Concern|
|Associations / Clubs|
|Public or Private Limited Companies:|
You become liable for TDS1 when the aggregate interest you earn for all deposits held in a particular customer ID is greater than Rs. 10,000/- in a financial year.
TDS is deducted every time the Bank pays/re-invests interest during the financial year. TDS is also deducted on unpaid interest accrued at the end of financial year viz. 31st March.
When interest amount is insufficient to recover TDS, the same is recovered from the principal of the deposit.
Yes, in case of reinvestment deposits, the interest reinvested is post TDS recovery. Therefore, the maturity amount for re-investment deposits varies to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.
Yes. If the change or enhancement in your deposit portfolio earns a cumulative interest2 along with that of the earlier portfolio greater than Rs. 10,000/- you will be liable for TDS on your current portfolio.
2If interest on the current portfolio is not sufficient to cover TDS, it will be recovered from the principal.
W.e.f. Aug 09, applicable TDS rates are:
|Tax Rate||Surcharge||Education Cess||TOTAL|
|Resident Individuals & HUF||10%||Nil||Nil||10%|
When your total interest income for the year will not fall within overall taxable limits, you should inform the bank not to deduct TDS on deposits. You can do this by submitting a form as per the provisions of the Income Tax Act. The forms required for different categories have been listed below:
|Category of Account||Form Required|
|Association of Companies||15AA|
Yes, provided the first account holder is a senior citizen.
While opening the account, the customer needs to provide proof of age establishing that he/she is a Senior Citizen. To accomplish this, either of the following can be submitted:
There is no need to create a separate Customer ID to avail of this product. For new Term Deposits, you only have to provide proof of age. In case proof of age is not submitted, the interest earned will be the same as for the Regular Term Deposit.
All subsequent Term Deposit applications need to be accompanied by proof of age. The only exception to this rule is where a customer already has a live Senior Citizen Term Deposit existing at the time of placing the next Term Deposit. The Term Deposit number needs to be mentioned on the Form. In such cases, it will be assumed that proof of age already exists with the Bank.
Through NetBanking, Term Deposit can be booked by any applicant subject to PAN is updated with the Bank for the Primary applicant in which the Term Deposit is getting booked.
In the absence of PAN, following are the implications for customers:
|Maturity Periods||Less than Rs.15 lacs#||Annualised Yield||Rs. 15 Lacs And Above But Below Rs. 1 Crore#||Annualised Yield|
|7 - 14 Days||0.00%||0.00%||6.00%||6.00%|
|15 - 30 Days||5.50%||5.50%||6.25%||6.25%|
|31 - 45 Days||5.75%||5.75%||6.50%||6.50%|
|46 - 90 Days||6.50%||6.50%||7.00%||7.00%|
|91 - 120 Days||7.50%||7.50%||8.25%||8.25%|
|121 - 180 days||7.50%||7.50%||8.25%||8.25%|
|181 Days to 270 Days||8.25%||8.51%||8.50%||8.77%|
|271 Days to less than 1 Year||8.50%||8.77%||8.75%||9.04%|
|365 - 389 Days||9.25%||9.58%||9.25%||9.58%|
|391 Days & above upto and inclusive of 699 Days||9.25%||9.58%||9.25%||9.58%|
|701 Days & above but less than 2 Years||9.25%||9.58%||9.25%||9.58%|
|2 years - 1000 Days||9.00%||9.31%||9.00%||9.31%|
|1002 Days to less than 3 years||9.00%||9.31%||9.00%||9.31%|
|3 years and above but less than 4 years||9.00%||9.31%||9.00%||9.31%|
|4 years and above but less than 5 years||9.00%||9.31%||9.00%||9.31%|
|5 years and above upto and inclusive of 7 years||9.00%||9.31%||9.00%||9.31%|
|7 years and above upto and inclusive of 10 years||9.00%||9.31%||9.00%||9.31%|
|Maturity Period||Rs. 1 Crore & above but below Rs. 5 Crore #||Annualised Yield|
|7 - 14 Days||8.00%||8.00%|
|15 - 30 Days||8.20%||8.20%|
|31 - 45 Days||8.30%||8.30%|
|46 - 90 Days||8.50%||8.50%|
|91 - 120 Days||8.60%||8.60%|
|121 - 180 Days||8.70%||8.70%|
|181 Days to 270 Days||9.00%||9.31%|
|271 Days to less than 12 months||9.00%||9.31%|
|12 months - less than 15 months||9.25%||9.58%|
|15 months - less than 18 months||9.00%||9.31%|
|18 months - less than 2 Years||9.00%||9.31%|
|2 years and above but less than 3 years||9.00%||9.31%|
|3 years and above but less than 4 years||9.00%||9.31%|
|4 years and above but less than 5 years||9.00%||9.31%|
|5 years and above upto and inclusive of 7 years||9.00%||9.31%|
# Simple interest rate
Interest is payable for NRE TD held for 1 year & above.
Kindly note that the above rates are applicable for today only.
|Tenure||Annualized Yield :|
|Post Tax Annualized Yield :|
Taxable @ 30% case #
|Ace Deposit||Term Deposit||Difference||Ace Deposit||Term Deposit||Difference|
|36 months||10.35%||9.57%||0.78%||8.01 %||6.97%||1.03%|
|60 months||10.85%||9.57%||1.28%||8.79%||7.07 %||1.72 %|
|84 months||11.31%||9.57%||1.75%||9.52%||7.17 %||2.35 %|
|120 months||11.93%||9.57%||2.36%||10.49%||7.30 %||3.20 %|
Interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit or the withdrawn amount remained with the bank or at the contracted rate, whichever is lower after deducting applicable penal charge for premature withdrawal as per Terms & Conditions of the bank.
As per Terms & Conditions of Term Deposit Accounts of the Bank, the penal charge on premature closure of term deposits including partial closure has been fixed by the bank as below on term deposits booked/ renewed on or after 1st November, 2012.
|Tenure of Term Deposit||Penalty|
|Less than 181 days||Nil|
|181 days and above||0.50%|
Note: Interest rates are subject to periodic changes. The applicable interest rates will be offered based on the date and time of receipt of the funds by the bank.
*Recurring Deposit Advice will be dispatched to your registered mailing address with the bank within 3 - 4 working days of opening the RD account
Not available for Non Resident Indians / Persons Of Indian Origin
In case of delay in payment of any installment post grace period of 5 days, penal interest at the rate of RD interest rate (contracted rate of interest at the time of booking of the RD) + 2% p.a. or such other rate as may be specified by Bank from time to time, will be charged for the month of delay.
Fraction of a month will be treated as full month for the purpose of calculating such interest.
Even if the payment for the month is honoured, but the standing instruction towards installment recovery has failed, the Bank will recover a standing instruction failure charge from the current / savings bank account as per General Features and Schedule of Charges (GFSC)
The total penal interest chargeable shall be recovered from the total amount of interest payable by the bank and shall be recovered only at the time of maturity or premature closure of the account as the case may be.
In case of premature closure of this deposit within a month, no interest shall be paid and only principal amount will be returned.
On premature withdrawal of RD. The interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit remained with the bank or at the contracted rate, whichever is lower post deducting penal charge of 0.5% on premature withdrawal of deposit
|Penalty on premature withdrawal of FCNR[B] deposits||GBP||EURO||JPY|
*Rates for Senior Citizen category not available for FCNR Deposits.
No interest will be payable for FCNR Deposits staying less than 1 year.
Acceptance of deposits of USD 1 mio and above [or equivalent] is at the discretion of the Bank.
|Features||Regular Term Deposit||ACE Deposit|
|Rupee Cost Averaging|
|Automated SIP Funding|