PERSONAL BANKING: NEW PRODUCT: SAVINGS PLUS ACCOUNT 
 

SAVINGS PLUS ACCOUNT

AUTOMATIC INVESTMENTS IN TDRs/STDRs ON AN ON-GOING BASIS

SALIENT FEATURES: 
 

Eligibility: Individuals including minors aged 10 years and above and NRIs in single or joint names. 
 

Purpose: To provide an automatic facility to high networth Savings Bank customers for their excess funds in Savings Bank account to be invested in term deposits on an on-going basis. 
 

Terms and Conditions: The customer would be required to open a Savings Plus Account (either a new account or redesignating an existing S.B. account) with a minimum balance of Rs.5,000/-.  The normal Savings Bank account opening form will be used. 
 

Should the Savings Plus Account balance fall below Rs.5,000/- on any day in a month, a service charge of Rs.55/- for the month would be levied.   
 

The customer has to choose a threshold amount beyond which the system would create the fixed deposits.  This threshold amount would necessarily have to exceed Rs.5,000/-.  This is the normal amount, which he has to maintain in his saving plus account on regular basis. 
 

The fixed deposits would be created for a minimum amount of Rs.10,000 and thereafter in multiple in Rs.1,000 and will give the customer the facility of unitized break-up.  
 

The customer can draw on the deposits conveniently by merely issuing a cheque on the Savings Plus Account.  While he/she may specify the specific Fixed Deposit created under this scheme from which the drawal is to be made, in the absence of any such specific instructions the Bank would follow the principle of 'Last in first out' i.e. break the latest fixed deposit (in multiples of Rs.1000/-) by an amount adequate for payment of the cheque. 
 

TDRs/STDRs will be automatically opened for a minimum amount of Rs.10,000 (and in multiple of Rs.1,000 thereafter)  at any one instant. That is, they will be opened for Rs.11,000, Rs.12,000, Rs.13,000 and so on depending on availability of funds over the chosen pre-fixed threshold limit. 
 

All TDRs/STDRs will be opened for maturities of 6, 12, 24 and 36 months only.  The customer will have to opt for any one maturity for the TDR/STDRs or else, the deposits will be opened for 6 months by default.  He/she would, however, have the opinion of changing the maturity period for future TDR/STDRs.  Unless indicated otherwise by the account holders, all terms deposits will be automatically rolled over maturity for the same period at the rate of interest applicable on the material date. 
 

The interest/maturity proceeds of terms deposits will be credited to the  Savings plus account only. 
 

The customer would be mailed an advice every time a TDR/ STDR is created through the autosweep provision, giving complete details of the deposits.  This advice would be generated automatically by the system. There is no need for issuing a separate TDR/STDR.  
 

For savings plus account, the usual saving bank passbook would be issued.

                                   

                                    Based on the customer's authorization, autosweep facility would be operative  at intervals as below, depending  on the balance available in the Saving Plus Account-

a) Once a week, on any chosen day, e.g. Monday or Tuesday or.……etc, as at the end of that day. 

OR

b) Once a month, on any chosen date, e.g. 1^st or 2^nd or 3^rd or …….etc, as at the end of that date.  
 

The customer would be free to change both the threshold balance as well as maturity period of TDRs/STDRs at any time.  A nominal charge of Rs.65/- would apply in each such instance except where the threshold balance (minimum required over the minimum balance requirement for creation of TDR/STDR)  is Rs.25,000/- or more.  
 

                                    Since M.O.D. products are not available for senior citizens/Staff senior citizens, M.O.D. created under Saving Plus Account will also not be available for senior citizens/Staff senior citizens.  
 

Rate of Interest: Interest on balances in savings plus accounts will be the same as applicable to Savings Bank Accounts and will be calculated and applied in the same manner.  Interest paid on TDRs/STDRs created through the autosweep facility will be as per the published interest rates for TDRs/STDRs for the various maturities. The rate of interest for the TDRs/STDRs is picked up from a master file maintained in the system. It is, therefore of critical importance that this interest rate master file be kept upto date at all points of time.   
 

Interest on pre-mature withdrawals (sweep out) on the fixed deposit would be subject to the Bank's rules for pre mature withdrawal of term deposits.

TDS rules will also apply on the interest paid on such fixed deposits created under this product. 
 

Authorised Branches:  All Branches. 
 

Loan facility: An overdraft or a demand loan facility is not available against the TDRs/STDRs created under the autosweep facility. 
 
 

The minimum balance and threshold limit for Savings Plus Accounts are as under:-

                                                      (Amt. in Rs.)