J&K Bank launches Tax Saver Term Deposit Scheme

SRINAGAR / MUMBAI, October 16 "� J&K Bank has launched a Tax Saver Term Deposit Scheme. TSTDS is a long-term investment product that will enable depositors to avail of tax benefits offered by the government and also earn a higher rate of interest than on other term deposit schemes.

The term of the TSTDS deposit can vary from 5-10 years. The minimum amount to be invested is Rs. 1,000, while the maximum amount is Rs. 100,000. The depositor can avail of tax benefits offered under section 88C of the Income Tax Act, 1961, within limits prescribed by the Act.

The current rate of interest applicable is 8 percent annualized for a deposit maturing between 5-10 years. The rate will be 8.25 percent for senior citizens.

Three options are available to the account holder:

a.Interest is earned on a quarterly basis

b.Interest is earned on a monthly basis

c.Interest can be collected at the time of maturity, and is calculated on a compounded basis

Depositors can also avail of any 2 of the following benefits:

a.Eligibility for a credit card that will be valid for the period of the deposit. This is on a minimum deposit of Rs. 25,000

b.A mark-up of 0.25 percentage points in the interest rate earned on any 1 other term deposits maturing between 3 and 5 years. This is on a minimum investment of Rs 50,000 in the TSTDS scheme

c.1 percentage point off on the interest rate on housing, educational or consumer loans. This is on a deposit of Rs 50,000 in the TSTDS scheme

d.Waiver of installation charges for point-of-service machines. This is on a deposit of Rs 50,000 in the TSTDS scheme

Benefits b, c and d must be availed of within 3 months of opting for the TSTDS scheme.

The deposit must be held for at least 5 years. Investors cannot take a loan against the deposit. The account can be held singly or jointly, though in case of a joint account, only he first account holder can avail of the tax benefit.

The Government of India has issued a notification allowing banks to develop term deposit products that can qualify for tax benefits under section 80C of the Income Tax Act, 1961.

The TSTDS is the latest addition to the Bank's portfolio of deposit products. J&K Bank has a variety of products to suit a range of customer requirements. These include fixed and flexible schemes, recurring deposit schemes, super earner schemes, and childcare schemes.

About The Jammu & Kashmir Bank Ltd.

The J&K Bank is a private sector bank established in 1938. Based in Srinagar, the Bank dominates the banking space in Jammu & Kashmir, and has played a vital role in the state through its history. About 60 percent of its 516 branches are located in J&K state, and the rest are spread across the country. The bank is fully computerized, with branches inter-linked, allowing for easy, anywhere, anytime banking. The bank has made profits through most of its history. For the second quarter to September 30, the Bank reported a 53 percent rise in net profit to Rs. 84.02 crore.