FAQ(s)

A Co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled Enterprise.

safe and easy way to save your money is with a bank savings account. A bank savings account allows you to deposit money (add money to your account) or withdraw money (remove money from your account) at any time. In return for keeping your money at the bank, the bank pays you money, also known as interest. Interest will be earned on the money you have on deposit at the bank. Since you may deposit or withdraw money each day, the bank will calculate how much money you should receive in interest. You will also receive a periodic statement from the bank listing your deposits, withdrawals, interest, and account balances. Passbook is also given to the depositors.

Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. In a Current Account, a customer can deposit any amount for any number of times. He can also withdraw any amount as many times as customer wants, subject to availability of fund in the account. Current Accounts are meant neither for the purpose of earning interest nor for the purpose of Savings but only for convenience of the business.

A fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of 15 days to ten years, thereby earning a higher rate of interest in return. Investor gets a lump sum (principal + interest) at the maturity of the deposit. Banks fixed deposit scheme is one of the most common savings scheme for an average investor. Fixed deposit also gives a higher rate of interest than a savings bank account. Some of the facilities offered by bank on fixed deposit are overdraft (loan) facility on the amount deposited, premature withdrawal before maturity period (which involves a loss of interest) etc. Bank deposits are fairly safer because banks are subject to under control of the Reserve Bank of India.

Recurring Deposit scheme is meant for investors who want to deposit a fixed amount every month, in order to get a lump sum after one to five years. The scheme, a systematic way for long term savings, is one of the best investment option for the low income groups.

Tax Deducted at Source ( TDS ) is applicable on RDs and on FDs. If interest earned on recurring deposits exceeds Rs. 10,000 a year, TDS at the rate of 10 per cent would be deducted by the bank.Income tax is to be paid on interest earned from a Recurring Deposit at the rate of tax slab of the RD & FD holder. Investors with no taxable income will have to submit Form 15G to avoid TDS on both recurring deposits and fixed deposits. For senior citizens, the requisite form for avoiding TDS is 15H.