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Fixed Deposits

What our customers have to say...

Our deposits have been continuously rated AAA for 30 years

Trusted by three generations of depositors

80% of our depositors have stayed with us for atleast 10 years

Fixed Deposits

Make a deposit and earn interest at Monthly/Quarterly (March, June, September, December) intervals.

Methods of Interest Credit:

  • Interest payment through RBI Electronic Clearing Service
  • NEFT
  • Interest payment by way of 'at par' cheques

Fixed Deposits - Interest Rates (effective October 19, 2018)

Senior Citizen** Others
Term (Months) Rate (% p.a at Quarterly rests for FD ) Monthly Interest Rate %p.a(FD) Rate (% p.a at Quarterly rests for FD ) Monthly Interest Rate %p.a(FD)
12 8.25 8.19 7.75 7.70
18 8.25 8.19 7.75 7.70
24 8.50 8.44 8.00 7.95
36 8.50 8.44 8.00 7.95

* Minimum Deposit Rs. 10,000/- per account
* Interest rates on existing deposits remain unchanged till maturity
**Completed age 60 years on the date of Deposit/Renewal

x

What types of Deposits are available?

Cumulative as well as Fixed (Regular Income Scheme) Deposits are available.

What is the difference between a Fixed deposit and a Cumulative deposit?

For Fixed Deposits, the interest is payable on either a monthly or quarterly basis.

For Cumulative Deposits, the interest is payable at the time of maturity together with the principal amount invested.

What is the minimum Deposit accepted by the Company?

The minimum deposit for both the Fixed and Cumulative deposit schemes is Rs.10,000/-.

The amount can be placed by Cheque/ Demand Draft / RTGS / NEFT.

Cheques and Demand Drafts may be issued favouring “Sundaram Finance Limited.

For RTGS and NEFT please contact 044-28521301-04 to ascertain the relevant Bank details.

How may I obtain a Deposits Application Form?

Deposit Application Forms are available at all our Branches or click here

Can a Deposit be placed in the name of a Minor?

Yes. A deposit can be placed in the name of a Minor provided He / She is represented by His / Her Natural or Legal Guardian.

The Deposits Application Form must be signed by the Natural/ Legal Guardian on behalf of the Minor.

All communication in relation to the deposit shall be addressed to the Guardian.

Can a Power of Attorney (POA) holder sign the Deposit Application Form?

Yes, on receipt and verification of the Power Of Attorney by the Company as to its validity in this context.

Are Senior citizens eligible for a higher interest rate?

Yes, Senior citizens are eligible for an additional 0.50% per annum.

Can a joint Deposit account be opened?

Yes, a maximum of three people can open a joint Deposit account payable to A or S (Anyone or Survivor) or N or S (Number One or Survivor).

For A or S deposits, the Deposit receipt can be discharged by anyone of the depositors on maturity. However, all the Depositors` signatures are required for a Premature Payment or Loan.

For N or S deposits, the Deposit receipt must be discharged by the first Depositor.

What happens if the prevailing interest rates goes up or comes down?

There will be no change. The Company will pay the contracted rate till the maturity of the Deposit Receipt as per the current rules.

When is Income Tax deducted at source from interest?

It is mandatory for the Company to deduct Tax at Source if the estimated annual interest paid /credited on the Deposit exceeds Rs.5000/- during the financial year.

However, those Depositors who are not assessed to Income Tax may furnish a self-declaration in Form 15G or 15H (for Senior Citizens) so that tax is not deducted at source.

What is Form 15G and Form 15H and where do I get it from?

Form 15G and Form 15H (for Senior Citizens) are self- declarations given by those Depositors who are not assessed to Income Tax.

These forms may be obtained from our branches or downloaded by clicking here

Form 15G and Form 15H are self-declarations.

Should the Depositor not be able to sign the Form their left-hand thumb impression will suffice.

The left hand thumb impression must be attested by a Gazetted Officer or Bank Official.

What is the difference between Form 15G and Form 15H?

Declaration in Form 15G can be made by an Individual or a person (not a Company or Partnership / Proprietorship Firm).

A Company or Firm cannot submit declaration in Form 15G or Form 15H. Form 15G is for Resident Individuals below 60 years of age. Form 15H is for Resident Individuals who are Senior Citizens i.e. over 60 years of age

Eligibility for 15G/H if in case of individuals:-

Form 15G: The total income during the financial year should not exceed the basic exemption limit as per Income Tax rules i.e. Rs.2, 50,000/-. If the total income during the financial year exceeds or is likely to exceed Rs. 2, 50,000/- Form 15G cannot be submitted.

Form 15H: f the individual is 60 years but less than 80 years of age, then the total income during the financial year should not exceed the basic exemption limit as per income tax i.e. Rs. 3,00,000/-

If the individual is 80 years of age or more, then the total income during the financial year should not exceed the basic exemption limit as per the income tax i.e. Rs.5,00,000/-.

Eligibility for 15G if in case of persons other than Individuals:

15G can be submitted by a HUF, Association of persons, Body of individuals & Artificial Juridical Persons if the total income during the financial year does not exceed the basic exemption limit as per the income tax i.e. Rs.2, 50,000/-.

Will a certificate be issued by the Company for the Tax deducted at source?

For the Tax deducted at source, Tax deduction certificates in the prescribed form 16A, giving details of the interest remitted to Income Tax Department will be sent on a quarterly basis if the interest on the deposit is paid quarterly.

For the Tax deducted at source (TDS) certificate Form 16A will be generated by the Company through the Tax Information Network (TIN) central system.

In case of salaried person, if the Income Tax is deducted at source from salary, can he /she furnish 15G/15H?

No. As salaried persons are also assesses form 15G/15H cannot be furnished.

Can you open more than one account in the same order of names?

No. All deposits held in the same name, or in the same order of names (in case of joint deposits) are required to be clubbed together for the purpose of Income Tax computation.

Is it sufficient to furnish Form 15G / H once at the time of placing the deposit?

No. Since there may be changes in the Income Tax Laws, Form 15G/H MUST be furnished during renewal of every deposit as also whenever an additional deposit is made during the financial year.

Can a depositor, in case of urgent need of money, withdraw their deposits?

As per Reserve Bank of India directions, no withdrawal of deposit is permitted within three months from the date of Deposit/renewal of Deposit.

Can a withdrawal be made from the deposit after 3 months?

Yes. Premature withdrawal can be made after 3 months from the date of deposit/renewal as per the Directions of Reserve Bank of India and the terms and conditions of the Company.

Can premature proceeds be paid favouring the second/third Depositor?

No. Premature payments will be effected favouring the first depositor only.

Can the Company directly credit the Depositor's designated bank account?

Yes. The payment can be sent directly to the Depositor’s designated bank account available in our records.

Will the Company allow loan against the Deposit?

Loan may be granted against the deposit up to 75% of the deposit amount. Loan can be availed for deposits made within three months from the date of Deposit/Renewal.

The Term Deposit Receipt (TDR) will be under lien and retained by the Company.

However, granting of the loan is at the sole discretion of the Company.

No loan will be granted against Non-Resident Deposits.

What is the rate of interest chargeable for loans?

The loan interest will be charged @ 2% per annum above the contracted rate shown on the Term Deposit Receipt (TDR)

Do you accept Non-Resident Indian (NRI) Deposits?

We accept deposits from NRIs on a non-repatriation basis. Deposits by NRIs are accepted only when the funds originate from their respective NRO Account.

NRI depositors must also submit the following declaration:

The amount deposited with Sundaram Finance Ltd. represents amount transferred from NRO account. Further this amount does not represent inward remittance from overseas to NRO account or transfer of fund from NRE/FCNR(B) account to NRO account.

The depositor has to furnish his NRO bank account number, as both the principal and the interest will be credited to the depositor’s NRO bank account. Tax will be deducted at the rates prescribed by the Income Tax rules in force from time to time from the interest amount irrespective of the quantum of interest.

Details of TDS with respect to Non-Resident Deposits

The limit of Rs.5000/-on interest for the purpose of tax is not applicable. Tax rate will be 31.2% as per the current Income Tax rules (Effective 01/04/2018).

Declaration in Form 15G/H for non -deduction of tax at source is not applicable. FATCA (Foreign Account Tax Compliance Act) form must be furnished by the NRI depositor.

The form is available in the Deposit Application Form or downloaded by clicking here

How can I renew the Deposit?

The Renewal Application Form (available at all our Branches) together with the Term Deposit Receipt must be sent to us 15 days prior to the maturity of the Term Deposit Receipt bearing the Depositor’s signature on the reverse.

What are options for Renewal of a Cumulative Deposit Receipt?

An existing depositor can renew their deposit for either the Principal amount (interest accrued will be repaid) or alternatively the principal amount plus interest.

Cumulative Deposits

It is a deposit where the accrued interest is payable on Maturity along with the principal

Cumulative Deposits - Interest Rates: (effective October 19, 2018)

Senior Citizen** Others
Term in Months Cumulative Deposits Effective Yield % p.a Cumulative Deposits Effective Yield % p.a
Maturity Value for Maturity value for
₹10,000 ₹1,000 ₹ 10,000 ₹ 1,000
12 10,850 1,085 8.50 10,800 1,080 8.00
18 11,300 1,130 8.67 11,220 1,122 8.13
24 11,830 1,183 9.15 11,720 1,172 8.60
36 12,870 1,287 9.57 12,680 1,268 8.93

* Minimum Deposit Rs. 10,000/- per account
* Interest rates on existing deposits remain unchanged till maturity
**Completed age 60 years on the date of Deposit/Renewal

x

What types of Deposits are available?

Cumulative as well as Fixed (Regular Income Scheme) Deposits are available.

What is the difference between a Fixed deposit and a Cumulative deposit?

For Fixed Deposits, the interest is payable on either a monthly or quarterly basis.

For Cumulative Deposits, the interest is payable at the time of maturity together with the principal amount invested.

What is the minimum Deposit accepted by the Company?

The minimum deposit for both the Fixed and Cumulative deposit schemes is Rs.10,000/-.

The amount can be placed by Cheque/ Demand Draft / RTGS / NEFT.

Cheques and Demand Drafts may be issued favouring “Sundaram Finance Limited.

For RTGS and NEFT please contact 044-28521301-04 to ascertain the relevant Bank details.

How may I obtain a Deposits Application Form?

Deposit Application Forms are available at all our Branches or click here

Can a Deposit be placed in the name of a Minor?

Yes. A deposit can be placed in the name of a Minor provided He / She is represented by His / Her Natural or Legal Guardian.

The Deposits Application Form must be signed by the Natural/ Legal Guardian on behalf of the Minor.

All communication in relation to the deposit shall be addressed to the Guardian.

Can a Power of Attorney (POA) holder sign the Deposit Application Form?

Yes, on receipt and verification of the Power Of Attorney by the Company as to its validity in this context.

Are Senior citizens eligible for a higher interest rate?

Yes, Senior citizens are eligible for an additional 0.50% per annum.

Can a joint Deposit account be opened?

Yes, a maximum of three people can open a joint Deposit account payable to A or S (Anyone or Survivor) or N or S (Number One or Survivor).

For A or S deposits, the Deposit receipt can be discharged by anyone of the depositors on maturity. However, all the Depositors` signatures are required for a Premature Payment or Loan.

For N or S deposits, the Deposit receipt must be discharged by the first Depositor.

What happens if the prevailing interest rates goes up or comes down?

There will be no change. The Company will pay the contracted rate till the maturity of the Deposit Receipt as per the current rules.

When is Income Tax deducted at source from interest?

It is mandatory for the Company to deduct Tax at Source if the estimated annual interest paid /credited on the Deposit exceeds Rs.5000/- during the financial year.

However, those Depositors who are not assessed to Income Tax may furnish a self-declaration in Form 15G or 15H (for Senior Citizens) so that tax is not deducted at source.

What is Form 15G and Form 15H and where do I get it from?

Form 15G and Form 15H (for Senior Citizens) are self- declarations given by those Depositors who are not assessed to Income Tax.

These forms may be obtained from our branches or downloaded by clicking here

Form 15G and Form 15H are self-declarations.

Should the Depositor not be able to sign the Form their left-hand thumb impression will suffice.

The left hand thumb impression must be attested by a Gazetted Officer or Bank Official.

What is the difference between Form 15G and Form 15H?

Declaration in Form 15G can be made by an Individual or a person (not a Company or Partnership / Proprietorship Firm).

A Company or Firm cannot submit declaration in Form 15G or Form 15H. Form 15G is for Resident Individuals below 60 years of age. Form 15H is for Resident Individuals who are Senior Citizens i.e. over 60 years of age

Eligibility for 15G/H if in case of individuals:-

Form 15G: The total income during the financial year should not exceed the basic exemption limit as per Income Tax rules i.e. Rs.2, 50,000/-. If the total income during the financial year exceeds or is likely to exceed Rs. 2, 50,000/- Form 15G cannot be submitted.

Form 15H: f the individual is 60 years but less than 80 years of age, then the total income during the financial year should not exceed the basic exemption limit as per income tax i.e. Rs. 3,00,000/-

If the individual is 80 years of age or more, then the total income during the financial year should not exceed the basic exemption limit as per the income tax i.e. Rs.5,00,000/-.

Eligibility for 15G if in case of persons other than Individuals:

15G can be submitted by a HUF, Association of persons, Body of individuals & Artificial Juridical Persons if the total income during the financial year does not exceed the basic exemption limit as per the income tax i.e. Rs.2, 50,000/-.

Will a certificate be issued by the Company for the Tax deducted at source?

For the Tax deducted at source, Tax deduction certificates in the prescribed form 16A, giving details of the interest remitted to Income Tax Department will be sent on a quarterly basis if the interest on the deposit is paid quarterly.

For the Tax deducted at source (TDS) certificate Form 16A will be generated by the Company through the Tax Information Network (TIN) central system.

In case of salaried person, if the Income Tax is deducted at source from salary, can he /she furnish 15G/15H?

No. As salaried persons are also assesses form 15G/15H cannot be furnished.

Can you open more than one account in the same order of names?

No. All deposits held in the same name, or in the same order of names (in case of joint deposits) are required to be clubbed together for the purpose of Income Tax computation.

Is it sufficient to furnish Form 15G / H once at the time of placing the deposit?

No. Since there may be changes in the Income Tax Laws, Form 15G/H MUST be furnished during renewal of every deposit as also whenever an additional deposit is made during the financial year.

Can a depositor, in case of urgent need of money, withdraw their deposits?

As per Reserve Bank of India directions, no withdrawal of deposit is permitted within three months from the date of Deposit/renewal of Deposit.

Can a withdrawal be made from the deposit after 3 months?

Yes. Premature withdrawal can be made after 3 months from the date of deposit/renewal as per the Directions of Reserve Bank of India and the terms and conditions of the Company.

Can premature proceeds be paid favouring the second/third Depositor?

No. Premature payments will be effected favouring the first depositor only.

Can the Company directly credit the Depositor's designated bank account?

Yes. The payment can be sent directly to the Depositor’s designated bank account available in our records.

Will the Company allow loan against the Deposit?

Loan may be granted against the deposit up to 75% of the deposit amount. Loan can be availed for deposits made within three months from the date of Deposit/Renewal.

The Term Deposit Receipt (TDR) will be under lien and retained by the Company.

However, granting of the loan is at the sole discretion of the Company.

No loan will be granted against Non-Resident Deposits.

What is the rate of interest chargeable for loans?

The loan interest will be charged @ 2% per annum above the contracted rate shown on the Term Deposit Receipt (TDR)

Do you accept Non-Resident Indian (NRI) Deposits?

We accept deposits from NRIs on a non-repatriation basis. Deposits by NRIs are accepted only when the funds originate from their respective NRO Account.

NRI depositors must also submit the following declaration:

The amount deposited with Sundaram Finance Ltd. represents amount transferred from NRO account. Further this amount does not represent inward remittance from overseas to NRO account or transfer of fund from NRE/FCNR(B) account to NRO account.

The depositor has to furnish his NRO bank account number, as both the principal and the interest will be credited to the depositor’s NRO bank account. Tax will be deducted at the rates prescribed by the Income Tax rules in force from time to time from the interest amount irrespective of the quantum of interest.

Details of TDS with respect to Non-Resident Deposits

The limit of Rs.5000/-on interest for the purpose of tax is not applicable. Tax rate will be 31.2% as per the current Income Tax rules (Effective 01/04/2018).

Declaration in Form 15G/H for non -deduction of tax at source is not applicable. FATCA (Foreign Account Tax Compliance Act) form must be furnished by the NRI depositor.

The form is available in the Deposit Application Form or downloaded by clicking here

How can I renew the Deposit?

The Renewal Application Form (available at all our Branches) together with the Term Deposit Receipt must be sent to us 15 days prior to the maturity of the Term Deposit Receipt bearing the Depositor’s signature on the reverse.

What are options for Renewal of a Cumulative Deposit Receipt?

An existing depositor can renew their deposit for either the Principal amount (interest accrued will be repaid) or alternatively the principal amount plus interest.

NRI Deposits

We accept deposits from NRIs on a non-repatriable basis

Click here to view the terms and conditions governing the NRI deposits

x

What types of Deposits are available?

Cumulative as well as Fixed (Regular Income Scheme) Deposits are available.

What is the difference between a Fixed deposit and a Cumulative deposit?

For Fixed Deposits, the interest is payable on either a monthly or quarterly basis.

For Cumulative Deposits, the interest is payable at the time of maturity together with the principal amount invested.

What is the minimum Deposit accepted by the Company?

The minimum deposit for both the Fixed and Cumulative deposit schemes is Rs.10,000/-.

The amount can be placed by Cheque/ Demand Draft / RTGS / NEFT.

Cheques and Demand Drafts may be issued favouring “Sundaram Finance Limited.

For RTGS and NEFT please contact 044-28521301-04 to ascertain the relevant Bank details.

How may I obtain a Deposits Application Form?

Deposit Application Forms are available at all our Branches or click here

Can a Deposit be placed in the name of a Minor?

Yes. A deposit can be placed in the name of a Minor provided He / She is represented by His / Her Natural or Legal Guardian.

The Deposits Application Form must be signed by the Natural/ Legal Guardian on behalf of the Minor.

All communication in relation to the deposit shall be addressed to the Guardian.

Can a Power of Attorney (POA) holder sign the Deposit Application Form?

Yes, on receipt and verification of the Power Of Attorney by the Company as to its validity in this context.

Are Senior citizens eligible for a higher interest rate?

Yes, Senior citizens are eligible for an additional 0.50% per annum.

Can a joint Deposit account be opened?

Yes, a maximum of three people can open a joint Deposit account payable to A or S (Anyone or Survivor) or N or S (Number One or Survivor).

For A or S deposits, the Deposit receipt can be discharged by anyone of the depositors on maturity. However, all the Depositors` signatures are required for a Premature Payment or Loan.

For N or S deposits, the Deposit receipt must be discharged by the first Depositor.

What happens if the prevailing interest rates goes up or comes down?

There will be no change. The Company will pay the contracted rate till the maturity of the Deposit Receipt as per the current rules.

When is Income Tax deducted at source from interest?

It is mandatory for the Company to deduct Tax at Source if the estimated annual interest paid /credited on the Deposit exceeds Rs.5000/- during the financial year.

However, those Depositors who are not assessed to Income Tax may furnish a self-declaration in Form 15G or 15H (for Senior Citizens) so that tax is not deducted at source.

What is Form 15G and Form 15H and where do I get it from?

Form 15G and Form 15H (for Senior Citizens) are self- declarations given by those Depositors who are not assessed to Income Tax.

These forms may be obtained from our branches or downloaded by clicking here

Form 15G and Form 15H are self-declarations.

Should the Depositor not be able to sign the Form their left-hand thumb impression will suffice.

The left hand thumb impression must be attested by a Gazetted Officer or Bank Official.

What is the difference between Form 15G and Form 15H?

Declaration in Form 15G can be made by an Individual or a person (not a Company or Partnership / Proprietorship Firm).

A Company or Firm cannot submit declaration in Form 15G or Form 15H. Form 15G is for Resident Individuals below 60 years of age. Form 15H is for Resident Individuals who are Senior Citizens i.e. over 60 years of age

Eligibility for 15G/H if in case of individuals:-

Form 15G: The total income during the financial year should not exceed the basic exemption limit as per Income Tax rules i.e. Rs.2, 50,000/-. If the total income during the financial year exceeds or is likely to exceed Rs. 2, 50,000/- Form 15G cannot be submitted.

Form 15H: f the individual is 60 years but less than 80 years of age, then the total income during the financial year should not exceed the basic exemption limit as per income tax i.e. Rs. 3,00,000/-

If the individual is 80 years of age or more, then the total income during the financial year should not exceed the basic exemption limit as per the income tax i.e. Rs.5,00,000/-.

Eligibility for 15G if in case of persons other than Individuals:

15G can be submitted by a HUF, Association of persons, Body of individuals & Artificial Juridical Persons if the total income during the financial year does not exceed the basic exemption limit as per the income tax i.e. Rs.2, 50,000/-.

Will a certificate be issued by the Company for the Tax deducted at source?

For the Tax deducted at source, Tax deduction certificates in the prescribed form 16A, giving details of the interest remitted to Income Tax Department will be sent on a quarterly basis if the interest on the deposit is paid quarterly.

For the Tax deducted at source (TDS) certificate Form 16A will be generated by the Company through the Tax Information Network (TIN) central system.

In case of salaried person, if the Income Tax is deducted at source from salary, can he /she furnish 15G/15H?

No. As salaried persons are also assesses form 15G/15H cannot be furnished.

Can you open more than one account in the same order of names?

No. All deposits held in the same name, or in the same order of names (in case of joint deposits) are required to be clubbed together for the purpose of Income Tax computation.

Is it sufficient to furnish Form 15G / H once at the time of placing the deposit?

No. Since there may be changes in the Income Tax Laws, Form 15G/H MUST be furnished during renewal of every deposit as also whenever an additional deposit is made during the financial year.

Can a depositor, in case of urgent need of money, withdraw their deposits?

As per Reserve Bank of India directions, no withdrawal of deposit is permitted within three months from the date of Deposit/renewal of Deposit.

Can a withdrawal be made from the deposit after 3 months?

Yes. Premature withdrawal can be made after 3 months from the date of deposit/renewal as per the Directions of Reserve Bank of India and the terms and conditions of the Company.

Can premature proceeds be paid favouring the second/third Depositor?

No. Premature payments will be effected favouring the first depositor only.

Can the Company directly credit the Depositor's designated bank account?

Yes. The payment can be sent directly to the Depositor’s designated bank account available in our records.

Will the Company allow loan against the Deposit?

Loan may be granted against the deposit up to 75% of the deposit amount. Loan can be availed for deposits made within three months from the date of Deposit/Renewal.

The Term Deposit Receipt (TDR) will be under lien and retained by the Company.

However, granting of the loan is at the sole discretion of the Company.

No loan will be granted against Non-Resident Deposits.

What is the rate of interest chargeable for loans?

The loan interest will be charged @ 2% per annum above the contracted rate shown on the Term Deposit Receipt (TDR)

Do you accept Non-Resident Indian (NRI) Deposits?

We accept deposits from NRIs on a non-repatriation basis. Deposits by NRIs are accepted only when the funds originate from their respective NRO Account.

NRI depositors must also submit the following declaration:

The amount deposited with Sundaram Finance Ltd. represents amount transferred from NRO account. Further this amount does not represent inward remittance from overseas to NRO account or transfer of fund from NRE/FCNR(B) account to NRO account.

The depositor has to furnish his NRO bank account number, as both the principal and the interest will be credited to the depositor’s NRO bank account. Tax will be deducted at the rates prescribed by the Income Tax rules in force from time to time from the interest amount irrespective of the quantum of interest.

Details of TDS with respect to Non-Resident Deposits

The limit of Rs.5000/-on interest for the purpose of tax is not applicable. Tax rate will be 31.2% as per the current Income Tax rules (Effective 01/04/2018).

Declaration in Form 15G/H for non -deduction of tax at source is not applicable. FATCA (Foreign Account Tax Compliance Act) form must be furnished by the NRI depositor.

The form is available in the Deposit Application Form or downloaded by clicking here

How can I renew the Deposit?

The Renewal Application Form (available at all our Branches) together with the Term Deposit Receipt must be sent to us 15 days prior to the maturity of the Term Deposit Receipt bearing the Depositor’s signature on the reverse.

What are options for Renewal of a Cumulative Deposit Receipt?

An existing depositor can renew their deposit for either the Principal amount (interest accrued will be repaid) or alternatively the principal amount plus interest.

On Maturity

Maturity Intimation letter along with the RENEWAL APPLICATION FORM is sent 15 days in advance of the maturity date.

Renewal of Deposits

The depositor has to surrender the Original Deposit Receipt duly signed along with the renewal form. Deposit can be renewed from the date of maturity only if renewal instructions are received within 2 months from the date of maturity. Otherwise, the same will be renewed prospectively. Renewal with loan is not possible. The loan must be adjusted against the deposit value on the date of maturity.

Maturity Payment

In case of repayment, the depositor has to sign on the reverse of TDR affixing a Revenue stamp with Instructions for repayment along with a copy of the cheque leaf consisting of Bank Account details.

Maturity Options

On maturity, the depositor can opt for:

  • Payment of maturity amount
  • Renewal of maturity amount
  • Renewal for multiples of Rs 1000/- (subject to a minimum balance of Rs. 10,000/- in the deposit account). Eg; Rs 10,720 can be rounded up to Rs 11,000 or rounded down to Rs 10,000.

Discharge Of Deposit Receipt

Scenario Anyone or Survivor A or S Number One or Survivor or S
Regular payment on maturity Anyone of the depositors can sign First depositor alone can sign

Nomination

Depositors are permitted to nominate one person (for a Deposit Account) to whom the Company can return the deposit in the event of the Depositor’s death after submitting the relevant documents.

The nomination details are available on page 8 of the Deposits Application Form Depositors may also contact the Company for a Nomination Form should they wish to add a Nominee during the tenure of the Deposit. Click to download

Prematurity Payment & Loans

Discharge of deposit receipt

Scenario Anyone or Survivor A or S Number One or Survivor N or S
Premature payment All depositors have to sign First depositor alone can sign

Premature Payments (PMP) Withdrawal

The company reserves the right to allow, at its absolute discretion, withdrawal of deposits before maturity. Where a deposit is so allowed to be prematurely withdrawn the relative deposit receipt must be discharged by all the depositors in case of A or S/s deposit and by the first named depositor in case of N or S/s deposit.


As per the Directions of RBI currently in force:

PMP before expiry of 3 Months No Payment **
PMP after 3 Months but before 6 Months No Interest *
PMP after 6 Months but before 12 Months 3% lower than the One year rate at the time of deposit
PMP after 12 Months but before 24 Months 2% lower than the One year rate at the time of deposit
PMP after 24 Months but before 36 Months 2% lower than the Two year rate at the time of deposit

** Premature payment can be made without interest in the case of the death of a Depositor
* The above Rates are also applicable for Prematurity payment (PMP) in the case of a death of depositor.

Loan on Deposits

The company may grant, at its sole discretion, loan against a deposit, provided the deposit has run for a minimum period of 3 months up to 75% of the deposit amount, carrying interest @2% above the contracted rate (compounded at the same rate as of the TDR) payable on such deposits. The relative term deposit receipt and loan documents have to be signed by both/all the depositors in case of A or S/s accounts and by the first depositor in case of N or S/s accounts. Cheque/DD for loans will be drawn only in favour of the first depositor.

Maturity payment after adjustment of loan principal and loan interest will be made on maturity, if renewal instructions for the balance amount (subject to a minimum of Rs. 10,000) are not received within one week in advance of the maturity.

x

What types of Deposits are available?

Cumulative as well as Fixed (Regular Income Scheme) Deposits are available.

What is the difference between a Fixed deposit and a Cumulative deposit?

For Fixed Deposits, the interest is payable on either a monthly or quarterly basis.

For Cumulative Deposits, the interest is payable at the time of maturity together with the principal amount invested.

What is the minimum Deposit accepted by the Company?

The minimum deposit for both the Fixed and Cumulative deposit schemes is Rs.10,000/-.

The amount can be placed by Cheque/ Demand Draft / RTGS / NEFT.

Cheques and Demand Drafts may be issued favouring “Sundaram Finance Limited.

For RTGS and NEFT please contact 044-28521301-04 to ascertain the relevant Bank details.

How may I obtain a Deposits Application Form?

Deposit Application Forms are available at all our Branches or click here

Can a Deposit be placed in the name of a Minor?

Yes. A deposit can be placed in the name of a Minor provided He / She is represented by His / Her Natural or Legal Guardian.

The Deposits Application Form must be signed by the Natural/ Legal Guardian on behalf of the Minor.

All communication in relation to the deposit shall be addressed to the Guardian.

Can a Power of Attorney (POA) holder sign the Deposit Application Form?

Yes, on receipt and verification of the Power Of Attorney by the Company as to its validity in this context.

Are Senior citizens eligible for a higher interest rate?

Yes, Senior citizens are eligible for an additional 0.50% per annum.

Can a joint Deposit account be opened?

Yes, a maximum of three people can open a joint Deposit account payable to A or S (Anyone or Survivor) or N or S (Number One or Survivor).

For A or S deposits, the Deposit receipt can be discharged by anyone of the depositors on maturity. However, all the Depositors` signatures are required for a Premature Payment or Loan.

For N or S deposits, the Deposit receipt must be discharged by the first Depositor.

What happens if the prevailing interest rates goes up or comes down?

There will be no change. The Company will pay the contracted rate till the maturity of the Deposit Receipt as per the current rules.

When is Income Tax deducted at source from interest?

It is mandatory for the Company to deduct Tax at Source if the estimated annual interest paid /credited on the Deposit exceeds Rs.5000/- during the financial year.

However, those Depositors who are not assessed to Income Tax may furnish a self-declaration in Form 15G or 15H (for Senior Citizens) so that tax is not deducted at source.

What is Form 15G and Form 15H and where do I get it from?

Form 15G and Form 15H (for Senior Citizens) are self- declarations given by those Depositors who are not assessed to Income Tax.

These forms may be obtained from our branches or downloaded by clicking here

Form 15G and Form 15H are self-declarations.

Should the Depositor not be able to sign the Form their left-hand thumb impression will suffice.

The left hand thumb impression must be attested by a Gazetted Officer or Bank Official.

What is the difference between Form 15G and Form 15H?

Declaration in Form 15G can be made by an Individual or a person (not a Company or Partnership / Proprietorship Firm).

A Company or Firm cannot submit declaration in Form 15G or Form 15H. Form 15G is for Resident Individuals below 60 years of age. Form 15H is for Resident Individuals who are Senior Citizens i.e. over 60 years of age

Eligibility for 15G/H if in case of individuals:-

Form 15G: The total income during the financial year should not exceed the basic exemption limit as per Income Tax rules i.e. Rs.2, 50,000/-. If the total income during the financial year exceeds or is likely to exceed Rs. 2, 50,000/- Form 15G cannot be submitted.

Form 15H: f the individual is 60 years but less than 80 years of age, then the total income during the financial year should not exceed the basic exemption limit as per income tax i.e. Rs. 3,00,000/-

If the individual is 80 years of age or more, then the total income during the financial year should not exceed the basic exemption limit as per the income tax i.e. Rs.5,00,000/-.

Eligibility for 15G if in case of persons other than Individuals:

15G can be submitted by a HUF, Association of persons, Body of individuals & Artificial Juridical Persons if the total income during the financial year does not exceed the basic exemption limit as per the income tax i.e. Rs.2, 50,000/-.

Will a certificate be issued by the Company for the Tax deducted at source?

For the Tax deducted at source, Tax deduction certificates in the prescribed form 16A, giving details of the interest remitted to Income Tax Department will be sent on a quarterly basis if the interest on the deposit is paid quarterly.

For the Tax deducted at source (TDS) certificate Form 16A will be generated by the Company through the Tax Information Network (TIN) central system.

In case of salaried person, if the Income Tax is deducted at source from salary, can he /she furnish 15G/15H?

No. As salaried persons are also assesses form 15G/15H cannot be furnished.

Can you open more than one account in the same order of names?

No. All deposits held in the same name, or in the same order of names (in case of joint deposits) are required to be clubbed together for the purpose of Income Tax computation.

Is it sufficient to furnish Form 15G / H once at the time of placing the deposit?

No. Since there may be changes in the Income Tax Laws, Form 15G/H MUST be furnished during renewal of every deposit as also whenever an additional deposit is made during the financial year.

Can a depositor, in case of urgent need of money, withdraw their deposits?

As per Reserve Bank of India directions, no withdrawal of deposit is permitted within three months from the date of Deposit/renewal of Deposit.

Can a withdrawal be made from the deposit after 3 months?

Yes. Premature withdrawal can be made after 3 months from the date of deposit/renewal as per the Directions of Reserve Bank of India and the terms and conditions of the Company.

Can premature proceeds be paid favouring the second/third Depositor?

No. Premature payments will be effected favouring the first depositor only.

Can the Company directly credit the Depositor's designated bank account?

Yes. The payment can be sent directly to the Depositor’s designated bank account available in our records.

Will the Company allow loan against the Deposit?

Loan may be granted against the deposit up to 75% of the deposit amount. Loan can be availed for deposits made within three months from the date of Deposit/Renewal.

The Term Deposit Receipt (TDR) will be under lien and retained by the Company.

However, granting of the loan is at the sole discretion of the Company.

No loan will be granted against Non-Resident Deposits.

What is the rate of interest chargeable for loans?

The loan interest will be charged @ 2% per annum above the contracted rate shown on the Term Deposit Receipt (TDR)

Do you accept Non-Resident Indian (NRI) Deposits?

We accept deposits from NRIs on a non-repatriation basis. Deposits by NRIs are accepted only when the funds originate from their respective NRO Account.

NRI depositors must also submit the following declaration:

The amount deposited with Sundaram Finance Ltd. represents amount transferred from NRO account. Further this amount does not represent inward remittance from overseas to NRO account or transfer of fund from NRE/FCNR(B) account to NRO account.

The depositor has to furnish his NRO bank account number, as both the principal and the interest will be credited to the depositor’s NRO bank account. Tax will be deducted at the rates prescribed by the Income Tax rules in force from time to time from the interest amount irrespective of the quantum of interest.

Details of TDS with respect to Non-Resident Deposits

The limit of Rs.5000/-on interest for the purpose of tax is not applicable. Tax rate will be 31.2% as per the current Income Tax rules (Effective 01/04/2018).

Declaration in Form 15G/H for non -deduction of tax at source is not applicable. FATCA (Foreign Account Tax Compliance Act) form must be furnished by the NRI depositor.

The form is available in the Deposit Application Form or downloaded by clicking here

How can I renew the Deposit?

The Renewal Application Form (available at all our Branches) together with the Term Deposit Receipt must be sent to us 15 days prior to the maturity of the Term Deposit Receipt bearing the Depositor’s signature on the reverse.

What are options for Renewal of a Cumulative Deposit Receipt?

An existing depositor can renew their deposit for either the Principal amount (interest accrued will be repaid) or alternatively the principal amount plus interest.

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