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Important features of the CUB TAX SAVER SILVER Deposit

1. Types of term Deposit:
   
   CUBTAX SAVER SILVER Deposit account be opened by

     a)     a person in his/her own name;

b)     two persons in their joint names

*The single holder type deposit receipt shall be issued to an individual for himself or in the capacity of the karta of the Hindu Undivided family.

 *The joint holder type deposit receipt may be issued jointly to two adults or jointly to an adult and a minor, and payable to either of the holders or to the survivor:

 Provided that in the case of joint holder type deposit, the deduction from income under section 80C of the Act shall be available only to the first holder of the deposit.

2. Minimum value of Term Deposit

 Under the scheme term deposits of amount Rs.100 or multiples there of shall be accepted. The depositor should submit his income tax PAN number and photograph along with the application.

3. Encashment on maturity

1. The maturity period of a term deposit receipt of any denomination shall be five years commencing from the date of the receipt.
2. No term deposit shall be encashed before the expiry of five years from the date of its receipt.

 4. Pledging of term deposit

The term deposit shall not be pledged to secure loan or as security too any other asset.

5. Discharge of Deposit Receipts

 All deposits receipts should be surrendered duly discharged for repayment on or after the due date.

6. Payment of Deposit

Payment of deposit amount including interest, if exceeds Rs.20000 or the aggregate amount of deposits held by the customer in his sole name or jointly with others, on the date of payment of any one deposit exceeds Rs.20000, will be made by way of account payee crossed cheque/draft or by way of credit to SB/CA of the depositor(s).

7. Rate of Interest

1. The rate of interest on the term deposit scheme shall be in accordance with the rate fixed by the bank.  It will be the rate prevailing on the date of deposit.
2. The interest is payable either in lump sum at the time of maturity or every quarter or every month in accordance with the regulatory guidelines for payment of interest on term deposits.

8. Income tax

1. Interest on these term deposits shall be liable to tax under the act, on the basis of annual accrual or receipt, depending upon the method of accounting followed by the depositor/assesse.
2. The tax on such interest shall be deducted in accordance with the provisions of section 194A or section 195 of the Income tax Act.  However, the scheme is subject to any change in the regulations by the Govt. of India and Reserve Bank Of India.

9. Transfer of account from one branch to another

1. A term deposit may be transferred from one branch, to any other branch on the depositor making an application, at either of the two branches:
2. Every such application shall be signed by the holders of the term deposit receipt:

 Provided that in the case of joint holder type deposit, the application may be signed by one of the joint holders if the other is dead.

10. Replacement of lost or destroyed term deposit receipts

1. If a term deposit receipt is lost, stolen, destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate receipt to the branch from where the receipt was issued.
2. Every such application shall be accompanied by a statement showing particulars, such as number, amount and date of the receipt, and the circumstance attending such loss, theft, destruction, mutilation or defacement.
3. If the officer in charge of the bank is satisfied of the loss, theft, destruction, applicant furnishing an indemnity bond in the prescribed form with one or more approved sureties or with a bank guarantee.

 Provided that where the face value or the aggregate face value of the certificate or certificates lost, stolen, destroyed, mutilated or defaces is five hundred rupees or less, a duplicate receipt or receipts may be issued on the applicant furnishing an indemnity bond without any such surety or guarantee:

Provided further that where such application is made with respect to a receipt mutilated or defaced, of whatever face value, a duplicate receipt may be issued without any such indemnity bond, surety or guarantee, if the receipt mutilated or defaced is surrendered and the receipt is capable of being identified as the one originally issued.

4. A Duplicate receipt issued under sub-paragraph (3) shall be treated as equivalent to the original receipt for all the purposes of this scheme except that it shall not be encashable at a branch of the bank other than the branch at which such receipt is issued without previous verification.

11. Nomination

1. Subject to the provisions of paragraph 1, the single holder or the joint holders of a term deposit may, by filling in necessary particulars in the prescribed form at the time of making the term deposit, nominate any person who, in the event of death of the single holder or both the joint holders, as the case may be, shall become entitled to the deposit and to the payment due thereon.  If such nomination is not made at the time of making the term deposit, it may be made by the single holder, the joint holders or the surviving joint holder, as the case may be, at any time after the term deposit receipt is issued, but before its maturity, by means of an application in the prescribed form to the officer in charge of the branch of the bank from which the term deposit receipt was issued.
2. No nomination shall be made in respect of a term deposit applied for and held by or on behalf of a minor.

12. Right of nominees

1. In the event of the death of the holder of a term deposit in respect of which a nomination is in force, the nominee or nominees shall be entitled at any time before or after the maturity of the term deposit to encash the term deposit.

2.     For the purpose of sub-paragraph(1), the surviving nominee or nominees shall make an application to the branch manager of the bank, supported by proof of death of the holder and of deceased nominee or nominees, if any.

13. Payment to legal heirs

If a holder of a term deposit dies and there is no nomination in force at the time of his death, manager of the branch of bank from where the term deposit was issued, shall pay the sum due to the deceased, to his legal heirs.

 FLEXI FIX TAX SAVING ENABLER SCHEME

 The maximum permissible deduction u/s 80C of the Income Tax Act including payment of LIC premia, investments in PF/PPF, ELSS etc., together with the newly introduced Tax Saver Deposits of banks is restricted to Rs.100000/- only in a financial year.  Hence it is possible that the tax payer is not in a position to finalise the quantum of Tax Saver Deposits at the initial stages.  For such of these depositors, we offer our Fexi Deposit Scheme where they can deposit sums in multiples of Rs.1000/- and transfer the required amount either to CUB Tax Saver Gold Deposit account or CUB Tax Saver Silver Deposit account by 15^th March and enjoy tax benefits without committing more than required amounts during the early part of the financial year.  While the amount so transferred to Tax Deposits shall earn interest at applicable rates for the period upto 15^th March and at higher Tax Saver Deposits there from, the balance amount in Flexi deposits shall continue to earn interest at contracted rates.  This new scheme is called Flexifix Tax Saving Enabler Scheme.

 Features

 This deposit account can be opened by a person in his/her own name or by two persons in their joint names.

Minimum investment:

The initial minimum amount of deposit to be placed is Rs.1000/-.  The deposit to be placed will be in unit of Rs.1000/- thereafter.  Each unit of Rs.1000/- is called as a ‘cluster’.

Minimum Period:

Minimum period of deposit is 30 days and the maximum period is 60 months.

Rate of Interest:

The rate of interest shall be in accordance with the rate fixed by the bank from time to time.

Withdrawal facility:

If the depositor wishes to withdraw the amount before the date of maturity he/she can withdraw the amount in units of Rs.1000/- each depending upon his/her requirements.  However withdrawal is permitted only after completion of minimum period of 15 days.

Interest payable for withdrawal:

While making such withdrawal the interest will be paid for the amount so withdrawn at the rate as applicable for the period up to which the same remained as deposit.  No penal rate will be charge for such withdrawal.  For the balance amount available after such withdrawal the interest will be paid at the rate as originally contacted. 

Conversion of deposit:

The amount in multiples of Rs.1000/- shall be transferred to CUB TAX SAVER GOLD/SILVER DEPOSIT on proper authorization of the depositor.