Term Deposit Scheme
 

The term deposits are opened for a given fixed period and account holder has to specifically provide the instructions to the bank for the period of deposits. Every term deposit will have a maturity date and as per maturity date the deposit will be due for payment. New Kabul bank also introduced the term deposits scheme for customers. Bank has introduced two types of deposit schemes viz. Fixed deposit schemes and Margin money deposit scheme. The customer has to provide the necessary informations as per KYC norms and has to submit the relevant documents and proof as stated above for KYC norms. Other features are as under:

  • Fixed deposit can be opened by individual, joint individuals, Firms, Companies, Club, Association, Institute, Organisations. Margin money deposit is opened in lieu of issuance of Letter of Guarantee and Letter of Credit facilities given to the customers. The margin money deposit is marked lien till the LG or/and LC are reversed.
  • The customer has to filled in the prescribe application form and should be duly filled in all respect.
  • Minimum amount for opening the Fixed deposit is USD 1000 or equivalent. For Margin money deposit scheme no minimum amount is fixed.
  • The duration of deposit will be specified by customer. Minimum period for Fixed Deposit is 3 months and for Margin money deposit no minimum period is specified. Presently no maximum period is specified for both types of deposits.
  • Interest on Fixed Deposit is paid on maturity at the rate of 6%. No interest is paid on Margin money deposits. Any revision in the rate of interest will be applicable for new deposits. Bank pays 1% less interest if deposit is withdrawn before due date.
  • If customer requests for premature renewal for extended period then no penalty is charged. The bank provides auto renewal facility and the Fixed deposit can be renewed further along with the interest. For the renewal of deposit the customer need not to filled in the fresh application form.
  • The due dates notice will be issued by bank 10 days before the date of maturity of deposits.
  • The deposit receipts are issued for each deposit. The customer has to submit the issued deposit receipt for the payment of deposits. If customer lost the deposit receipt he has to inform to the bank in writing immediately and has to execute an indemnity in the prescribed format.