BoB to launch new deposit scheme

The interest payable will be the rate applicable for term deposit of 1 year to less than 2 years as the major portion of the deposit will be paid back each year. The interest rate of 9 per cent per annum will be calculated on monthly products basis.

8220;It is suited for those drawing a regular monthly income, self-employed professionals, housewives, trusts and business entities with annual financial commitments to keep. Most common among them being education fees, insurance premium, society sinking fund or other investments to be made annually. Since expenses like these recur periodically, the intervening months give us sufficient time to plan for it,8221;said a BoB release.

The depositor has the option of increasing or decreasing the monthly instalment during the 13th and 25th month, subject to the minimum amount of Rs 500 per month. The entire amount in the deposit account will be paid along with the interest accumulated on maturity.