Star Flexi Recurring Deposit offers flexibility to invest surplus fund
Star Flexi Recurring Deposit scheme is a unique Recurring Deposit scheme which offers flexibility to the customer to choose core installment and to also choose monthly flexi installments in multiples of the core installment.
Individuals & Joint Accounts (Including Minors)
Minimum Core Monthly installment amount
Rs.500/- and in its multiples - In respect of Metro and Urban branches
Rs.100/- and in its multiples - In respect of Rural and Semi-Urban branches
Minimum amount of Monthly Installments
No Upper Limit
Any amount in multiples of core monthly installment initially opted at the time of opening of account
Maximum Flexi installment can be any number of times of the core monthly installment.
Minimum 12 months & Maximum 10 years. (In multiples of 3 months only)
Core Installments (Fixed Rate)
As applicable for the period for which the A/c is opened.
Applicable rate at the time of deposit of the Flexible installment
* For e.g. A customer opens a Flexi RD account on 01/06/2014 for 5 years with Core installment of Rs.1000/-. Customer will get interest @ 9.05% (then prevailing card rate) for Core portion of Rs.1,000/- for 5 yrs
If on 01/08/2014, customer deposits Rs.5,000 in his account, then for flexi portion of Rs.4,000/-, he would get Interest for 4 yrs and 9 months at the rate prevalent on 1-08-2014. Thus, there would be multi rates of interest in the A/c.
As per applicable rules for delay / non-receipt of core installments.
No fixed Maturity Value
Other terms and conditions
No advance core installments. Amount deposited above core installments will be considered as Flexi installments for that month provided that such Flexi Installments are in multiples of core installment.
Standing Instructions will be accepted only for the core installments.
Core Installment would be a fixed amount, to be decided at the time of opening the RD A/c. It cannot vary subsequently.
Core installment would have to be paid every month, to avoid penalty.
Core Installments cannot be paid in advance.
Flexi installment would be in multiples of core installments chosen at the time of opening of Flexi RD A/C and can be deposited only once in a month.
Flexi installment can be maximum of any number of times of the core installment.
There would be only one maturity date for both core and flexi portions.
Flexi installment and the core installment need not be deposited together. They can be paid on different dates in the same month.
Standing instructions can be accepted only for the Core installment. No standing instruction would be accepted for Flexi installments.
No Flexi installment would be accepted in the last month of the RD A/c. (i.e. if a RD A/c is opened for 36 months, Flexi installment can be accepted from the 1st to the 35th month only).
No Passbooks will be issued for Flexi RD Accounts. Only system-generated statements are to be issued to the customers.
No auto-renewal of the maturity proceeds permitted. Instead, the proceeds may be credited to SB A/c. if no other instructions are received.
In case there are any core installments in arrears, any extra amount deposited by the customer, would first go to adjust the defaulted core installments. Previously paid flexi installments cannot be adjusted towards future core installments.
Normal penalty rules would apply for delayed credits of the core installments. No penalty would however, apply for non-payment of flexi installments, as these are purely optional. Present penalty rules are as under for the core installments:
Rs.1.50 per Rs.100/- p.m. for deposits of 5 years and less;
Rs.2.00 per Rs.100/- p.m. for deposits of over 5 years.
In the case of premature closure of a Flexi RD A/c, no interest would be payable on the core & Flexi installments, if the A/c is closed within 3 months of opening the same. If the A/c is closed after 3 months, but before maturity, normal penalty rules for premature closure would apply (i.e. compound interest at the reduced rate for the completed quarters and simple interest at the reduced rate for the last broken quarter, for the respective deposits).