Corporation FD - Scheme, Eligibility, Documents

Corporation Bank is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between 7 days to 10 years. Apart from that, Corporation Bank FD offers regular returns on fixed deposits ranging between 3.00% to 5.60%. For senior citizens, the interest rates on fixed deposits range between 3.50% to 6.10%. In addition to that, Corporation Bank fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

Different type of Corporation Bank term deposit products offered to the investors are listed as follows:

Description:

• A regular income scheme in which interest will be paid at regular intervals i.e. monthly, quarterly, half yearly or yearly at the option of the depositor.
• Loan facility upto 90 per cent is available on the deposit while 75 per cent to the third party deposit
• Nomination facility available
• Flexibility to choose interest payment frequency as per your convenience

Eligibility:

• Resident Indians and hindu undivided family

Description:

• A deposit scheme which allows withdrawal of part of the deposit in units of Rs. 1,000 as per the convenience without prematurely closing the entire deposit account.
• Loan facility upto 90 per cent is available on the deposit while 75 per cent to the third party deposit
• Nomination facility available
• Interest is payable at quarterly intervals till maturity
• Part withdrawal is allowed on this deposit without prematurely closing of your entire fixed deposit account

Eligibility:

• Associations, clubs, educational organisations, societies, companies and hindu undivided family

Description:

• A hassle free flexi tax saver deposit scheme with a benefit of personal accident insurance cover.
• Free personal accident insurance cover of Rs. 1.00 lakh for one year
• Nomination facility available
• Tax benefits on deposit under section 80C of Income Tax Act, 1961
• Free passbook will be provided to the depositor mentioning maturity value and rate of interest on it
• A depositor must have PAN to avail benefit under this scheme

Eligibility:

• Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

Description:

• This deposit scheme allows the depositor to link fixed deposit account to their savings account giving you the higher rate of interest.
• Loan facility upto 90 per cent is available on the deposit while 75 per cent to the third party deposit
• Nomination facility available
• Interest will be compounded on a quarterly basis

Eligibility:

• Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

Corporation Bank fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are mentioned below:

• Guaranteed returns: The best thing about Corporation Bank FD is that it offers guaranteed and assured returns to the investors. The return offered on a fixed deposits is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, Corporation Bank offers FD rates up to 5.60%. The interest rates offered on Corporation Bank FD is not only assured but also way higher than a savings account.
• Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, Corporation Bank term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
• Loan against FD: The investment made in an FD scheme is not only a reliable investment option but can also act as an asset. This is because Corporation Bank fixed deposit allows one to borrow a secured loan against Corporation Bank FD. Benefits of Loan Against FD of Corporation Bank are as follow:
  • Loan against FD of Corporation Bank offers the loan amount upto 90%-95% of the FD amount.
  • The interest charged on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
  • Loan against FD of the Corporation Banks flexible repayment options.
  • The processing fee of Loan Against FD in the Corporation Bank is nil.
  • It is a hassle-free loan and does not require the depositor to break the FD.
Loan Against Fixed Deposit
• Flexible tenures: Corporation Bank FD offers the investors the flexibility to choose the investment tenure as per their convenience. Corporation Bank offers fixed deposit for a minimum tenure of 7 days up to a maximum tenure of 10 years. Corporation Bank offers different interest rates across FD tenures.
• Flexible investment: Apart from the flexibility of tenure, Corporation Bank fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of Rs. 500 for Rural and Semi Urban Branches and Rs. 1,000 for Urban and Metro Branches. Apart from that, one can invest in the Corporation Bank FD up to a maximum of No Limit.

Though a fixed deposit with Corporation Bank means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

Withdrawing funds prematurely from Corporation Bank will attract an interest rate lowered by below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of Corporation Bank fixed deposits with tenure less than seven days, the bank does not pay any interest.

Corporation Bank FD facility can be availed by the following type of investors:

• Indian Citizens
• Members of HUFs or the Hindu Undivided Family
• Business firms
• Local governing bodies
• Government departments
• Employees of private limited companies
• Trust accounts

Corporation Bank fixed deposit requires one to submit the following documents:

• Passport size photographs
• Identity proofs such as Aadhar card, passport, PAN card, and driving license.
• Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
• Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
• Bank account details such as passbook and account number.

Credit Cards againstCorporation Bank FD are secured credit cards. They are availed against the amount deposited in the term deposits. They are an ideal option for individuals with low CIBIL score and salary. Below mentioned are the important features of Credit Cards against Corporation Bank FD:

• The limit offered on the credit card depends upon the amount deposited in the fixed deposits. Generally, banks offer around 80% of the deposit amount as the total credit limit on the card.
• Credit Cards against the fixed deposits require minimum documentation.
• The minimum tenure of the term deposits should be 6 months to avail credit card against it.
• Secured Credit cards also offer discounts, cashback and rewards.
• The cardholder continues to earn the same applicable interest rate on FD.

✅What is the loan against FD repayment tenure in Corporation Bank?

Loan against FD is the  facility which allows the investor to avail the loan against the amount deposited in the term deposit. Corporation Bank offers the loan against FD facility to the FD investors with a repayment tenure of up to 10 years.

✅ What is the minimum investment for FDs under Corporation Bank?

Corporation Bank Fixed Deposit is one of the safest investment avenues and it can be availed with a minimum deposit of Rs. 500 for Rural and Semi Urban Branches and Rs. 1,000 for Urban and Metro Branches.

✅ What is the minimum amount for a fixed deposit in Corporation Bank?

The minimum amount required for a fixed deposit investment in Corporation Bank fixed deposit is Rs. 500 for Rural and Semi Urban Branches and Rs. 1,000 for Urban and Metro Branches.

✅ What is the current interest rate on FD in Corporation Bank?

Currently, Corporation Bank offers an interest rate ranging between 3.00% to 5.60% on its fixed deposits.

✅ What is the penalty for early withdrawal in Corporation Bank?

Bank charges penalty on premature withdrawal of fixed deposits. The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

✅ What is the minimum FD tenure for which a fixed Deposit account can be opened in Corporation Bank?

Corporation Bank fixed deposit can be opened with a minimum tenure of 7 days. The tenure of the Corporation Bank fixed deposits ranges from 7 days to 10 years.

✅Can I deposit additional amount in my Corporation Bank FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

✅Who is eligible for opening an FD account in Corporation Bank?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

✅What documents are required to open an FD account in Corporation Bank?

The documents required to open an FD account in Corporation Bank includes KYC documents and Passport size photos.

✅In how many years FD doubled in the Corporation Bank?

The time Corporation Bank fixed deposits will take to double the initial amount will depend upon the rate of interest offered on the FD. You can calculate the maturity amount of the Corporation Bank FD at MyLoanCare by entering the amount you want to deposit and the interest offered on FD.

✅Can an NRI open a Corporation Bank fixed deposit account?

No, Non-Resident Individuals are not allowed to invest in Corporation Bank schemes. It means that they are not eligible to invest in fixed deposits.

✅Is the Corporation Bank safe for FD?

Yes, the Corporation Bank is one of the safest avenues for any investments. Corporation Bank is backed by the Government of India and the returns on any investment including fixed deposits are guaranteed.

✅Is it wise to take a loan against FD from the Corporation Bank?

Yes, opting for a Loan Against FD is an excellent decision. The reasons to take loan from Corporation Bank are:

• It offers the loan upto 90%-95% of the FD amount.
• The interest levied on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
• Loan against FD offers flexible repayment options.
• The processing fee of Loan Against FD is Nil.
• It is a hassle-free loan and requires minimum documentation.
• Loan against FD helps the depositors to avoid the option of premature withdrawal.

However, there might be a chance that the alternative credit option is offering lower rates with better facilities. In that case, individuals must compare and decide on the credit option.