State Bank of India or SBI, country's largest bank on basis of its assets, in association with Thomas Cook, offers 'Holidays Savings account' for holiday goers. Under this scheme, investor can save monthly amounts in the form of a recurring deposit (RD) with SBI and avail a vacation package listed under 'Holiday Savings Account' packages on Thomas Cook website. This e-RD account is generated in the name of the account holder as the account from which it is funded, according to SBI's website- sbi.co.in.
Given below are key features of SBI holiday savings account:
Maturity period
The tenor for SBI holiday savings account is fixed at 12 months and the amount is decided by Thomas Cook based on the package chosen by the customer, according to SBI's website.
Interest rates
SBI holiday savings account earns interest as per the prevailing interest rates for the 12 month period. On a recurring deposit of one year but less than two years, SBI currently pays an interest rate of 6.8 per cent. RD account with additional rate of interest for senior citizens are issued if option for "Senior Citizen" is selected by the customer and age of customer is 60 years or above, on the date of creating the recurring deposit, as per date of birth recorded with the bank, according to SBI.
TDS (Tax Deducted at Source)
This e-RD account is subject to TDS (Tax Deducted at Source), which is applicable on the customer information file (CIF) value. The application of TDS may reduce the amount of funds transferred to Thomas Cook at the time of maturity, according to SBI.
Penalty in case of delay of payment
Penalty in case of delay in payment of instalment of RD is Rs 1.50 for every Rs 100, per month.
Premature closure
Premature closure of this e-RD account is allowed and the bank's applicable premature withdrawal penalty is applied. If this e-recurring deposit account is closed prematurely, the proceeds are credited to the account from which the e-RD account was initially funded.
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