All conditions detailed above for Term Deposits apply to Special Term Deposits. This is a scheme in which the interest is reinvested at quarterly intervals and added to the principal deposit amount so that it accumulates and earns more interest till maturity of the deposit. This is a Special Term Deposit for 5 years with built-in insurance cover on the life of the depositor to the extent of 5 times the deposit amount. A very nominal premium will be recovered at the time of repayment. There are reinvestment deposits.
Interest earned on the deposits is added to the principal and compounded at quarterly intervals.
The principal amount together with interest is repaid on maturity of the deposit. Yield on these accounts is distinctly higher because of compounding of interest at quarterly intervals. All conditions detailed above for Special Term deposits apply for Cash Certificate Deposits. Excellent for long term planning. A recurring deposit scheme Fixed sums are deposited every month for a fixed period.