Loan facility is available against the security of the deposit. Deposit receipt can be kept in Bank's safe custody. Provision for automatic renewal is available on maturity. Special term deposit accounts All conditions detailed above for Term deposits for Special Term Deposits. These 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. Net 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. On maturity a round sum viz Rs. Excellent for long term deposits.