Uttar Bihar Gramin Bank MONEY MULTIPLIER DEPOSIT CERTIFICATE

Want your money to work harder without locking yourself into complicated terms? The Uttar Bihar Gramin Bank (UBGB) Money Multiplier Deposit Certificate gives you the predictability of a fixed deposit with flexible tenures, quarterly compounding, and the option to borrow against your deposit when you need liquidity. Here’s a clear, jargon-free guide to help you decide if it fits your goals.

What is the Money Multiplier Deposit Certificate?

Think of it as a fixed deposit designed to “multiply” your principal through quarterly compounding. You invest a lump sum once, choose a tenure that suits your plans, and let the interest compound until maturity. Because the interest is added back to the principal every quarter, your deposit grows faster than with simple interest. It works well for short-, medium-, and long-term goals—anything from a six-month parking of funds to a multi-year savings plan.

Who can open it (Eligibility)

The scheme supports a wide range of customers and entities:

• Individuals (single) and joint holders (up to four)
• Minors aged 10+ and guardians on behalf of minors
• HUFs, partnerships, private companies
• Associations, societies, and schools
  In short, most common personal and institutional profiles are covered, making it easy to align the product with family or organizational needs.

How much can you invest?

• Minimum deposit: ₹1,000
• Maximum deposit: No upper limit
  This makes it friendly for first-time investors who want to start small, as well as for savers with larger surplus funds looking for steady, low-risk growth.

Tenure options (choose what fits your goal)

Pick any tenure from 6 months to 120 months (10 years).

• Short tenures help when you need money back soon (e.g., upcoming fees, tax payments).
• Longer tenures let compounding work harder, typically delivering a higher maturity amount for the same principal.

Interest rates and extra benefits

• Interest rates: As rates can change, check with your branch for the current Money Multiplier rate applicable to your chosen tenure.
• Additional interest for specific categories:
  • Senior citizens: +0.5% over the applicable rate
  • Staff / former staff / staff’s widow or widower / former-staff senior citizens: +1.5% over the applicable rate
    Make sure your category benefit is recorded at the time of opening so you receive the correct rate through your tenure.

How interest is paid (and compounded)

• Compounding frequency: Quarterly. Interest is added back to your principal every quarter, which then earns interest in the next quarter.
• Payout: Typically on maturity, so you get the full benefit of compounding. If you prefer periodic interest payouts, ask the branch about alternatives before opening.

TDS and taxation

• TDS on interest: Applicable as per rules. The bank may deduct TDS if your interest crosses the prescribed threshold or if your PAN/Form 15G/15H status requires it.
• Form 15G/15H: If eligible, submit annually (ideally before April 15) with your signature and deposit details to help the bank process your TDS status correctly.
  Remember, TDS handling and tax liability are not the same thing—interest is generally taxable as per your income-tax slab. Consult your tax advisor for your specific situation.

Nomination

• Nomination is available for individual and joint deposits.
• Not available for minor accounts. If the deposit is in a minor’s name, plan to update arrangements when the minor attains majority.
  Adding a nominee is quick and prevents avoidable paperwork for your family later.

Liquidity without breaking your deposit (Loan facility)

Life is unpredictable. Instead of prematurely closing your deposit, you can borrow up to 90% of the deposit value (subject to bank approval and policy). This helps you meet short-term cash needs while the deposit continues to earn interest, preserving your long-term plan.

Premature closure and penalties

• No penalty for premature closure before maturity per the scheme note.
• Important exception: For deposits above ₹2 lakh, a 1% reduction in the applicable interest rate is applied if you close before maturity.
  If you think you may need funds earlier, consider choosing a shorter tenure or keeping multiple smaller deposits with staggered maturities for added flexibility.

Renewal on autopilot

If you don’t leave specific instructions at maturity, the deposit will be renewed for the same original tenure at the prevailing rate on the date of renewal. This is convenient if you want to stay invested, but always review rates and your cash needs near maturity so you can switch tenure or redeem if needed.

When the Money Multiplier makes the most sense

• Goal-based saving with a clear date: Fees due in 18 months, a wedding fund in three years, a vehicle purchase in two years—pick a tenure to match.
• Rainy-day reserves you won’t touch: Let compounding quietly build your cushion.
• Senior citizens and eligible staff categories: Benefit from extra interest while keeping risk low.
• Institutions and organizations: Park surplus funds for predictable returns with simple documentation and nomination where applicable.

How to open—quick checklist

1. Decide the amount and tenure that suit your goal.
2. Confirm today’s rate and any additional interest eligibility with your branch.
3. Complete KYC and the application form (PAN or Form 60/61, address/ID proofs, photographs).
4. Add a nominee (if eligible).
5. Note your maturity date and set a reminder a few weeks before it arrives to review renewal vs. withdrawal.

Smart tips to maximize returns

• Match tenure to your goal so you don’t need to break the deposit early.
• Consider laddering: Split a large amount into multiple certificates with different maturities for better liquidity.
• Track rate changes: If rates rise later, you can open a new deposit at the higher rate for fresh funds.
• Keep paperwork tidy: Renewal instructions, nominee updates, and TDS forms (15G/15H when eligible) should be handled annually to avoid last-minute hassles.

Bottom line: UBGB’s Money Multiplier Deposit Certificate gives you flexible tenures, quarterly compounding, a loan-against-deposit option for emergencies, and clear rules around nomination, TDS, and renewal. If you want steady, low-maintenance growth with the ability to access funds when life happens, this is a practical, confidence-building way to grow your savings. For the latest rates and documentation, visit your nearest UBGB branch and get started in minutes.