Uttar Bihar Gramin Bank QUARTERLY DEPOSIT SCHEME

If you want guaranteed growth with predictable cash-flows—and you don’t want the stress of tracking markets—the Uttar Bihar Gramin Bank (UBGB) Quarterly Deposit Scheme is a clean, no-nonsense fit. You invest a lump sum once, the bank credits interest every quarter to your linked account, and your principal stays safe until maturity. Here’s a plain-English guide that covers who can apply, how the interest works, and the smart ways to use this scheme for real-life goals.

Who can open it (Eligibility)

• Individuals in single name or joint holders (up to four people) are eligible.
• Minors above 10 years can open an account as per bank/KYC rules (operation typically with guardian oversight).
• This broad eligibility makes it easy for families, couples, or parent-child combinations to align the deposit with shared goals.

How much and how long (Investment & Tenure)

• Minimum deposit: ₹1,000.
• No maximum limit—invest in multiples of ₹1,000 to match your budget.
• Tenure options: from 12 months to 120 months (i.e., 1 to 10 years), in multiples of 3 months.
  Shorter tenures are useful when you anticipate a near-term expense; longer tenures offer stability and reduce the hassle of frequent renewals.

The return you earn (Interest Rates & Extras)

• Your rate is the prevailing UBGB rate applicable to your chosen tenure on the day you invest.
• Additional interest categories:
  • Senior citizens: +0.50% over the applicable rate.
  • Staff, ex-staff, and widows/widowers of staff: +1.00% over the applicable rate.
    Make sure any extra rate you qualify for is clearly printed on your deposit receipt/certificate at the time of opening.

How the quarterly payout works (Interest Credit & Compounding)

• Interest is compounded as per bank rules for your tenure and then paid out quarterly to your designated account.
• You enjoy a predictable cash inflow every quarter to cover routine bills (fees, insurance premiums, utility payments) while keeping your principal intact until maturity.
• Prefer a monthly income instead? UBGB also runs separate monthly interest products; for this scheme, the payout cadence is quarterly by design.

Liquidity without breaking the FD (Loan Against Deposit)

• Need money mid-way? Instead of closing your deposit, you can borrow up to 90% of the deposit value (subject to bank approval and policy).
• This “loan-against-deposit” option gives you temporary liquidity while your deposit continues to work for you.

If plans change (Premature Withdrawal)

• Premature withdrawal is allowed with interest rate reductions as per bank norms.
• For deposits above ₹2,00,000, an additional 1% penalty applies on early closure.
• Practical tip: If there’s even a small chance you’ll need funds early, split a large sum into two or three certificates with staggered maturities. You can redeem one for cash and keep the others running.

TDS and taxation (Know the basics)

• TDS on interest applies as per Income-tax rules. If you’re eligible to submit Form 15G/15H, file it in time each year to manage TDS—but remember, TDS ≠ final tax.
• Interest from bank deposits is generally taxable according to your income slab. Keep the bank’s interest certificates handy for your return.

Nomination (Don’t skip it)

• Nomination facility is available for individual, joint, and ownership accounts; not available for minor accounts.
• Adding a nominee takes minutes and ensures the proceeds pass smoothly to the intended person, reducing paperwork for your family.

Auto-renewal for convenience (Renewal of Deposits)

• If you don’t give renewal instructions, UBGB will automatically renew the deposit for the same duration at the prevailing rate on the renewal date.
• Set a calendar reminder 3–4 weeks before maturity to compare rates and decide whether to renew or redeem.

Who this scheme suits best

• Families who want quarterly inflows to match recurring expenses (tuition, insurance, maintenance).
• Senior citizens who value predictable income along with the extra 0.50% rate.
• Conservative savers parking a bonus, maturity proceeds, or contingency funds with clear timelines.
• Professionals and small business owners who prefer guaranteed returns and clean documentation for accounting.

How to open—quick checklist

1. Choose your tenure (12 to 120 months in 3-month multiples) and decide the amount (₹1,000 minimum; no max).
2. Confirm today’s rate at the branch and check your eligibility for additional interest.
3. Complete KYC & the application form: PAN (or Form 60/61 if PAN unavailable), valid ID/address proof, and photographs as required.
4. Add a nominee—do this at account opening for peace of mind.
5. Link the credit account where quarterly interest will be deposited.
6. Collect your certificate and verify details: tenure, rate (including any extra %), maturity date, and payout instructions.

Smart ways to get more from this deposit

• Ladder large sums: Split a big corpus across multiple deposits opened a few weeks apart for rolling maturities and better flexibility.
• Match inflows to outflows: Estimate your quarterly bills and invest enough to generate that interest amount each quarter.
• Keep an emergency buffer outside the FD: This lowers the odds of premature closure.
• Track dates: Note the quarterly credit dates and the maturity date; set reminders to avoid surprises.
• Review rates at renewal: If rates improve by maturity, you can renew for a fresh term at the newer rate.

Quick answers to common questions

Is there a maximum investment limit?
No. You can invest in multiples of ₹1,000, starting from ₹1,000.

How often is interest paid?
Quarterly, directly to your linked account.

Do senior citizens get extra interest?
Yes, +0.50% over the applicable rate. Staff/ex-staff and eligible widows/widowers get +1.00%.

Can I get a loan without closing the deposit?
Yes. Up to 90% of the deposit amount, subject to bank policy.

What happens if I withdraw early?
You can close prematurely with a reduced effective interest; for deposits above ₹2,00,000, a 1% penalty applies.

Will the deposit renew automatically if I forget?
Yes. In the absence of instructions, it renews for the same duration at the prevailing rate on the renewal date.

Bottom line: UBGB’s Quarterly Deposit Scheme turns a one-time investment into reliable quarterly income while keeping your principal secure until maturity. With broad eligibility, flexible tenures, optional loan-against-deposit, nomination, and straightforward paperwork, it’s a practical, stress-free way to make your money work in step with your real-world expenses. Visit your nearest UBGB branch to check today’s rate and get started.