Jammu and Kashmir (J&K) Bank RD Interest Rates

Jammu And Kashmir Bank Limited or (J&K), a state-owned bank, was founded on October 1, 1938, and began operations on July 4, 1939, in Kashmir (India). The bank had a distribution network of 956 branches and 1382 ATMs across the country as of December 31, 2020.

It provides banking services in three key divisions: support services, treasury services, and third-party services. The bank is divided into four segments, and they are - Treasury, Corporate/Wholesale banking, Retail banking, and other banking operations.

Now, the bank is known to offer its customers a wide range of products and services, among which RDs are also one. 

JK Bank RD Interest Rates 2024

Here is the table to show the J&K Bank RD interest rates:

J&K Bank's interest rates for recurring deposit accounts created by Senior Citizens are normally 0.50% higher than regular term deposit rates. This higher interest rate is applicable to all maturity terms and deposit amounts.

The interest rate given for a 6-month RD is 4.50%, and for a 9-month RD, it is 4.50% for elderly persons. J&K Bank offers interest rates ranging from 5.60% to 5.80% for tenures ranging from one year to up to four years. Customers can earn 5.80% on senior citizen recurring deposit accounts with terms ranging from 5 to 10 years.

Tenure

Recurring Deposit Interest Rates J&K Bank

181 days - 270 days

4.50%

271 days - less than 1 year

5.00%

1 year 

5.60%

2 years 

5.70%

3 years 

5.80%

5 years to 10 years

5.80%

J&K NRE RD Account

J&K Bank also offers NRIs recurring deposit accounts with excellent interest rates. The interest rates on NRE and NRO deposits vary depending on the duration and deposit amount.

Period

Interest Rate

1 year

5.10%

2 years

5.20%

3 years

5.30%

5 years to 10 Years

5.30%

J&K Bank Recurring Deposit Scheme

Jammu and Kashmir Bank's Recurring Deposit (RD) scheme offers competitive interest rates. The RD account has a tenure of 6 months to 10 years. The interest rate is fixed and compounded quarterly.

The interest earned on deposits is paid out when the deposits reach maturity. Premature withdrawal is permitted under the program, and loans can be obtained against the deposit and interest earned in the account. The minimum deposit required in the account is Rs.50.

Tax Implications over the RD from Jammu and Kashmir Bank

  • TDS would not be deducted from total interest generated up to Rs. 10,000. When the total interest collected in a fiscal year surpasses Rs 10,000, 10% TDS is levied. You are free to request a refund for any additional TDS paid. Previously, there was no TDS on RD; however, on June 1, 2015, TDS on RD became applicable under Section 194A.
  • TDS of 20% is levied if you do not have a valid PAN or do not present the PAN information to the bank/post office.
  • If the RD account holder does not have taxable income, he or she can submit Form 15G/ Form 15H to the bank/post office where the RD account is formed to avoid TDS. Form 15G is used for people under the age of 60, whereas Form 15H is comparable to Form 15G but can only be used for people beyond the age of 60. (senior citizens).

FAQ

Q1. How can I make an application for a recurring deposit?

If you are a new customer, you should begin by opening a savings account that can be connected to an RD account. You can submit the Deposit Account form at your nearest branch.

Q2. What are the requirements for opening an RD account with J&K?

The following individuals are eligible to open an RD with J&K:

  • Individual (alone or in collaboration with others).
  • The minors who have already attained the age of 10 and above in their own name (proof of age required)
  • Minors under the guardianship of a natural/legal guardian under the age of ten.
  • Commercial Organization, Company / Corporate Body Hindu Undivided Family Association, Club, Society, Trust or Religious/Charitable Educational Institutions, Municipality or Panchayat, Government or Quasi-Governmental Body
  • Accounts can also be opened by those who are illiterate or blind

Q3. Can I remove my deposit before it matures?

Yes, premature withdrawal of deposits is permitted; however, penal interest, if applicable, will be imposed on such withdrawals.

Q4. What are the minimum and maximum amount necessary to start a revolving account with Jammu & Kashmir Bank?

A regular recurring deposit with Jammu & Kashmir Bank requires a minimum initial balance of Rs. 50.

Q5. What is the time limit for making a deposit?

The minimum deposit term is six months and can be as long as 120 months.

Q6. What documents are needed to open an RD account?

The following documents are required:

  • Application form completed.
  • 2 passport-sized photos
  • Proof of residency, PAN Card / Form 60 or 61, and ID proof are required.
  • Any other KYC documentation that the bank may require.
  • Any other documents are relevant to Minors, Partnership Firms, Companies, HUFs, and so on.
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