BANKING GENERAL KNOWLEDGE
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Detailed explanation-1: -Minimum period of NRE term deposit is 1 Year and maximum 10 years. In the case of cash certificate, interest accrued on quarterly basis will be added to the principal (reinvestment plan). Premature withdrawal of deposit is permitted.
Detailed explanation-2: -Minimum tenure for NRE FD is 1 year and maximum tenure is 10 years.
Detailed explanation-3: -If the deposit is closed before 12 months from the date of deposit, no interest is payable, and thus no penalty will be charged. This is because the minimum duration of an NRE Fixed Deposit is 1 year.
Detailed explanation-4: -A 5-year term deposit is also called a Tax-Saving FD. If you invest in one, you are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. You can claim up to a maximum of Rs. 1.5 lakh.