Monthly Savings Deposit Scheme (MSDS)

Features

Monthly installment-based savings schemes (Government Tax and Excise Duty applicable)
Installment of Tk.500 or its multiple
Can be opened for any year between 1 to 20 years
Interest Frequency: Half-yearly
Secured Credit Card can be offered to the customer with a limit up to 90% (maximum 20 lac) of the customer deposit principal value. Credit Card will be lien against MSDS Account. During encashment, Customer will have to surrender the credit card after clearing outstanding amount
Nature of the Credit Card will be “Pre-approved” as per existing credit card policy
Secured Loan/ overdraft facility may be allowed up to 90% of the deposited amount subject to minimum loan amount of Tk. 15,000

Govt. Tax and Excise Duty

Tax Deducted at Source (TDS) and Excise duty will be borne by the customer
Reduced TDS to be calculated from the date of PSR (Proof of Submission of Return) submission
Excise duty to be realized automatically at the end of the year (December) and manually during encashment for the current year
Income Tax shall be applicable on customer’s interest income only

Deposit Rules

First Instalment needs to be made upfront while opening the account and should be equal to only one instalment size. Subsequent Instalments (with auto debit instruction by Standing Order where applicable/Direct Deposit) will commence from the 2nd month onward
Customers may open at any day of the month, subsequent monthly deposits shall be due on the same dates. To avoid penalty, the Customer will get a 7 days grace period from the payment date, failure to deposit within grace period will be subject to a monthly penalty of 5% on monthly deposit
If the penalty for missing an instalment is not deposited on time, the maturity amount might differ from the committed MSDS amount
The maturity amount may change if the customer pays instalments in advance or pays less than the required amount. If the customer pays more than the required instalments or higher amounts, the maturity value will not exceed the committed amount, except for the return of the extra principal paid (after deducting applicable taxes, excise duty, etc.)

Premature encashment Policy

Encashment occurs after completing 1 year:
- The principal amount along with accrued interest calculated up to the last completed tenor
- For any partial period beyond the completed term the prevailing generic savings deposit interest rate will be applied for the broken months
Encashment occurs before completing 1 year, the customer will receive:
- The principal amount, and interest at the prevailing generic savings deposit rate.
- If the deposit has not completed a minimum of six months, no interest will be payable

Failure to make Payment of Regular Instalments

Failure to make payments for 03 (Three) consecutive months will result in the termination of the account relationship. The interest on the deposit will be calculated in accordance with the premature encashment rules
If the customer fails to deposit the required number of instalments and the term has expired, interest on the deposited amount will be calculated in accordance with the premature encashment rules.

Interest Rate

Monthly Installments