OPENING OF TERM DEPOSIT ACCOUNTS - ELIGIBILITY : Term deposit accounts can be opened by (a) A person in his own name.

(b) Two or more persons in their joint names payable to (i) (ii) both or all of them or to the survivor(s); or either or any one or more of them or to the survivor(s).

(c) A natural guardian on behalf of minor. (d) A natural guardian in the joint names of himself/herself and the minor, payable to either or survivor. (e) A person in the name of any minor for whom the said person is the guardian appointed by a Court. (f) A minor aged 10 years or above in his single name to be operated upon by himself. (g) A Club, Association, Society, Educational Institution and other such bodies. (h) Trustees / Executors / Administrators / Courts. (i) Proprietorships, Partnerships and Limited Companies. (j) The depositor has to submit two passport size photographs. INTRODUCTION OF TERM DEPOSIT ACCOUNTS : Introduction is necessary for all deposit accounts. Such introduction may be by an existing account holder or a respectable member of the local community known to the Bank, who should normally call at the Bank and sign in the column specially provided for the purpose in the account opening form. The introducer should have conducted his/her account in a satisfactory manner for a minimum period of six months.

ACCEPTANCE OF PASSPORTS/POSTAL IDENTIFICATION CARDS FOR THE PURPOSE OF INTRODUCTION : (i) Passports/Postal identification cards are accepted as valid documents for the purpose of identification/ introduction for opening of new Saving Bank and Term Deposit accounts. The signature of the applicant and other particulars as given in the application form and specimen signature card must agree with that recorded in the passport/postal identification card. ii) Any one of the other documents like Driving Licence, Voter Identity card, PAN card, Ration card etc is also to be submitted for the purpose verifying the identity and address of the customer (iii) The Citizens are requested to introduce customers who are well known to them with regard to their address, occupation, etc., so as to avoid opening of accounts by undesirable persons. ADDITION / DELETION OF NAMES IN TERM DEPOSITS : The depositors can add or delete names in the term deposits, as detailed below: (1) When the deposit is in the name of a single individual, the addition may be made at the written request of the sole depositor. (2) If the deposit is in the joint names of two or more persons, for adding or deleting the name of any person, written consent of all the depositors is required. Splitting up of joint deposits in the name of each joint account holders is also permitted when written instruction duly signed by all the depositors is furnished to the Bank. (3) If the request for addition/deletion of a name is received from the survivor(s), after the demise of one of the joint depositors, such

request can be acceded to, provided the legal heirs of the deceased and the survivor(s) give a consent letter. In all the above cases the amount or duration of the original deposit should not undergo change. In the case of deposits PAYABLE TO FORMER OR SURVIVOR, the name of the Former cannot be deleted. Also, deletion or substitution of all names in a deposit should not be permitted as it would amount to termination of the original contract. TRANSFER OF DEPOSIT ACCOUNTS FROM ONE BRANCH TO ANOTHER : Current / Savings Bank / Recurring Deposits / Term Deposits are freely transferable from one branch to another under written instructions of the customer. INTEREST RATE ON DEPOSITS The interest rate applicable to the different schemes are determined by the bank based on market conditions, cost of funds etc.. The interest rate offered are non discriminatory and are applicable uniformly to all depositors at all branches of the Bank FLOATING INTEREST RATE Bank is also offering floating interest rate linked to average Government Security rate for the relevant period. Minimum deposit amount is Rs 1 lac. Minimum period of deposit is 3 years and maximum period is 10 years. Premature closure of deposit is not allowed before completion of 3 years. The interest rate is reset twice every year in March and September based on the link interest rate. The deposits are accepted at select branches only due to operational convenience. Conversion from floating interest rate to fixed interest

rate is not permitted. Deposits received from the Senior Citizens under the scheme are not eligible for additional interest of 1% DEPOSITS OF SENIOR CITIZENS Deposits received from Resident Senior Citizens who have completed 60 years of age are given certain additional privileges by. Proof of age is required. Joint accounts with another Senior citizen or any other person can be opened. Deposits are accepted for a minimum period of 15 days and for a maximum period of 60 months. Additional interest of 1% per annum is payable on the senior citizen deposits on deposits aggregating to Rs 15 lacs in the same branch or different branches. PREMATURE WITHDRAWAL OF DEPOSITS : Premature closure of term deposit before the due date is also permitted. The system of charging penalty for premature closure of domestic term deposit in our bank is as follows: a) If the deposit is upto Rs 5 lacs Applicable interest rate for the period run prevailing on the date of deposit. b) If the deposit is over Rs.5.00 lac - 1.00% fore closure charges is deducted from the applicable the period the deposit has run In respect of premature closure of deposits obtained under VARDHAN scheme of Senior Citizens, branches are permitted to pay additional interest of 1% over the applicable rate for the period the deposit remained with the bank, provided the deposit amount does not exceed Rs Five lacs rate for No foreclosure charges.

RENEWAL BEFORE MATURITY : Whenever there is an upward revision of deposit interest rates, Citizens may prefer to close the existing deposits before maturity and open fresh deposits so as to get the benefit of the higher interest rate. In such cases, the renewal of a deposit before the date of its maturity shall not be regarded as premature closure, provided it is renewed for a period longer than the remaining period of the original contract. Interest for the period from the date of deposit till the date of such renewal shall be payable at the rate applicable to that period, as prevailing on the date of original deposit. However, the foreclosure charges of 1% will not be deducted in such cases. ADVANCES AGAINST DEPOSITS : Advances can be granted upto 90% of the deposit amount including interest component accumulated on the deposit except in certain cases where loan is granted upto 85% of the deposit amount.. Interest on such advances shall be charged at 2.% over the deposit interest rate in the case of Cash Credit accounts and 1.50% in the case of demand loan account. However, advances can also be granted to the third parties other than the depositors and the rate of interest charged on such loans are 2 % over the deposit rate. The following loans are not regarded as loans against third party deposits: Where a loan or advance is made (a) against deposit in the name of the borrower jointly with others; (b) to a partnership firm against a deposit in the name of one of the partners;

(c) to a proprietary concern against a deposit in the name of its proprietor; (d) to a guardian against deposit in the name of his ward (where the guardian, being competent to borrow on behalf of the ward, does so). Interest on loan against deposits shall be charged at monthly rests. Interest earned and due on the deposits shall be credited to the loan account only. In the case of deposits such as RDP/Cash Certificate, etc., where the principle together with interest are payable on maturity, interest on the loans is recovered separately from the depositor every calendar quarter. ADVANCES AGAINST THE DEPOSIT RECEIPTS ISSUED BY OTHER BRANCHES OF OUR BANK : Advances, against deposit receipts issued by other branches of our bank, can be made only on proper identification and after confirmation of issuing branch to the effect that it has recorded the lien of the lending branch on the deposit receipt/register. PAYMENT OF TERM DEPOSITS FOR RS.20,000/- AND ABOVE : In terms of provision of Income Tax Act currently in force, where the depositor holds aggregate term deposit of Rs.20,000/- or above, the payment will be effected only by way of Account Payee Crossed Bankers Cheque or Demand Draft or by credit to the account of the depositor. Request for cash payments, will not be entertained in such cases. TAX DEDUCTED AT SOURCE ON INTEREST ( ACCRUED/DUE) ON DEPOSITS :

As per the directives of Government of India, Tax is deducted at source as and when interest earned on all the term deposits put together is Rs.5,000/- and above during a financial year at a Branch. For Savings Bank and Recurring Deposit accounts, tax is not deducted at source. The stipulated rate or percentage of Tax Deduction at source is 10.20% in case of individuals, proprietary firms, partnerships, Hindu Undivided Family and 20.40(including surcharge)% in the case of Company accounts, as per the existing guidelines. In case of deposits in the name of individuals TDS will not be effected at source when the depositor submits declaration in Form No.15 H. BANKING CASH TRANSACTION TAX (BCTT) Government of India has introduced the BCTT in the finance bill of 2005. It has come into effect from 1.6.2005. As per the existing Rules, the taxable transactions are;: 1 Cash Withdrawals on any single day from an account(other than SB account) 1.1 Any person or HUF Amt Rs 25,000 Amt Rs 1,00,000 1.2.Any person other than individual or HUF 2 Encashment of Term Deposit on any single day Any Individual or HUF Any person other than individuals or HUF Amt Rs 25,000 Amt Rs 1,00,000

The present rate of BCTT is 0.10% of the value of each transaction. BCTT is not applicable if the Term Deposit is credited to any account with the bank VARIOUS DEPOSIT SCHEMES :

Indian Overseas Bank offers a spectrum of tailor made saving schemes to suit the varying needs of the Citizens. One (or more) of the following is just the type of scheme you are looking for.