Deposits -FAQs

• Acceptance Of Deposits
• Income Tax
• Payments
• Loan on Deposits
• Transmission
• General
• Interest Payment
• Renewal
• NRI Deposits
• Nomination Facility

What is the difference between form 15G and form 15H?

Form 15G is meant for Resident Individuals who are of the age below 65 years. 15H is meant for Senior Citizens who are of the age of 65 years or more during the financial year.

Tell me about your Company

Click here to see Info about the Company!

What is the security for my deposit?

SF adopts sound financial policies which enhance the inherent strength of the company like ploughing back profits to build up a strong capital base, depreciating its assets under the written down value method, careful selection of risk and proper deployment of funds. An effective collection machinery with a large net work of branches all over India ensures a very high rate of collection of receivables. These ensure security for the depositors' money.

What are the schemes of deposits available ?

There are two schemes namely Fixed and Cumulative Deposit schemes.

What is the difference between a Fixed deposit and a Cumulative deposit ?

In Fixed deposit scheme, interest is payable at specified frequencies. The scheme will be convenient for persons like pensioners, who require periodical interest payment. In Cumulative deposit scheme, interest is payable at the time of maturity along with the principal. This scheme is suitable for persons who do not require periodical interest payment and this can be thought of as a money multiplier scheme.

What is the minimum deposit amount for CD & FD ?

For both the schemes, the minimum deposit amount is Rs.10000/-. Additions can be made in both schemes in multiples of Rs.1000/-

What is the present rate of interest ?

Click here to see the present rate of interest.

What are the periods for which deposits are accepted at present?

12 Months, 24 Months & 36 Months

How do I tender the amount for the deposit?

By means of a Cheque/DD/P.O. issued in favour of SUNDARAM FINANCE LIMITED , as the case may be. Depositor can send the DD Payable at Chennai/P.O. of a bank in Chennai.

Can deposits be made from time to time as addition to the existing deposits?

Yes. Both in FD & CD. However, deposits in the same order of names only would be controlled in the same account, though different term deposit receipts will be issued from time to time for different maturities.

Can deposits be made by way of cheques issued favouring the depositor/third party and endorsed in favour of Sundaram Finance Ltd.?

No. The cheque should be issued in favour of SUNDARAM FINANCE LIMITED.

Can a deposit be by way of withdrawal slip relating to SB a/c with Banks?

No

Is there a prescribed form for making deposits?

Yes. Application for deposit should be made on the prescribed form of respective companies.

If the parents of a Minor are not alive, who can be Guardian?

Only the person(s) who have been appointed as guardian by the Competent Court should sign the application. A copy of the Court Order has to be given for our files.

What is to be done, on a minor attaining majority?

The erstwhile guardian should send us a letter intimating the same duly attaching the signature of the Minor turned Major.

Can a deposit be made in the name of an illiterate?

A photograph of the depositor should be pasted in the deposit application form with the left hand thumb impression affixed and duly attested by a Gazetted Officer/or may be authenticated by a bank manager.

Can a PA holder sign the deposit application form?

Yes. A copy of the Power of Attorney to be obtained and filed.

Can a deposit be made in the name of minor alone or jointly with another?

You can make a deposit in the sole name of the minor. Also, in the name of minor jointly with one or two individuals. In case of a minor, the date of birth of the Minor should be indicated in the deposit application form in the space provided. In the case of Hindus, the application form should be signed by the father or mother of the Minor. In case of minors belonging to the Muslim Religion, only the father should sign the application form as guardian.

Can I have joint account/s?

Yes, maximum in the names of three persons payable to "Anyone or Survivor" or "No.1 or Survivor".
ANYONE OR SURVIVOR (A OR S) - The deposit receipt can be discharged by Anyone of the depositors on maturity. For premature payment & loan all the depositors signatures are required.


NUMBER 1 OR SURVIVOR (N OR S) - Only the first named depositor is entitled to receive the amount prematurely or on maturity. The first depositor has the sole control over the deposit during his/her life time. On the death of the first named depositor, the deposit will be transmitted to the Survivor on production of Death Certificate issued by the Municipality/Village Panchayat. For premature payment & loan the first depositor's signature is sufficient.

Is there any brokerage/incentive for deposits?

No

Do you offer monthly interest on one/two year deposits?

We do not allow monthly interest on 1 and 2 year deposits

Can different IW despatch frequency be stipulated for different TDRs in the same account?

Yes. However, the depositor would find it convenient to have one IW in respect of all TDRs in an account by opting for uniform periodicity of interest payment

Is it possible to change the interest payment mode during the period of TDR?

Yes. Monthly can be changed to quarterly, viceversa in the case of 36 months deposits.

What are the modes by which interest is paid?

Periodical IWs to depositor, Periodical IWs to bank, Periodical IWs to depositor with bank details printed, Periodical IWs to bank through Electronic Clearing Service (ECS)

Can the IWs be sent to the bank account of the depositor direct?

Yes. If the depositor desires so, and if full particulars of the bank are furnished in the application form, periodical IWs will be sent direct to the bank concerned for credit of the depositor's account.

What is the Bank on which your IWs are drawn?

State Bank of India, Gopalapuram Branch, Chennai 600086 payable at Par at all SBI branches in India without any charges (ie : If there is SBI in the place of the depositor's bank, SBI will not levy any commission etc and the full amount will be paid through local clearing).

What happens, if there is no branch of SBI in my place?

In case there is no SBI branch available, the bank where you present the IW will levy collection charges

Can you send the IWs favouring the second depositor?

No. Interest will be paid to the first depositor only.

Can a Fixed deposit during currency be converted into CD?

No. As the interest would already have been paid (monthly / quarterly) such a conversion is not possible.

When will interest be credited in case of CD for the purpose of income tax accounting?

Interest will be credited in our books as on 31st March, every year and is payable on the date of maturity along with the principal.

What happens if the interest rate comes down during currency?

No change since we are obliged to pay the contracted rate till its maturity as per current rules.

Is Nomination facility available?

Yes.

What is the maximum number of joint depositors?

Three.

What do you mean by an Assessee and Non Assessee?

An Assessee means a person, including an individual, association of persons, firms etc. whose total income during a particular financial year exceeds the amount liable to be taxed. All other persons are known as Non-assessees.

Will Income Tax be deducted at source from interest?

It is obligatory on our part to deduct income tax at source if the estimated annual interest paid/credited on a deposit account exceeds Rs.5000. However, Non Assessees (individuals, HUF, Trust) can avoid such deduction by furnishing a self-declaration in Form 15G/15H.

Can you open more than one account in the same order of names?

No. All deposits held in the same name, or in the same order of names (in case of joint deposits) are required to be clubbed together for the purpose of calculation of income tax.

What is Form 15G/15H - Where do I get it from?

Form 15G/15H is a self declaration by the depositor, which can be got from the company. It is a self declaration, which needs no attestation by anybody except in case of Left Hand Thumb impression, which needs to be attested by a Gazetted Officer/Bank Official. Since a copy has to be retained in our files and one copy sent to IT dept. it is required to be furnished in duplicate. We will send Form 15G/15H declaration in the month of March and the depositor is required to return the same in duplicate duly completed and signed by the first Depositor. Form 15G/15H is sent to the depositor on the basis of the estimated interest payable for the full financial year and such estimation is calculated as on 31st March. In Cumulative deposit the estimation will be on the assumption that the deposit will be renewed for the entire maturity value on the due date in the following year.

Is it not enough to furnish the Form once at the time of placing the deposit?

No. Since there may be changes in the Income Tax laws, the Form 15G/15H is required at the beginning of each financial year or at the time of deposit, where applicable.

What type of certificate do you give for the Tax deducted at source?

A Consolidated Tax Deduction Certificate at source in the prescribed Form 16A, giving details of the interest remitted to Govt. etc. will be sent during second/third week of April every year.

If Form 15H is furnished, will there by any query from Income tax dept.?

Since, one copy of Form 15G/15H is required to be sent to I.T.O. it is possible that the ITO may raise some query, when they deem it necessary.

In case of salaried persons, if Income Tax is deducted at source from salary, can he furnish Form 15G/15H?

No. Since he is an Assessee.

When do you intimate the maturity of the deposit?

A computer generated renewal application form (MIL) is sent 15 days in advance of the maturity.

What I should do to get my deposit renewed?

The completed renewal form and the matured TDR are to be sent to us for renewing the deposit.

Are the signatures of all the joint depositors required on renewal form?

Yes. Since it is a renewal of the existing contract.

Can you not renew the deposits at your various branches?

Presently, on line services are available for SF Deposits at HO, Adyar, T.Nagar and Annanagar in Chennai only. All the other branches of SF will, however, accept the renewal documents and forward it to the centralised deposit department.

Will you stop the payment of interest on maturity of a deposit, if it remains unrenewed?

Yes.

Do I get a retrospective effect on a belated renewal?

Only if renewal is effected within 60 days from its maturity date. Otherwise the deposit will be renewed only prospectively.

When will you pay the arrears of interest in such cases?

On renewal, arrears of interest on the matured deposit will be included in the forthcoming interest warrant in case of fixed deposits.

Can we change order of names on Maturity?

Yes. In case of A or S only. In case of N or S joint accounts, the first name cannot be changed but the second name can be changed.

Do you renew odd sums?

Yes only in CD for maturity value. In case of FD only in multiples of Rs.1000/-.

In case I need money urgently, can I withdraw the deposit?

RBI directions prohibit us from allowing withdrawal of deposits within 3 months from the date of deposit renewal.

Can I withdraw the deposit after 3 months?

Yes- Premature withdrawal can be done after 3 months from the date of deposit/renewal as per the Directions of Reserve Bank of India and the terms and conditions of the Company in force from time to time.

Will I get part payment prematurely?

Yes. The same procedure which is applicable for full premature payment. However, in such cases, the depositor can also consider availing a loan upto 75% of the deposit amount.

What is the procedure for foreclosing my deposit?

The premature withdrawal form and the deposit receipt discharged on its reverse on Re.1 Revenue stamp, have to be sent to us with instructions to repay the deposit before maturity. In case of A or S joint accounts, all the depositors have to give their discharge on the TDR and premature withdrawal Form. However in case of N or S joint accounts, only the discharge of the first depositor is necessary. In both cases the premature proceeds will be favouring the first depositor only.

Can you pay the premature proceeds fvg. the second/third depositor?

No. Premature payments will be made to the first depositor only.

What is the procedure for getting repayment of the deposits?

The deposit receipt discharged over 1 Re. revenue stamp on its reverse to be sent to us with repayment instructions.

Can a part amount be withdrawn and the balance amount renewed?

Yes. Subject to the minimum of Rs.10000/- per account

Is the signature of one of the depositors enough for payment on maturity?

Yes, in case of A or S. However, in N or S cases, the first depositor's signature alone is needed.

Will the matured payment be made to either of the depositors?

Yes. In A or S Account. However, in N or S joint accounts, the payment will be made to the first depositor only.

Will you send the payment in advance?

In branch areas, where we have cheque facility of our banks, post dated payment cheques can be sent a week in advance of the maturity. In places where such a facility is not available, repayment will be made by way of DD on the date of maturity. If the date of maturity falls on a Sunday or a Holiday, the payment will be made on the next working day.

Will you pay back the deposit in cash?

No. Payment will be made by A/c Payee Crossed cheque/ DDs only.

Can you send the payments direct to my bank, under an advice to me?

Yes

Will you allow a loan on the deposit?

As per RBI's directives, we are allowed to grant loan upto 75% of the deposit amount after 3 months from the date of deposit/renewal.

What is the rate of interest chargeable for loans?

2% over and above the contracted rate of interest.

What are the documents to be executed for availing loan?

Demand Promissory Note, Deposit Receipt, Letter of Lien. These documents have to be signed by all the depositors in A or S and by the first depositor alone in N or S and sent us.

How do you recover loan interest for CD/FD?

In case of FD, it is recovered from the periodical interest warrants. In case of CD, the same is adjusted in the repayment proceeds at the time of maturity.

Can the loan be repaid in instalments?

Yes subject to a minimum of Rs.500 per instalment. Interest on the loan will be calculated on diminishing balance.

When a depositor passes away, what are the formalities / documents needed for the transmission of the deposit ?

In case of `A or S' or `N or S' joint accounts, deposit receipt along with an attested photo copy to the death certificate issued by the Corporation / Municipality / Village panchayat have to be produced. Burial ground receipts, Doctor's certificate etc. will not be sufficient for the purpose.

If the sole depositor passes away, what are the documents required ?

Attested copy of Death Certificate, Term Deposit Receipt, Will or testamentary disposition, if any, or An attested copy of Legal Heirship Certificate issued by a Tahsildar / Coporation

Do you accept NRI deposits ? On what basis ? If so, do you deduct tax- and at what rate?

For details on NRI deposits please Click Here