Earn Up to 8.60% Under Chaitanya Godavari Grameena Bank Kalpalatha Term Deposit
By Team CodeForBanks | March 26, 2024
Chaitanya Godavari Grameena Bank is a Regional Rural Bank (RRB) having its headquarters at Guntur, Andhra Pradesh. Chaitanya Godavari Grameena Bank has emerged as a new entity after amalgamation of Chaitanya Grameena Bank and Godavari Grameena Bank on 01/03/2006. Chaitanya Godavari Grameena Bank has a wide network of 256 branches and 225 Business Correspondents in rural and semi urban areas of Andhra Pradesh.
Chaitanya Godavari Grameena Bank has been very helpful in developing the rural economy by providing loan products, deposit avenues and other banking facilities for agriculture and other productive activities in rural areas. Chaitanya Godavari Grameena Bank has catered to the needs of people living in the backward areas which are not covered by other commercial banks and other financial institutions.
Chaitanya Godavari Grameena Bank Kalpalatha Term Deposit
Chaitanya Godavari Grameena Bank has come up with a deposit scheme called Kalpalatha Term Deposit (KTD) also known as Gouthami Term Deposit (GTD) which is something different from its general fixed deposit scheme. Kalpalatha Term Deposit is a cumulative term deposit scheme which allows the investors to get returns in a lump sum amount at maturity in stead of getting interest on monthly/ quarterly basis.
Under Kalpalatha Term Deposit, the interest on your deposit also earns interest.
Suitable for Whom?
- Investors with a low-risk appetite
- Customers who do not wish to receive interest payouts on a regular interval
- Who want to locked-in the interest rate at the time of booking the deposit
- Persons who want to get a lump sum amount on maturity to utilize the same for a purpose
Features of Kalpalatha Term Deposit (KTD) or Gouthami Term Deposit (GTD)
- Term deposit scheme with reinvestment of interest quarterly.
- The interest is routinely reinvested.
- Flexibility to choose the principal amount and tenure.
- Various maturity FDs are available for investment and the customer can choose the term as per his objective.
- You can any time close your Kalpalatha Term Deposit prematurely without any difficulty.
How to Apply for Kalpalatha Term Deposit?
Customers are required to apply for Kalpalatha Term Deposit in prescribed form. They are required visit the branch for this purpose.
| Sr.No. | Step | Description |
|---|---|---|
| 1 | Visit the Chaitanya Godavari Grameena Bank Branch | You need to visit the Chaitanya Godavari Grameena Bank branch in which you want to open your Kalpalatha Term Deposit account. |
| 2 | Fill up Account Opening Form | Obtain the Fixed Deposit Account Opening Form and fill up all the necessary details of the customer's information and other details in the different sections given in the prescribed form like name, address, contact number, email id, PAN, type of account to be opened, nominee's name, etc. |
| 3 | Fill up Fixed Deposit Tenure | Chaitanya Godavari Grameena Bank offers various Kalpalatha Term Deposit tenures ranging from 6 months to 120 months. You can select any tenure based on your financial goals which you want to be fulfilled with the help of said FD. |
| 4 | Attach Cheque for Fixed Deposit | You need to attach a cheque worth of that amount you wish to deposit for FD. |
| 5 | Attach Required Documents | After filling up the account opening form, you need to attach KYC documents like PAN, Proof of Address & Proof of Identity. |
| 6 | Verification of Account Opening Form | Banker will verify Account Opening Form (AOF) and other attached documents. If he is satisfied with these requirements, he will proceed further. |
| 7 | Obtain Acknowledgement Slip | Once your documents are successfully verified, the banker will give you acknowledgement slip of Kalpalatha Term Deposit Account Opening Form. |
Benefits of Kalpalatha Term Deposit
- Interest rate will be locked for the whole tenure at the time of booking the Kalpalatha Term Deposit.
- The interest under Kalpalatha Term Deposit (KTD) is compounded and paid at the time of maturity along with the principal invested.
- Kalpalatha Term Deposit offers higher interest rates than savings account whereby customers can earn higher returns on their investment.
- Customers can withdraw their money at any time with some penalty.
- Senior citizens will be allowed 0.50% extra rate of interest.
How Kalpalatha Term Deposit Works?
In Chaitanya Godavari Grameena Bank Kalpalatha Term Deposit, the interest is reinvested on the quarterly basis on your principal deposited. This implies that your principal will be increased by the interest you earned during the first cycle. In the following cycle, you will receive the interest on the principal as well as reinvested interest i.e. you will receive interest on the increased principle and so on.
Suppose you have invested Rs.1,00,000 for 5 years under Kalpalatha Term Deposit. The interest rate applicable to you will be 7.25% (as per table given below)and the interest compounding frequency will be quarterly. On maturity you will receive Rs.1,43,226 as detailed below:
| Principal Amount | Rs.1,00,000 |
| Interest Earned | Rs.43,226 |
| Amount at Maturity | Rs.1,43,226 |
You can use FD calculator for calculating interest received and maturity value.
Rate of Interest of Kalpalatha Term Deposit (KTD)
| Period | Less than Rs 1 Cr | Rs 1 Cr & Above |
|---|---|---|
| 15 days to 45 days | 4.25% | 3.75% |
| 46 days to 90 days | 6.00% | 5.75% |
| 91 days to 179 days | 6.50% | 6.25% |
| 180 days to 364 days | 7.25% | 7.00% |
| 1 year to less than 2 years | 8.10% | 7.85% |
| 2 years and above | 7.25% | 7.00% |
Senior citizens will be allowed 0.50% extra rate of interest.
Tenure of Deposit
| Deposit | Tenure |
|---|---|
| Minimum period | 6 Months |
| Maximum period | 120 Months |
How to Maximise Kalpalatha Term Deposit (KTD) Returns?
In order to maximise Kalpalatha Term Deposit (KTD) returns, you would do the following,
- Always select a longer tenure of FD to get more benefit of the power of compounding
- You must invest a larger sum of money as an initial deposit so it can earn more interest over the tenure
- You can ladder your investments: Use of your funds by spreading your entire investment amount over multiple FDs having different maturity periods.
- Kalpalatha Term Deposit (KTD) being a kind of cumulative FD, the returns will be higher
- Do not break your Kalpalatha Term Deposit before its maturity to avoid penalty
- Book Kalpalatha Term Deposit for your parents/ grandparents, who are senior citizen as they will get 0.50% higher interest rate on their deposits in the scheme