Individuals, corporations, enterprises, associations and even government agencies have surplus funds, from time to time, which they do not need to use now and in the immediate future. Their need is to ensure that these funds are placed in an institution which can guarantee its safety, security and, at the same time, generate acceptable level of earnings.
Customers therefore use Fixed Deposit to ensure that funds for which they do not have immediate use are kept safely and invested prudently to yield good returns.
The key features of the Fixed Deposits are:
- Fixed Deposit certificates are issued
- Upon maturity of the fixed deposits, the customers account is automatically credited with the principal amount and the interest
- If the customer does not have any account with the Bank, then upon maturity a payment order is given containing both principal and interest. The customer can roll-over the principal and interest for the next term.
- Depending on the amount of deposits, the rate charged is negotiable
- Tenor/Duration of Fixed Deposit: Fixed Deposit can be made in periods of one (1) month, three (3) months, six (6) months, one (1) year and even more than one (1) year.
- Fixed Deposit Certificates can be used as security to obtain loans and other facilities with the Bank
D. Eligible Parties
The following legal entities are eligible to enjoy the facility:
- Sole proprietors
- Societies /Clubs/ Associations
- Statutory Bodies
- Government/Statutory Bodies
- Semi Government/Public Agencies
The following are the main benefits enjoyed by UT Bank’s Fixed Deposit customers:
- Fixed deposits can be used as security for loans and overdrafts
- Interest is calculated daily
- High interest rates are paid
- No bank charges
F. How to Apply
- Completion of the relevant application form as provided by the Bank
- Submission of the Fixed Deposit funds