New York

Salient Features

Please read the complete disclosure of account terms and fee schedule in the Customer Manual before applying for an account. Only the salient features of the Customer Manual pertaining to this type of account are given below.

  • $ 5,000 minimum deposit for U.S. resident consumers and corporate customers
  • $ 10,000 minimum deposit for non-US resident consumers and corporate customers

It is easy for you to renew your CD. For maturities greater than one month, we will mail you a maturity notice not less than 14 days and not more than 30 days prior to the maturity date. Unless you give us instructions to the contrary, we will automatically renew your certificate of deposit for a period equal to the existing term or one year, whichever is less, at the rate offered for that term on the maturity date. The CD advice shall be mailed to you thereafter.

CDs which are automatically renewed carry a 10-calendar-day grace period, including the maturity date. During these ten days, you may notify us to cancel your CD and withdraw your funds without incurring a premature withdrawal penalty. If you cancel your CD during this time (the grace period), we will not pay any interest from the maturity date until the date of such withdrawal.

If we do not receive your instructions for disposal of the maturity proceeds, and if you have declined automatic renewal, we will place the maturity amount in a non-interest bearing account.

Should your CD mature on a non-business day (Saturday, Sunday or legal holiday), it will be payable on the next business day and you will continue to earn interest until the next business day after the maturity date.
Certificates of deposit are non-negotiable and non-transferable. Joint accounts are opened with the right of survivorship.

There are two options for payment of interest; interest at periodical intervals (non-cumulative) or interest on maturity (cumulative). Interest at periodical intervals will be paid at monthly / quarterly / half yearly / yearly intervals. Cumulative interest will be compounded at quarterly intervals and paid along with the principal on maturity date.

Interest earned during the calendar year is reported to the Internal Revenue Service in the year in which the interest is paid.

Interest and principal can be paid only to the account holders.

The principal amount of CD cannot usually be withdrawn before the maturity date, unless the Bank consents to the withdrawal as a special case. We may require that all holders of a joint account authorize a premature withdrawal of the principal from a CD account. Partial withdrawal is not permitted. The penalty for early withdrawals of CD is as follows:

Term of Deposit No. of Days for Which Interest will be Recovered
14 days 14 days
1 month to less than 1 year 30 days
1 year to less than 3 years 60 days
3 years to less than 5 years 120 days
5 years & over 180 days

The penalty will be calculated at the interest rate of the deposit. The penalty will be applied irrespective of the period that the CD has remained with the Bank. A penalty will not be charged if the account holder dies or is declared legally incompetent.

Principal Protection: The penalty for early withdrawal would be limited upto the amount of interest paid / payable and will not result in reduction of the amount originally deposited