Cosmos Bank FD Interest Rate

Fixed Deposit Scheme

• Minimum investment: ₹1,000 and in multiples of ₹100.
• Maximum investment: No Upper Limit 
• Scheme tenure: 7 days to 10 years
• You can opt for monthly, quarterly & cumulative interest payout options.
• The auto-renewal facility is available with this deposit.
• The bank allows premature withdrawal with an applicable penalty.
• Senior citizens enjoy higher interest rates than regular citizens.
• A nomination facility is also available. 

Cosmo Tax Saver Deposit Scheme

If you invest in this FD, you are eligible for a tax deduction of up to ₹1.5 lakhs under Section 80C of the Income Tax Act of 1961.

• Minimum investment: ₹100
• Maximum investment: ₹1.5 lakhs per annum.
• Scheme tenure: 5 years
• Lock-in period: 5 years
• Senior citizens enjoy higher interest rates than regular citizens.
• A loan against this deposit is not available.
• Premature withdrawal is not allowed except in the case of depositor’s death.
• A nomination facility is also available.

Cosmos Bank Flexi Fixed Deposit Scheme 

Current accounts in any scheme or savings accounts in premium and royal schemes will be eligible for this deposit.

• If the current or savings account balance exceeds the predefined limit, the bank will transfer the excess amount to the Flexi fixed deposit account.
• In case of a requirement of funds in a current or savings account, the amount will be transferred from a flexi fixed deposit account adhering to the Last In, First Out (LIFO) method.
• The bank will pay the interest after 30 days, and the amount of interest will be credited to your operative account.
• You can avail 90% overdraft facility on this deposit.

Cosmo Care Deposit Scheme

Cosmo Care Deposit Scheme offers medical facilities in over 100 hospitals. It has facilities for immediate withdrawal and facilitates hospital bill payments via SMS. Apart from the account holder, their family and friends can avail the medical benefits.   

• Minimum investment: ₹25,000 and maintenance of an average quarterly balance of ₹5,000 on your savings account.
• Scheme tenure: 7 days to 10 years
• This deposit is available to all general as well as senior citizen depositors.
• You can avail the overdraft facility under this scheme.
• A premature withdrawal facility is available at the time of hospitalisation.
• A nomination facility is also available with this scheme. 

• Period: The FD with Cosmos Co-operative Bank ranges from 7 days to 10 years.
• Convenient: Open hassle-free FD using online banking in a few minutes
• DICGC insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs. 
• Minimum amount: Fixed deposits with Cosmos Co-operative Bank can be opened with an investment of as low as ₹100 
• Preference to senior citizens: Cosmos Co-operative Bank offers additional interest rates for senior citizens.
• Nomination facility: Depositors can nominate beneficiaries for their investments in Cosmos Co-operative Bank FDs. 

• Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation. 
• Fixed rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.

The eligibility criteria for opening a fixed deposit account at Cosmos Co-operative Bank are as follows:

• Indian individuals over 18 years of age
• Organisations
• Minors under the supervision of their parents
• NRIs

The Cosmos Co-operative Bank has a minimum documentation requirement for opening FDs. They are as follows:

• Age proof: Aadhaar card, Voter ID, or any document mentioned in the bank guidelines.
• Address proof: PAN card, electricity bill, telephone bill, Aadhaar card or Voter ID. 
• Photographs: Recent passport-sized photographs

Here are the steps to follow to open an FD at Cosmos Co-operative Bank:

Step 1: Visit your nearest Cosmos Bank branch.  

Step 2: Take an account opening form for the term deposit.

Step 3: Fill in the details and add all the documents and the cheque. You can also transfer the funds via internet banking.

Step 4: Collect your FD receipt.

Conversely, you can also open an FD with Cosmos Co-operative Bank online using internet banking.

The penalty charges for premature withdrawal at Cosmos Co-operative Bank are similar to the standard charges. The bank charges a penalty of 1%, levied on the rate applicable for the tenure for which you have kept the deposit with the bank.

According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.

In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:

• Taxpayers can invest in FD either through public or private sector banks. 
• Individuals and HUFs can avail tax deductions by investing in tax savings FDs. 
• Bank's five-year tax saving FD offers exemptions under Section 80C. 
• Investors cannot get loans against these FDs. 
• In the case of joint holders, only the first holder can get tax benefits. 

When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs. 

Tax Deducted at Source (TDS)

• TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year. 
• For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.