State Bank of India (SBI) is offering the option of a savings account that lets customers save for their vacations. The account, called as the SBI Holiday Savings Account, enables customers to save monthly amounts in the form of a recurring deposit (RD) with SBI in order to avail a vacation package-listed under Holiday Savings Account packages on Thomas Cook’s website. This scheme of SBI is in association with Thomas Cook India. “Advance planning and regular saving will ensure that your holiday does not remain just a dream but turns to reality! State Bank of India in association with Thomas Cook India presents a unique savings plan for holiday goers,” SBI said on its website sbi.co.in.
How SBI Holiday Savings Account works:
You are required to visit the Thomas Cook HSA website and choose a package of your choice.
The cost of the package you choose will be divided by 13, said SBI. You will be redirected to OnlineSBI portal where you can setup an electronic- Recurring Deposit (e-RD) account for 12 monthly instalments.
Your e-RD will earn interest as per the prevailing interest rates for the 12 month period.
At the end of 12 months, the maturity proceeds will be transferred to Thomas Cook to pay for your pre-selected holiday package.
Thomas Cook will fund the balance amount i.e. the 13th installment to purchase your package after factoring in the accrued e-RD interest.
Terms and conditions of SBI Holiday Savings Account
This SBI e-RD account is opened for enrolling in Holiday Savings Account scheme of Thomas Cook and therefore information on this account will be shared with Thomas Cook.
The tenor for this product is fixed at 12 months and the amount is decided by Thomas Cook based on the package chosen by the customer.
This SBI e-RD account in INR will be generated in the name(s) of the account holder(s) as the account from which it is funded.
If this SBI account is closed prematurely, the proceeds will be credited to the account from which the e-RD account was initially funded.
The e-RD account with additional rate of interest for senior citizens will be issued if option for “Senior Citizen” is selected by the customer and age of customer is 60 years or above, on the date of creating the recurring deposit, as per the date of birth recorded with SBI.
Premature closure of this SBI account is allowed and SBI’s applicable premature withdrawal penalty will be applied.
The penalty in case of delay in payment of instalment of RD shall be Rs 1.50 for every Rs. 100, per month.
On maturity of SBI e-RD account, the maturity instruction set for the account will be executed and the proceeds will be transferred to Thomas Cook unless the customer changes the maturity instruction to be credited to the savings account from which the e-RD account was funded.
SBI will not be liable for any issues/ complaints/ loss arising due to non-fulfilment of terms by Thomas Cook India.
This SBI e-RD account is subject to tax deducted at source (TDS). The TDS is applicable on the customer information file (CIF) value and the amount of TDS applicable cannot be ascertained beforehand.
The application of TDS may reduce the amount of funds transferred to Thomas Cook at the time of maturity and hence it will be the sole responsibility of the depositor to pay the difference to Thomas Cook.
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