9 Mins

Jammu and Kashmir Bank offers higher fixed deposit interest rates than their savings account. The interest rates range between 3% to 5.3% for regular citizens for a tenure of 7 days to 10 years. Senior citizens get an additional 0.5% on their Jammu and Kashmir Bank FD investments, and the interest rates range between 3.5% and 5.8%. This article covers J&K Bank fixed deposits and their interest rates in detail.

J and K Bank FD Rates April 2021

Below is the table showing J&K Bank fixed deposit interest rates.

Compare: Fixed deposit interest rate

TenureRegular RatesSenior Citizen Rates
7 days to 30 days3.00%3.50%
31 days to 45 days3.10%3.65%
46 days to 90 days3.25%3.75%
91 days to 180 days4.00%4.50%
181 days to 270 days4.40%4.90%
271 days to 364 days4.50%5.00%
1 year to 1 year 364 days5.10%5.60%
2 years to 2 years 364 months5.20%5.70%
3 years to 5 years5.30%5.80%
5 years to 10 years5.30%5.80%
Interest on J&K Bank Term Deposits are revised periodically

Features of Jammu & Kashmir Bank Fixed Deposit

Jammu and Kashmir Bank fixed deposits offer better returns than a savings bank account. Following are the key features of Jammu and Kashmir Bank term deposits:

Tenure, Minimum and Maximum Deposit Amount

The Jammu and Kashmir Bank FD tenure ranges between 7 days to 10 years. Once invested, one cannot change the tenure of the J&K Bank fixed deposit investment. However, they can opt for premature withdrawal and close the existing Jammu and Kashmir Bank FD and start a new FD with the desired tenure. The minimum amount of deposit for Jammu and Kashmir Bank fixed deposits is INR 100. Also, there is no limit on the maximum investment amount for Jammu and Kashmir Bank fixed deposits. 

J&K Bank Preferential Interest Rates

Jammu and Kashmir Bank FD interest rates range between 3% and 5.3% for regular citizens. The tenure range is seven days to 10 years. Furthermore, Jammu and Kashmir Bank offers preferential interest rates for senior citizen depositors. Jammu and Kashmir Bank FD rates for senior citizens range between 3.5% to 5.8%.

Additional Payments and Safety

It is not possible to deposit any additional amount in an existing Jammu and Kashmir Bank FD. However, one can always invest in a fresh Jammu and Kashmir Bank term deposit with an additional amount. Also, under the Deposit Insurance Scheme of RBI, DICGC insures all Jammu and Kashmir Bank fixed deposits up to INR 5,00,000.

Tax and TDS

Investment in J&K Tax Saver Term Deposit Scheme qualifies for tax saving under Section 80C of the Income Tax Act, 1961. Other than this scheme, no other FD scheme qualifies for tax saving. Moreover, the interest that one earns on their Jammu and Kashmir Bank FD investments is taxable as per the depositor’s income tax slab rates. Furthermore, J&K Bank deducts a TDS of 10% in case the interest income exceeds INR 40,0000 (INR 50,000 for senior citizens). Moreover, the TDS rate will be 20% of the PAN Card details aren’t submitted to Jammu and Kashmir Bank.

To determine if the interest income from a Jammu and Kashmir Bank term deposit is above or below the TDS threshold limit, one can use the Jammu and Kashmir Bank fixed deposit calculator available online. Also, one can determine the tax liability using the Income Tax Calculator. Scripbox’s Income Tax Calculator is available online for free and helps in estimating tax liability fromJammu and Kashmir Bank FD investment.

Premature withdrawals and Loan against FD and Overdraft

Jammu and Kashmir Bank allows premature withdrawals of fixed deposit. However, these withdrawals attract a penalty of 0.5% on the contracted interest rate provided the deposits are with the bank for at least 7 days.

Furthermore, Jammu and Kashmir Bank investors can take a loan against their FDs to meet their liquidity requirements without breaking their deposit. The interest rate on loan varies between 4%-6.3%.

Investors can take loans such as home loan (loan against property), business loan, student loan, personal loans, etc., against Jammu and Kashmir Bank FD. Also, one can compute their loan EMI using a loan EMI calculator. The loan EMI calculator works as a business loan EMI calculator, house loan EMI calculator, personal loan EMI calculator, and car loan EMI calculator. Also, the investor can use the EMI calculator in multiple scenarios for comparing the results. They have to change the input variables like house loan interest rate, personal loan interest rate, business loan interest rate, and car loan interest rate.

Nomination Facility and Auto-Renewal

Depositors can nominate beneficiaries for their Jammu and Kashmir Bank term deposits. Furthermore, Jammu and Kashmir Bank offers an auto-renewal facility for fixed deposits. 

Convenience and requirement of savings account

Opening and managing Jammu and Kashmir Bank FD investments is easy and convenient through their online portal. Also, individuals need to have Jammu and Kashmir Bank savings accounts to open a fixed deposit account.

J & K FD Eligibility and Documents Required

To open a FD account with Jammu and Kashmir Bank, one has to be eligible. Following are the individuals that are eligible to invest in Jammu and Kashmir Bank FDs.

  • Resident individuals (including minors)
  • Sole Proprietorships
  • HUFs
  • Partnerships
  • Private and public companies
  • Associations, clubs, trusts, and societies

To open a fixed deposit account with Jammu and Kashmir Bank, one needs the following documents.

  • FD application form, duly filled and signed
  • Passport size photographs
  • PAN Card or form 60 or 61
  • Any other documents as required by firms, companies, and trusts

Pan Card

A PAN card is mandatory to open a Jammu and Kashmir Bank FD account. Also, there are few implications for not disclosing PAN details to Jammu and Kashmir Bank. The TDS rate for non-disclosure of PAN, as per the regulations of 206AA, will be 20% instead of the usual 10%. The Jammu and Kashmir Bank will not issue any TDS certificate. Furthermore, all the exemption certificates issued by J&K Bank, like Form 15G and Form 15H, will be invalid.

Types of Fixed Deposit Schemes offered by Jammu and Kashmir Bank

Following are the types of fixed deposit scheme offered by Jammu and Kashmir Bank:

1. Fixed Deposit Scheme

The fixed deposit scheme is a non-cumulative term deposit where the account holder gets interest on a quarterly basis.

  • Tenure: 7 days to 10 years
  • Minimum Deposit: INR 100
  • Interest Payout: On a quarterly basis
  • Loan Facility: Available
  • Premature Withdrawals: Allowed, however, attracts a penalty.
  • TDS: Deducted if the Form 15G/15H isn’t submitted.

2. Cash Certificate Scheme

The cash certificate scheme is a cumulative deposit scheme that pays compound interest on maturity.

  • Tenure: 7 days to 10 years
  • Minimum Deposit: INR 1,000
  • Interest Payout: On maturity, however, it gets compounded on a quarterly basis.
  • Loan Facility: Available, up to 90% on the deposit amount plus the interest accrued.
  • Premature Withdrawals: Allowed, however, attracts a penalty.
  • TDS: Deducted if the Form 15G/15H isn’t submitted.

4. Mehandi Deposit Scheme

  • Tenure: 5, 7, 10, 12 or 15 years
  • Minimum Deposit: Depends on the tenure and maturity amount
  • Interest Payout: On maturity, however, it gets compounded on a quarterly basis.
  • Loan Facility: Available, up to 90% on the deposit amount plus the interest accrued.
  • Premature Withdrawals: Allowed, however, attracts a penalty.
  • Accidental Insurance Cover: Available for parent or guardian.

5. Tax Saver Term Deposit Scheme

Deposits under the Tax Saver Term Deposit Scheme qualify for tax exemption. Also, deposits up to INR 1,50,000 per annum are eligible for the exemption under Section 80C of the Income Tax Act, 1961.

  • Tenure: 5 years to 10 years
  • Minimum Deposit: INR 1,000 and in its multiples thereafter.
  • Loan Facility: Not available.
  • Premature Withdrawals: Not allowed as there is a 5 years lock-in period.

6. Smart Saver Term Deposit Scheme

The scheme consists of a core deposit or term deposit that entitles the depositor’s operative account (SB or CD) to a sweep facility. In other words, any balance more than the floor level is auto swept and converted to Smart Saver Term Deposit.

  • Minimum Core Term Deposit: INR 25,000 and in multiples of INR 1,000 thereafter.
  • Tenure: Core Deposit Account: 1 year to 10 years, Linked Deposits: 180 days

7. Monthly Yield Deposit Scheme

  • Tenure: 1 year to 10 years
  • Minimum Deposit: INR 1,000
  • Interest Payout: On a monthly basis at a discounted simple interest rate.
  • Premature Withdrawals: Allowed, however, attracts a penalty.

8. Child Care Deposit Scheme

  • Tenure: 7, 9, and 10 years as recurring (Phase-I). 5, 7, and 10 years as a term deposit (Phase-II).
  • Monthly Instalment: INR 100 and in its multiples thereafter.
  • Interest Payout: On maturity
  • Premature Withdrawals: Allowed, however, attracts a penalty.

9. Depositor’s Pension Scheme                

  • Tenure: 84, 105, or 111 months recurring in Phase I and as monthly payouts in Phase II.
  • Monthly Deposit: INR 25 and in multiples of INR 25, INR 50, or INR 100 thereafter.
  • Interest Computation: Quarterly compounding for Phase I and Simple interest for Phase II.
  • Interest Payout: Monthly in Phase II
  • Premature Withdrawals: Allowed, however, attracts a penalty.

Does the J&K Bank offer Recurring Deposits?

Yes, Jammu and Kashmir Bank offers a recurring deposit scheme.

  • Tenure: 6 months to 10 years
  • Minimum Deposit: INR 50 and in multiples of INR 5 thereafter.
  • Instalment Frequency: Monthly
  • Interest Payouts: On maturity
  • Loan Facility: Available, up to 90% on the deposit plus the interest accrued.
  • Premature Withdrawals: Available, however, is subject to applicable penalties.

What is the highest fd rates for J&K bank?

Jammu and Kashmir Bank term deposit interest rates range between 3% and 5.30% for regular citizens and between 3.5% – 5.8% for senior citizens for a tenure of 7 days to 10 years. The FD interest rates of J&K Bank are higher than their savings account. Moreover, senior citizens get a higher rate of interest of 0.5% on their J&K Bank FDs. The interest is paid quarterly to the investor and is calculated as simple interest.

The highest term deposit rate for Jammu and Kashmir Bank is 5.3% for a regular investor for the tenure of 13-5 years. For senior citizens, the highest J&K bank FD rate is 5.8% for a tenure of 3-5 years.  Returns from Jammu and Kashmir Bank term deposits can be calculated using a fixed deposit calculator.