premature closure of deposit to earn higher rate of interest
anyone please explain that provision
As per the deposit rule, if a depositor requests for premature repayment of deposit after the expiry of six months of starting of deposit but before the actual date of maturity than company shall pay one % less interest than actual interest rate payable.
but, if depositor desires to avail higher rate of interest by renewing the deposit before its actual maturity date, the company shall pay him the higher rate of interest (without any Deduction) subject bro condition that the deposit is renewed for a period longer than the unexpired period of deposit.
CAclubindia
