Product Details
Smart Saver product has an inbuilt mechanism of sweeping deposit amount between an operative account (CA/SA) and a term deposit account to enable high liquidity as well as higher returns on the deposit amount. Unlike traditional fixed deposits that require complete liquidation for withdrawals, the Smart Saver Deposit scheme permits partial withdrawals in multiples of ₹1 while the remaining balance continues to earn interest at the original rate.
Tenor:
Below maturity periods will be available:
Ø 180 days
Ø One year
- 180 days maturity period will be by default, however as per customer request smart saver TDs can be made for 1 year also.
On maturity, smart saver Term deposits shall be automatically transferred to the linked operative account.
Sweep Facility in various variants
Saving Bank Accounts:
The auto sweep facility (Sweep Out) in respect of General Saving Account & all other Variants wherein the AMB is equal to or less than ₹ 25000 shall operate above the Minimum Threshold balance of ₹25,000.
- Minimum Threshold balance in other Saving Account variants shall be as per their AMBs as under:
Premium Saving Scheme
₹ 1,00,000
Pink Gold Scheme for Women
₹ 1,00,000
Pink Platinum Scheme for Women
₹ 5,00,000
- If the balance in the operative account goes below the minimum threshold limits defined above, same shall be adjusted through Sweep In mechanism at End of Day.
At EOD, Sweep Out shall be in multiples of ₹ 10,000.
Current Accounts:
- The Minimum Threshold Balance in Basic Current Deposit Account beyond which auto‐sweep (Sweep out) facility will operate shall be ₹ 50,000.
- The Minimum Threshold Balance in other Variants beyond which auto sweep facility will operate shall be as per their AMBs as under:
Premium Current Account
₹50,000
Premium Plus Current Account
₹ 1,00,000
Gold Current Account
₹ 2,50,000
Platinum Current Account
₹ 5,00,000
- At EOD, sweep out shall be in units of ₹ 50,000.
- If the balance in the operative account (CA/SA) goes below the threshold limit defined above, same shall be adjusted through Sweep in mechanism at EOD
- The term deposits shall be broken on LIFO basis, i.e. the requisite units of term deposit/s created last will be encashed first.
Eligibility
Individuals, singly or Joint,
HUF (Hindu Undivided Families),
Sole Proprietorship Firms
Partnership Firms
Limited Companies
Trust Accounts
Limited Liability Partnerships
Rate of Interest (Subject to Change)
- Interest rate payable for SSDs irrespective of the amount will be as per the interest rate structure applicable on Domestic, NRE & NRO Rupee term Deposits of less than 3.00 Cr (Withdrawable Segment).
- Interest on the SSDs shall be applied quarterly on cumulative basis.
- Click here for rate of Interest
Documentation
Filled in Application form/Consent Letter for availing Smart saver Deposit Facility.
FAQs
Who can open an account under Smart Saver Deposit scheme of J&K Bank?
Accounts under this scheme can be opened by:
- Individuals, singly or joint
- HUF (Hindu Undivided Families)
- Sole Proprietorship Firms
- Partnership Firms
- Limited Companies
- Trust Accounts
- Limited Liability Partnerships
What are the tenures for which the Term Deposits can be opened under this scheme?
- 180 days
- One year
What is the value addition in this scheme?
Smart Saver product has an inbuilt mechanism of sweeping deposit amount between an operative account (CA/SA) and a term deposit account to enable high liquidity as well as higher returns on the deposit amount.
What is Auto Sweep (Sweep Out)?
Under Auto Sweep, the amount in the operative account beyond the threshold minimum balance is auto-swept to form linked term deposits.
What is Reverse Sweep (Sweep In)?
Under this, the deposit amount in the linked Smart Saver Term Deposit is available for clearing of debit instruments (cheques, standing instructions, ATM transactions, withdrawals, etc.). Further, under the Sweep In mechanism, the linked Smart Saver Deposits also break to maintain the minimum balance requirements of the linked operative account.
Is partial withdrawal facility available in this scheme?
Premature withdrawal will be allowed through sweep in on all the term deposits created via sweep out facility. No penalty shall be imposed on such premature withdrawals. However, the interest rate to be paid on these term deposits shall be the rate applicable for the period these deposits remain with the bank. No interest shall, however, be paid on withdrawn amount if withdrawal is before the minimum prescribed number of days for allowing interest on the term deposit.
Is Loan/Overdraft Facility available for the Smart Saver Term Deposits?
No Loan/Overdraft facility shall be allowed on this scheme.
