Your travel goals are now not impossible! Tours and travel operator Thomas Cook has tied up with leading banks like State Bank of India (SBI) to offer a holiday savings account which enables you to save for planned trips both in India and abroad. This facility enables you to open a recurring deposit (RD) with SBI, the largest lender of the country, specifically for planned trips, according to sbi.co.in. You will not only get an attractive interest rate on the same but will also be getting a respite on one of the RD instalments.
How to avail SBI's offer on recurring deposit for holiday savings account:
1) Visit Thomas Cook HSA website and choose a package of your choice.
2) The cost of the package you choose will be divided by 13. You will be redirected to the OnlineSBI portal where you can setup an e- recurring deposit (e-RD) account for 12 monthly instalments.
3) Your e-recurring deposit 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.
4) Thomas Cook will fund the balance amount i.e. the 13th instalment to purchase your package after factoring in the accrued e-recurring deposit interest.
Interest rates on SBI recurring deposit for holiday savings account:
Interest rates on SBI recurring deposits are the same as those on fixed deposits. On a recurring deposit of one year but less than two years, SBI pays an interest rate of 6.65 per cent.
Five key things to know about SBI recurring deposit for holiday savings account
1) The tenor for this recurring deposit is fixed at 12 months and the amount is decided by Thomas Cook based on the package chosen by the customer.
2) If this e-recurring deposit account is closed prematurely, the proceeds will be credited to the account from which the e-recurring deposit account was initially funded.
3) Premature closure of this e-recurring deposit account is allowed on application of SBI's premature withdrawal penalty. Penalty in case of delay in payment of instalment of recurring deposit shall be Rs 1.50 for every Rs. 100, per month.
4) On maturity of e-recurring deposit 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-recurring deposit account was funded.
5) This e-recurring deposit account is subject to TDS or tax deducted at source. 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, said SBI.