How To Open Canara Bank MACAD Term Deposit Account ?

Askbanking

3 years ago

Canara Bank MACAD Term Deposit Account or Motor Accident Claim Annuity Deposit (MACAD) – Canara Bank has introduced a term deposit product for the compensation amount awarded by tribunals / Courts to victims / claimants of motor accident to Term Deposits and repayment of the same in monthly annuity installments (comprising part of principal amount along with interest) through Savings Deposits Account.

This is useful for the beneficiaries of motor/ railway accidents.

Also Know – How To Apply For IPO Through Canara Bank Internet Banking ?

Eligibility & Features of Canara Bank MACAD Account

Scheme Features	Particulars / Details
Scheme	Scheme Code: MACAD Scheme Name: Motor Accident Claims-Ann.
Purpose	One-time lump sum amount, as decided by the Court / Tribunal, deposited to receive the same in Equated Monthly Instalments (EMIs), comprising a part of the principal amount as well as interest.
Eligibility	Individuals including Minors through guardian in single name.
Mode of Holding	Singly
Type of account	Motor Accident Claims Annuity (Term) Deposit Account (MACAD)
Deposit Amount	Maximum: No Limit Minimum – Based on minimum monthly annuity Rs. 1,000/- for the relevant period.
Tenure	36 to 120 months In case the period is less than 36 months, normal FD will be opened. MACAD for longer period (more than 120 months) will be booked as per direction of the Court.
Rate of interest	Prevailing rate of interest as per Tenure.
Annuity Payment	Branches have to compulsorily open MACT Saving Bank account before opening of MACAD annuity deposit account. Annuity payment should be credited in MACT Saving Bank account only.
Receipts/ Advices	No Receipts will be issued to depositors. Passbook will be issued for MACAD.
Loan Facility	No loan or advance shall be allowed.
Nomination facility	Available. MACAD shall be duly nominated as directed by the court.
Premature Payment	Premature closure or part lump sum payment of MACAD during the life of the claimant will be made with permission of the court. However, if permitted, new annuity account will be opened for balance tenure & amount, applicable rate of interest will be the prevailing rate as on the date of opening of new account. In case of balance tenure is less than 36 months then new MIS (Fixed deposit) account will be opened at current prevailing rate. Premature closure penalty will not be charged. In case of death of the claimant, payment to be given to the nominee. The nominee has an option to continue with the annuity or seek pre-closure. If balance tenure will remain less than 36 months then MIS (Fixed deposit) account to be opened at current prevailing rate.
Tax deduction at source	Interest payment is subject to TDS as per Income Tax Rules. Form 15G/15H can be submitted by the Depositor to get exemption from Tax deduction. The annuity amount on monthly basis net of TDS, will be credited to the MACT Savings Bank account.