CUMULATIVE DEPOSIT SCHEME

Primarily a hosuehold saving plan, the Union Cumulative Deposit Scheme encourages small investors to save in easy monthly instalments over a fixed period of time. Monthly installments can be for any amount starting from as low as Rs.50/- onwards An account can be opened for any period ranging from 6 months to 120 months, in intervals of 3 months The installment amount selected a the start of the scheme will be payable every month The number of installments once selected, cannot be altered. However, in the unlikely case of the monthly installment being discontinued for a valid reason, the account holder can convert the amount of installments already paid, into Fixed or Reinvestment Deposit for a period longer than the remaining period of the Cumulative account. For the period the cumulative account has run, compound interest at the applicable rate is payable Interest at the permissible rate is compounded every quarter. The maturity amount will be paid one month after the deposit of the last installment (latest table giving maturity values available with the branch A pass book will be provided to the depositor.