Last Updated on 07/11/2019
IOB MACAD

Term Deposit Scheme: Motor Accident Claims Annuity (Term) Deposit Account- IOB MACAD

Eligibility:

Individuals including Minors through Guardian in single name (Based on court order)

Purpose

One lump sum amount, as decided by the Court / Tribunal, deposited to receive the same in EMIs, comprising a part of the principal amount as well as interest

Rate of Interest

As applicable to regular term deposit account based on tenure

Nature of Deposit and Deposit amount

Annuity (Term) Deposit Account

Minimum: Based on minimum monthly annuity payout of Rs. 1000/-for the relevant period

Maximum: No Limit

Period of Deposit

1. 36 Months to 120 Months

2. In case the period is less than 36 months, normal FD to be opened

Receipts / Advices

Deposit Receipts will not be issued to the claimant

Passbook or Statement containing Deposit account Number, Amount, Date of Maturity etc. will be issued in lieu of deposit receipt.

Nomination

Permitted

Loan Facility

No loan or Overdraft shall be allowed

Premature Closure / Part lump-sum payment

Premature closure or part lump-sum payment of MACAD during the life of the claimant can be made with permission of the Court. However, if permitted, the annuity part will be reissued for balance tenure and amount, if any, with change in annuity amount

Premature closure penalty will not be applicable

TDS

(i) 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

(ii) The annuity amount on monthly basis net of TDS will be credited to the MACT Savings Bank account.