SBI Holiday Account is known as e-RD Holiday Savings Account. SBI has a tie-up with Thomas Cook. So, if you have a dream of travelling across the world or any particular place in the world, then, this scheme is for you.
Features of SBI Holiday Account:
- You can open e-RD account to enroll yourself in Holiday Savings Account scheme of Thomas Cook. Therefore, SBI will share your information given on this account with Thomas Cook.
- Thomas Cook will decide the amount of your e-RD on the basis of the package you choose.
- Installment amount depends upon the holiday package amount which you have chosen with Thomas Cook.
- Your e-RD could be open for 12 months; and, this tenor is fixed, you can’t make any variation in this.
- The interest rates vary from time to time. ROI as applicable at the time of booking the e-RD; and, that will remain same for the entire tenure of the scheme.
- Senior Citizen Rate of Interest benefit is also available with this account.
- On maturity of e-RD account, the maturity instruction given by you for the account will be executed; and, the proceeds will be transferred to either the Savings Account from which the e-RD account was funded or to Thomas Cook.
- You have an option to open your e-Rd account in Individual or Joint names. However, it will be same as the name in debit account, from which RD account is funded.
- Also, close your e-RD account online through “Close A/c” tab. However, SBI will not be liable to cancel the holiday package with travel partner in case e-RD account is closed.
- There is no penalty for pre-closure of e-RD for deposits up to Rs 5.00 lakhs, only if, the deposits have remained with the bank for at least 5 days. And, for deposits above Rs 5.00 lakhs and less than Rs. 1.00 crore, the pre-closure penalty is 1% of the RD amount for all tenors.
- For late payment of e-RD installments, there is a penalty of 1.5% per month.
TDS applicability on e-RD Holiday Saving Account:
You may have to pay TDS on your e-RD account. The TDS is applicable on the CIF value. Also, due to TDS deduction, the amount of funds transferred to Thomas Cook at the time of maturity will automatically be lesser then the actual. Hence, it’s your sole responsibility to pay the difference to Thomas Cook.
Recommended Read : How to Open SBI Saving Account Online?
How to Open SBI Holiday Account?
You could open e-RD Holiday Saving Account through SBI Internet Banking. Here is the procedure:
- Login to your SBI net banking.
- Click on “e-Fixed Deposit” at the top navigation menu. Then, select “My Holiday Saving Account” from left navigation menu.
- Here, click on the URL given below which will take you to Thomas Cook official website. See all the package available with them and accordingly, decide your e-RD holiday saving account amount.
- Leave your details on their website and get a call back to decide which package suits your requirement best.
- Once you finalize your travel, go ahead and open your e-RD.