The difference between ordinary Fixed Deposit and Special Fixed Deposit (SFD) is that interest is added to the principal in the case of the latter scheme and hence interest at compounded rate will be available to the depositor for SFD. Procedure and formalities for opening SFD account are the same as of Fixed Deposit.
For Closure of Deposits, Deposit receipts should be surrendered at the issuing branch of the Society duly discharged over requisite revenue stamp, for receiving maturity proceeds. Cash payments by way of proceeds of deposits should be restricted to less than Rs.20,000/- including interest (two or more deposits in the same name closed on the same day should also be reckoned for the purpose – total deposit proceeds to be paid in cash on a single day should be less than Rs.20,000/-)
Application of Interest
Interest on SFD at the prescribed rate is added to the deposit amount on completion of three months from the date of opening of the deposit on a day-to-day basis – interest is applied on completion of every three months initially for the principal amount and thereafter for the amounts obtained after adding interest to the amount at the end of the period.