State Bank of India along with Thomas Cook India have come up with a unique savings plan for holiday goers. This scheme will help to save some monthly amounts in the form of a recurring deposit with the Bank in order to avail a vacation package listed under Holiday Savings Account packages on Thomas Cook website.
5 Must Know Things If Planning For A Holiday
Once you choose your package from the Thomas Cook website, you should note:
1. The cost of the package you choose will be divided by 13. You will be redirected to the OnlineSBI portal where you can setup an e- Recurring Deposit (e-RD) account for 12 monthly instalments.
2. Your e-RD will earn interest as per the prevailing interest rates for the 12 month period.
3. At the end of 12 months, the maturity proceeds will be transferred to Thomas Cook to pay for your pre-selected holiday package.
4. Thomas Cook will fund the balance amount i.e. the 13th installment to purchase your package after factoring in the accrued e-RD interest.
5. This e-RD account in INR will be generated in the name(s) of the account holder(s) as the account from which it is funded.
Premature closure of this e-RD account is allowed and the Bank's applicable premature withdrawal penalty will be applied.
Note that bank will not be liable for any issues/ complains/ loss arising due to non-fulfilment of terms by Thomas Cook India.
The TDS will be applicable on this RD. Customer has the option of selecting which account to debit for payment of TDS on internet banking.