Equals Nidhi Monthly Income Deposit (MID) is an investment that promises the investor guaranteed returns at an interest rate of 12% per annum. These returns can be availed as fixed monthly income. The most experienced of investors consider MID to be one of the best options to invest funds in, as it provides the customer benefits of three kinds:

• Equals MID keeps the capital intact.

• It ensures that the customer receives a fixed monthly income.

• It yields better returns than instruments that are debt-based.

It’s mandatory to become member of Equals Nidhi Limited by purchasing minimum 10 share of face value Rs.10/- each.

Required KYC Documents:

1.Latest photograph 2. PAN card 3. Any one of the below: a. Aadhar Card b. Passport c. Driving License d. Job card issued by NREGA e. Voter ID card

The following additional documents need to be submitted along with application form:

Account Payee Cheque for Amount deposit.

Key Features of Equals Nidhi Monthly Income Deposit:

The maturity period for the Monthly Income Deposit is 5 years. So, the customer should ideally withdraw the amount after this duration. At the end of the term, the customer will receive all the funds that were invested in the deposit. He/she will also receive the benefit of the fixed monthly income for the complete duration.

If the customer is compelled to withdraw the funds before 5 years, the following benefits will be payable:

• Deposit withdrawal within 1 year – The customer receives no benefits.

• Deposit withdrawal between 1 and 3 years – The customer receives the entire deposit after a nominal deduction of 2% as penalty.

• Deposit withdrawal after 3 years – The customer receives the entire deposit after a nominal deduction of 1% as penalty.

Other significant features of the deposit include the following:

• The investment is absolutely risk-free.

• The customer can choose to nominate another individual to receive the benefits in the event of his/her unfortunate death.

• The deposit provides the option of a Recurring Deposit into which the funds can be moved.

• Even minors can invest in Equals MID.

• For every deposit the customer makes, a separate account will have to be opened. The advantage here is that one person can open multiple accounts, up to the maximum possible account balance limit of Rs.25 lakh. This is the total amount that can be invested by the customer, including his/her share in all joint accounts.

• The maturity amount that is received at the end of the investment term can be reinvested in Equals MID.

• The account can be opened by a cheque or cash. In case the customer chooses to provide the initial payment through a cheque, the date of realisation of the cheque in the Equals account will be the date of opening of the customer’s account.

• A joint account can be opened by two or three adults. All the account holders in the joint account have equal share. A single account can be converted to a joint account, if needed. The reverse is also possible.

When can the depositor assign a nominee?

The depositor can assign a nominee, either at the time of initial investment or during the term of the deposit. In case the depositor wants to nominate after the account is opened, then he/she will be required to submit an application to the concerned Equals Nidhi office.

What happens at the death of the depositor?

In the event of death, the nominee of the investor must close the account. He/she is not allowed to continue investing in the account. The amount that has been deposited, along with the interest accrued (up to the preceding month) is paid to the nominee.

How is the interest payable?

There are three ways in which the interest can be availed:

• The interest will be automatically credited to the savings account with the Equals Nidhi.

• The depositor can request for interest withdrawal every month. He/she will receive the amount either as cash or through a cheque, as required.

• The interest can also be availed through post-dated cheques. The validity of the cheque will be 3 months from the date of issuance. However, this facility can be availed only if the cheque amount is greater than Rs.5000. If the depositor has lost the cheque, he/she will have to sign an indemnity bond for duplicate cheques to be issued. It should be noted that the validity period of the cheque and a month of reconciliation time should have elapsed before the duplicate cheque is issued. If the depositor initiates a pre-closure of the account, he/she will have to return the unused cheques with a penalty of Rs.50 per cheque. If the depositor faces death, the nominee will have to return these unused cheques, but will not be required to pay any penalty. If the post-dated cheque option is chosen for availing interest, the account holder receives the final amount (after 5 years) through the cheque only.

What happens when the interest payout date is on a holiday?

In such a case, the interest will be credited on the immediately preceding working day.

Is any bonus paid at the time of maturity?

Currently, a 12.5% bonus offered at the time of maturity.

What happens when a depositor who holds a joint account faces death?

After the death of a joint holder, the account is treated as a single account held by the surviving account holder. Then the account will continue, as per the maximum limit of the surviving depositor’s investments in the deposit.

Is the monthly interest automatically deposited to the Equals Nidhi Recurring Deposit (RD)?

No automatic deposit will not be done. The interest from the monthly income deposit is first moved to the Equals savings account. Subsequently, the investor can deposit this amount into the RD account.

The income you earn on your FD is termed as Income from Other Source and it is fully taxable.

TDS will not deduct, if your interest income from fixed deposits is less than Rs.40,000 in a year.

You need to submit Form 15G and Form 15H with the bank at the beginning of the financial year. Banks will not deduct TDS following the form submission.

Under tax saver FDs, the maximum exemption you can get is Rs.1.5 lakh.

The tax benefit is offered under Section 80C of the Income Tax Act, 1961.